Romania has some of the cheapest mortgage loans in Central and Eastern Europe, at similar levels to those in Western Europe, when considering average national salaries and the costs of purchasing a two-room (one-bedroom) apartment through a mortgage loan over a 25-year period, according to a report by an online broker.The average mortgage rate required to purchase a two-room apartment in Bucharest accounts for approximately 45% of the average net salary in Romania, making it one of the best values for this indicator in the region, says Ipotecare.ro. The company's analysis considered the purchase of a 50-square-metre apartment valued at 92,500 euros, with a fixed interest rate of 5.45%, which is the average rate for mortgages in Bucharest in the first quarter of this year.This indicator in Bucharest is significantly better compared to other European capitals, such as Athens, where the mortgage rate accounts for 58% of the average net salary in Greece, or Budapest, where the same indicator reaches 74%. The average mortgage rate in Warsaw represents about 94% of the average net salary in Poland, while in Prague, it accounts for 99% of the Czech average salary."Mortgage interest rates in Romania have become competitive, significantly lower than those in the region - for example, the average mortgage rate in Budapest is 7.3%, and in Warsaw, it's 8.3% - and are at a reasonable level compared to those in Western European countries, where the comparison is made with loans granted in euros, not in local currency, and the inflation rate is more than twice as low as in Romania. Additionally, transaction costs through mortgages are much higher in Western countries: for example, broker fees in Romania are zero, whereas in Western Europe, they can amount to tens of thousands of euros, considering commissions, taxes, and insurance, all calculated on properties at least double or triple the local values," commented Alexandru Radulescu, managing partner at SVN Romania | Credit & Financial Solutions, the exclusive partner of Ipotecare.ro.The rate-to-salary indicator in Bucharest is higher compared to Berlin, where it stands at 39%, or Rome and Madrid, where the same indicator is around 41%. Therefore, even though mortgage interest rates in these countries may be lower by up to two percentage points compared to Romania, the values of the rate-to-salary ratio are not significantly different. At the same time, the Ipotecare.ro indicator is much higher in London (65%) or Paris (85%).In 2024, a total of 9.2 billion euros in mortgage loans were granted nationwide, according to data from the National Bank of Romania, a 42% increase compared to 2023. These figures also include refinancings, conversions, transfers and restructurings. The number of homes and apartments sold nationwide in 2024 increased by 6.6% compared to 2023, while in Bucharest-Ilfov, 7.6% more properties were sold.
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