www.business-review.eu Business Review | August 2021
6 REAL ESTATE
Home buying and renting costs continue to rise Prices of new dwellings on the Romanian market increased by 3.1 percent in 2020 compared to the previous year, reaching an average of EUR 1,322/sqm. Romania ranks fourth among the 24 countries analysed in the Deloitte Property Index 2021 report, in increasing order of prices, after Bulgaria, Bosnia and Herzegovina, and Portugal. As for the affordability of housing, calculated based on the number of average gross annual salaries needed to purchase a new standard dwelling (70 sqm), Romania ranks in the middle of the list. By Aurel Constantin countries reported unprecedented demand for new housing shortly after pandemic restrictions were lifted, and likely also due to the rising construction costs and higher accessibility of financing. For the second half of 2021, the majority of survey participants (73 percent) estimated that prices would continue to rise in a general inflationary climate,” said Alexandra Smedoiu, Partner at Deloitte Romania and Real Estate Industry Leader. The 2021 Deloitte Property Index also analysed 61 European cities, with Paris topping the list for the most expensive housing, with an average price of EUR 12,917/sqm for a new dwelling, followed by Tel Aviv (EUR 10,332/ sqm), Munich (EUR 8,700/sqm), and London (EUR 7,916/sqm). Three Romanian cities were 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 for cities with Paris leads the ranking for cities with the highest rent prices, with EUR 28.6/sqm/month
F
the highest rent prices, with EUR 28.6/sqm/ month, followed by London (EUR 26.1) and Oslo (EUR 24.7).
or the first time, Austria took a leading
12.3 percent compared to the previous year,
position in 2020 as the most expen-
followed by the Netherlands and Germany
sive of all analysed countries, with an
(with 10.8 percent each). Overall, house prices
analysed markets, the study also calculates
average price of EUR 4,457/sqm, followed by
rose last year in 21 out of the 24 countries
the affordability of housing based on the
France with EUR 4,421/sqm. Average prices of
analysed. Price declines were recorded in
number of average annual gross salaries need-
over EUR 4,000/sqm were also recorded last
Norway, with a 4 percent decrease, Bosnia
ed to purchase a new standard dwelling of 70
year in Germany, the United Kingdom, and
and Herzegovina (-1.54 percent), and Italy
sqm. A Romanian needs seven annual salaries
Israel. At the opposite end, with the lowest
(-1.24 percent). Romania, with an annual
to make such a purchase, which represents
average transaction prices for new dwellings,
increase of 3.1 percent in prices, ranks sixth in
an average affordability level. The hardest-
are Bulgaria (EUR 578/sqm) and Bosnia and
the ascending order.
to-reach dwellings are in Serbia, where 15.2
Herzegovina (EUR 881/sqm).
“Despite the uncertainty surrounding the
To conduct a relevant comparison of the
gross average annual salaries are needed for
European economy in 2020, in most cases,
a new home, while the most affordable are in
was recorded in Hungary, where the average
the residential market experienced price
Portugal, Belgium, and Ireland (3.1 average
transaction price of new dwellings rose by
growths. This is due to the fact that most
annual salaries).
The highest price growth during 2020
