Households in Romania had 1,843 billion lei (over EUR400 billion) assets last year, with real estate assets accounting for most of this amount, over 77%, according to central bank data.
Households’ net wealth increased by 10% in 2017, because of pick-up in financial and real estate assets.
Net financial assets of households increased by about 7% to RON415.4 billion last year, and real estate assets rose by 10% to RON1,427.7 billion, according to Romania’s central bank data.
Households’ net wealth reached its highest level in nine years at the end of 2017. It was only higher in 2008 (RON2,047 billion).
Net financial assets, calculated as a difference between the financial assets and the financial liabilities, doubled compared with 2008 and more than tripled compared with 2009, when they stood at RON126 billion.
Non-financial (real estate assets) saw a sizeable adjustment compared with the values in previous reports, as a result of the house price reestimations, the central bank said.
Real estate assets continue to account of the bulk of the net wealth of Romanians despite a downward trend compared with economic boom years, due to the price adjustments during the crisis. Real estate assets include only buildings.
Households’ total debt stood at RON142.8 billion (some EUR31.2 billion) at the end of last year, up 7.4% year-on-year, due to the rise in bank loans, which account for most of the household debt. Total debt households as a percentage of the GDP dropped to 16.5%.
(English version by Loredana Fratila-Cristescu)