Rising average incomes outpacing real estate price growth has improved housing affordability in Romania, setting it apart from other Central and Eastern European (CEE) countries such as Poland, the Czech Republic, and Hungary.
In Bucharest, house prices have increased by approximately 50% over the past five years, while Cluj-Napoca has seen an 80% rise. By comparison, most major cities in the region have reported increases of 80% to 100% during the same period, according to Colliers.
Moreover, the gap between the cost of renting and owning has become increasingly evident, with renting often proving to be the more economical choice. In Bucharest, the average rent represents around 45% of a monthly salary, significantly lower than in other capitals in the region, such as Warsaw or Bratislava, where it approaches 70%.
However, Romania remains one of the countries with the lowest mortgage penetration rates in the European Union – less than 2% of the total housing stock, compared to 15% in Hungary, 14% in Poland, and 26% in the Czech Republic.