Fewer homes bought with bank loans in Romania
Transactions of apartments and houses began to decline starting from the spring of this year, as a result of high energy costs, rising construction materials and fuel prices, in addition to the rising costs associated with mortgages, according to real estate consultancy Colliers.
In Bucharest, owners took on bank debt for 50% of the apartments traded in the first six months of this year. Meanwhile, 60% of apartments were bought on loan, which means that currently not only are there fewer transactions that depend on bank loans, but also that part of the demand has become unbankable and can no longer afford the loan costs for buying the desired home.
In the rest of the country, 44% of transactions were made with credit in the first half of the year, a percentage slightly down from the level of 45% recorded in 2021. Recent demand-side indicators suggest that cheaper homes are relying more on credit, while more expensive, luxury homes are largely traded for cash.