The drop in real estate prices to a minimum level, news regarding the exhaustion of “Prima Casa” funds, very low interest rates offered by banks, and statements from the BNR Governor regarding the risk of a new real estate bubble that could lead to price increases have prompted Romanians to go shopping.
Imobiliare.NET recorded a 20% increase in real estate market demand in July. The highest growth was recorded for 2-room apartments, with an increase of over 28%, followed by studio apartments, for which 25% more requests were recorded in July compared to the previous month.
Normally, in real estate, the months of July and August are known as “dead months,” with significantly lower demand compared to the March-May period, but this year things have changed. Very low interest rates on deposits (below 3%/year) have led many to withdraw their money from banks and invest it in real estate.
The calculation is very simple: if you have €50,000 in an account, you earn a maximum of €1,300/year from interest, which means approximately €100/month, but if you invest it in a 2-room apartment that you rent out, the gain can be four times higher, with the average rent in Bucharest being €400/month.
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Source: Imobiliare.Net
Frequently Asked Questions
Why is real estate demand increasing in Romania?
Demand is driven by record-low property prices, the depletion of “Prima Casa” funds, and low bank interest rates on deposits, making real estate a more attractive investment.
Which types of properties are most popular?
Two-room apartments saw the highest growth in demand at 28%, followed by studio apartments with a 25% increase.
Is real estate a better investment than bank deposits?
Currently, yes; while a €50,000 deposit yields about €100/month in interest, renting out a similar-value apartment in Bucharest can generate around €400/month.