Deloitte Property Index: Romania has some of the cheapest new dwellings in Europe
The prices of new dwellings sold on the Romanian market increased by 3.1% in 2020 compared to the previous year, reaching an average of EUR 1,322/sqm. This places the country fourth among the 24 countries analyzed in the Deloitte Property Index 2021 report. Only Bulgaria, Bosnia and Herzegovina and Portugal have cheaper housing than Romania.
Austria topped the ranking in 2020, with an average price of EUR 4,457/sqm, followed by France with EUR 4,421/sqm. Average prices of over EUR 4,000/sqm were also recorded last year in Germany, the United Kingdom and Israel.
At the other end, Bulgaria has the cheapest new dwellings (EUR 578/sqm), followed by Bosnia and Herzegovina (EUR 881/sqm).
The highest price growth during 2020 was recorded in Hungary, where the transaction price of new dwellings rose by 12.3% compared to the previous year. The Netherlands and Germany come next - 10.81% each.
Overall, house prices rose last year in 21 countries out of the 24 analyzed. Price declines were recorded in Norway, with a 4% decrease, Bosnia and Herzegovina (-1.54%) and Italy (-1.24%). Romania, with an annual increase of 3.1% in prices, ranks sixth in the ascending order.
However, when it comes to the affordability of housing, calculated according to the number of average gross annual salaries needed to purchase a new standard dwelling (70 sqm), Romania is in the middle of the ranking. A Romanian needs seven annual wages for such a purchase, which represents an average level of affordability.
The hardest-to-reach dwellings are in Serbia, where 15.2 gross average annual salaries are needed for a new home. On the other hand, the most affordable new dwellings are in Portugal, Belgium and Ireland (3.1 average annual salaries).
The same report also said that Romania has the most expensive mortgage loans, with an average interest rate of 5.3% a year. Portugal is at the opposite end, where interest rates fluctuate around 1% a year.
The Deloitte Property Index 2021 also analyzed 61 European cities. Paris leads the top of the most expensive housing, with an average price of EUR 12.917/sqm for a new dwelling. Tel Aviv (EUR 10,332/sqm), Munich (EUR 8,700/sqm), and London (EUR 7,916/sqm) are next.
Three Romanian cities are also included in the ranking: Cluj-Napoca (EUR 1,800/sqm), Bucharest (EUR 1,440/sqm), and Timisoara (EUR 1,270/sqm).
Paris also leads the ranking of the cities with the highest rents - EUR 28.6/sqm/month. It is followed by London (EUR 26.1) and Oslo (EUR 24.7).
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