The prices of new homes sold on the Romanian market increased by 3.1% in 2020 compared to the previous year, reaching an average of 1,322 EUR / mÂ². Thus, Romania ranks fourth among the 24 countries analyzed by the Deloitte Real Estate Index 2021 ratio, in ascending order of price, after Bulgaria, Bosnia and Herzegovina and Portugal. When it comes to housing affordability, calculated based on the number of average gross annual salaries needed to buy new standard housing (70 mÂ²), Romania is in the middle of the ranking.
For the first time, Austria took a leading position in 2020 as the most expensive country of those analyzed, with an average price of 4,457 EUR / mÂ², followed by France with 4,421 EUR / mÂ². An average price of over 4,000 EUR / mÂ² was also recorded last year in Germany, the UK and Israel. In contrast, with the lowest average transaction price for a new home, is Bulgaria (578 EUR / mÂ²), followed by Bosnia and Herzegovina (881 EUR / mÂ²).
The strongest price growth in 2020 was recorded in Hungary, where the transaction price of new housing increased by 12.3% compared to the previous year, in the Netherlands and Germany (10.81% each ). Overall, house prices increased last year in 21 of the 24 countries analyzed. Price decreases were recorded in Norway, with a drop of 4%, in Bosnia and Herzegovina (-1.54%) and in Italy (-1.24%). Romania, with an annual price increase of 3.1%, ranks sixth in ascending order.
âDespite the uncertainty surrounding the European economy in 2020, in most cases the residential market has seen price increases. This development is due to the fact that most countries reported unprecedented demand for new housing soon after the restrictions imposed in the context of the pandemic were lifted, as well as, most likely, due to rising construction costs. and the accessibility of funding. For the second half of 2021, the majority of study participants (73%) believe that prices will continue to rise in a general inflationary climate, âsaid Alexandra Smedoiu, partner, Deloitte Romania, and leader in the real estate sector.
The Deloitte Property Index 2021 also analyzes 61 European cities and Paris leads the most expensive housing, with an average price of 12,917 EUR / mÂ² for new housing, followed by Tel Aviv (10,332 EUR / mÂ²), Munich ( 8,700 EUR / mÂ²) and London (7,916 EUR / mÂ²). Three Romanian cities are included in the ranking, respectively Cluj-Napoca (1,800 EUR / mÂ²), Bucharest (1,440 EUR / mÂ²) and Timisoara (1,270 EUR / mÂ²).
Paris also leads the ranking of cities with the highest rents, with 28.6 EUR / mÂ² / month, followed by London (26.1 EUR) and Oslo (24.7 EUR).
In order to make a relevant comparison of the markets analyzed, the study also calculates the affordability of housing according to the number of average annual gross wages required to purchase a standard new home (70 mÂ²). A Romanian needs seven annual salaries for such a purchase, which represents an average level of affordability. The most difficult to access housing is in Serbia, where 15.2 average gross annual wages are needed for new housing, and the most affordable are in Portugal, Belgium and Ireland (3.1 average annual wages).
In contrast, Romania has the most expensive mortgage loans, with an average interest rate of 5.3% per annum. Portugal is the opposite, where interest rates fluctuate around 1% per year.
The 10e edition of the Deloitte Real Estate Index A study analyzes the evolution of the residential real estate market in 24 countries and 61 European cities in 2020.
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