Romania’s central bank sees residential properties as undervalued

Romania’s residential real estate market remains undervalued despite continued price increases, as housing prices remain below levels justified by household income, financing costs and rental prices, according to the National Bank of Romania (BNR). Independent analysts have a different opinion.

"Housing prices are below the level of economic fundamentals both nationally and in Bucharest. Regardless of the methodology used to estimate the degree of over/undervaluation, the results consistently indicate an undervaluation of the residential real estate market," the BNR said in its latest Financial Stability Report, cited by Profit.ro.