The specialists calculated the rate related to a 25 -year mortgage loan, compared to the average salary at national level and the costs of buying a two -room apartment, indicating what the differences between Romania and other European states are.
The mortgage loans are lower in Rome and Berlin than in Romania. Photo archive
According to experts, the average rate of a necessary mortgage loan to buy a two -room apartment in Bucharest has a percentage of about 45% of the average net salary at national level, Romania having one of the best values of this indicator at regional level.
In the analysis of mortgage.ro it was taken into account the purchase of an apartment with a useful area of 50 square meters, with a value of 92,500 euros, and a fixed interest of 5.45% – average level registered for the mortgage loans granted in Bucharest in the first quarter of this year.
The value of the indicator registered in Bucharest is significantly better compared to Athens, where the average rate required to buy the same type of apartment has a percentage of 58% of the average net salary in Greece, or with Budapest, where the same indicator has a value of 74%. The average rate holds in Warsaw a percentage of about 94% of the average net salary registered in Poland, while the average rate required to buy a similar apartment in Prague has a percentage of 99% of the average salary in the Czech Republic.
“The interest rates in Romania have reached a competitive level, being significantly lower than those registered in the region – for example the average mortgage interest in Budapest is 7.3% and the one in Warsaw is 8.3% – and at a reasonable level compared to those in western Europe – where the comparison is made with loans, not in the local currency, not in the local currency compared to Romania. In addition, the costs of a credit transaction are much higher in Western states: for example, the costs associated with credit brokers are zero in Romania, where no commissions are charged, while in western Europe can reach additional costs of tens of thousands of euros, taking into account commissions, taxes and insurance, all being calculated at at least the local properties –”, Commented Alexandru Rădulescu, Managing Partner SVN Romania | Credit & Financial Solutions, exclusive partner of Mortgage.ro.
As can be seen, in Romania are the lowest prices of buildings, of only 92,500 euros, compared to over 150,000 euros in Athens and Budapest, 195,000 euros in Warsaw, 200,000 euros in Rome, 210,000 euros in Madrid, 280,000 euros in Berlin. The most expensive two -room apartments are in London – 495,000 euros and in Paris – 525,000 euros.
Rates are lower in Rome and Berlin
The value of the rate indicator/salary registered in Bucharest is higher compared to that of Berlin, where a level of 39%is registered, and with the one in Rome and Madrid, where the calculated indicator has a value of about 41%. Thus, even if the mortgage interest in the mentioned states are lower even by two percent compared to those in Romania, the values of the rate / salary report do not register so significant. At the same time, the Mortgage.ro indicator has a much higher value in London, 65%, or in Paris, of 85%.
The analysis was taken into account the purchase of an apartment with two Mass Market rooms, with a usable area of 50 square meters, completed for at least 30 years and located outside the central and semi-central areas of several capitals in the European Union. Also, a mortgage loan was taken into account for a period of 25 years, with an advance of 15% and with a fixed interest in the first five years, without including the associated costs, such as commissions, notarial taxes or insurance. In order to establish the interest, the mortgage loans with fixed interest from the first three banks of each analyzed state were taken into account.
In 2024, a total of mortgage loans worth 9.2 billion euros were granted at national level according to the data of the National Bank of Romania, increasing by 42% compared to 2023, including refinancing, conversions, transfers and restructuring. The number of houses and apartments sold in 2024 at national level increased by 6.6% compared to 2023, according to the statistics of the National Agency for Cadastre and Real Estate Advertising, while in Bucharest-Ilfov were sold by 7.6% more homes in 2024.
