The Romanian housing market seems to be facing a slowdown in demand from buyers. One of the major players in the field, Victor Căpitanu, co-CEO of ONE United, offers two main reasons for this trend:
Lack of Supply: There's a significant shortage of available apartments for sale on the market. This can be attributed to several factors, including:
Decrease in construction permits: The number of issued construction permits has dropped significantly in recent years, leading to a reduction in the supply of new housing.
High construction costs: Building materials and labor costs have risen substantially, making real estate projects more expensive to develop.
Rising Interest Rates: Mortgage interest rates have climbed considerably in the past year, due to the restrictive monetary policy of the National Bank of Romania (BNR). This makes buying an apartment with a mortgage more expensive and less accessible for many Romanians.
Romanians' Wealth:
Victor Căpitanu highlights the fact that 97% of Romanians own their homes. This indicates a higher level of wealth compared to other European countries, where the homeownership rate is significantly lower.
Conclusion:
The decline in demand for apartments in Romania is caused by a combination of factors, including a lack of supply and rising interest rates. However, the high homeownership rate suggests a generally good state of wealth among the population.
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