Report:Romania and Bulgaria have the cheapest mortgage loans in the region

Romania and Bulgaria have the cheapest mortgage loans in the region, considering the average wages and the costs of buying a one-bedroom apartment through a 25-year mortgage loan, according to a market report issued by online broker Ipotecare.ro.   The average monthly instalment of a mortgage loan required to purchase a one-bedroom mass market apartment in Bucharest, completed for at least 30 years and outside semi-central areas, amounts to 48% of the average net wage nationwide. The value registered by Ipotecare.ro index is higher than the 45% level recorded earlier in the spring, due to home prices increases.   The Ipotecare.ro index considered the purchase of a one-bedroom apartment, 50 square meters net surface area, with a market value of EUR 100,000 and a fixed interest rate of 5,55%, a level registered for the mortgage loans granted in Bucharest this October.   A lower regional value of the instalment/wage ratio is recorded only in Sofia, where the average monthly mortgage instalment required for buying a one-bedroom apartment amounts to 43% of the average wage registered in Bulgaria.   On the other hand, mortgage loans are more accessible in Bucharest compared to Athens, where the average instalment amounts to 62% of the average wage registered in Greece, and also compared to Budapest, where the average instalment holds a percentage of 72% of the average wage registered in Hungary. The same instalment/wage indicator has a value of 78% in Chisinau, of 82% in Warsaw and 97% in Prague.   “Romania is the only country within the European Union where the average mortgage interest rates are lower than the benchmark reference interest rates set by the local central banks. Mortgage instalments are lower in Western European countries because they are granted in Euros and the inflation rate is lower, which enabled the European Central Bank to decrease Euribor to 2%. In Eastern Europe, including Romania, inflation remains considerably higher, which leads to higher interest rates but also to a sharper increase in home prices, thus resulting in a lower instalment/wage ratio than that recorded in the spring. However, Romania gains through significantly lower associated costs, from commissions to taxes,” commented Alexandru Radulescu, managing partner at SVN Romania | Credit & Financial Solutions, the exclusive partner of Ipotecare.ro.   The lowest value of the instalment/wage ratio is being registered in Berlin and Rome, where the average mortgage loan instalment amounts to 38% of the nationwide average wage. The index has a value of 41% in Wien, 42% in Madrid and 47% in Amsterdam. On the other hand, the average instalment required for buying a one-bedroom apartment in London and Paris holds a share of 86% – 87% of the average nationwide net wages.   In the analysis, the purchase of a one-bedroom mass-market apartment was taken into consideration, with a net surface of 50 square meters, delivered for at least 30 years and located outside the central and semi-central areas of the analysed EU’s capital cities. Also, a 25-year mortgage was considered, 15% downpayment and a fixed interest rate in the first five years, without including the associated costs, such as fees, taxes and insurances. To determine the average interest rate, the mortgage loans with fixed interest rates from the top three banks in each analysed country were considered.   Mortgage loans worth EUR 7.4 billion were granted in total in Romania in the first eight months of 2025, up 34% compared to same period from 2024, according to the National Bank’s data – a volume that also includes refinancings, conversions, transfers and restructurings. The number of homes sold in Romania in the first three quarters of 2025 was 0.3% lower compared to the result recorded in same period of 2024, according to the statistics of the National Agency for Cadastre and Land Registration.