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futureofromania

Insight of the Day: Deloitte study: Romania remains third in the list of European countries with cheapest new homes

Findings:

  • Romania is the third European country with the cheapest new housing, with an average price of 1,504 EUR/sqm in 2023.

  • Housing affordability in Romania has improved, with the average person needing 5.9 annual gross salaries to buy a new 70 sqm home in 2023.

  • The most expensive housing is in Austria, Germany, and France, with prices decreasing compared to 2022.

  • Cluj-Napoca has the highest housing prices and rents in Romania.

Key Takeaway: Housing in Romania is among the most affordable in Europe, but high interest rates and construction costs are influencing the market.

Trend:

  • Increasing housing prices in Romania and most European countries.

  • Improved housing affordability in Romania.

  • Decreasing prices in countries with the most expensive housing.

Consumer Motivation:

  • The desire to purchase financially accessible new homes.

  • The need to benefit from better living conditions and to invest in real estate properties.

What is Driving Trend:

  • High interest rates affecting construction costs and housing prices.

  • Reduced inflationary pressures and signals of interest rate cuts from the ECB and BNR.

Who are the People Article is Referring to:

  • Consumers in the residential real estate market in Romania and Europe.

  • Real estate developers.

  • Financial authorities (ECB, BNR).

Description of Consumers Product or Service Article is Referring to:

  • New homes, apartments, and residential houses.

  • Consumers are primarily individuals or families looking to buy new homes, mostly financially active adults.

Conclusions:

  • The real estate market in Romania is growing, with improved affordability for new homes.

  • Interest rates and construction costs remain major challenges.

Implications for Brands:

  • Brands in the real estate sector need to adapt to economic changes and offer advantageous financial solutions.

  • Increased construction activity to meet demand.

Implication for Society:

  • Improved housing affordability can enhance quality of life and financial stability for many families.

  • The need to stimulate housing construction to meet growing demand.

Big Trend Implied:

  • Moving towards a more affordable and stable real estate market in Romania, with potential economic growth supported by decreasing interest rates and increasing population incomes.

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