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Romania, Second In European Top Of Transition Countries

Romania ranks second in the European top of transition countries in terms of increase in the prices of dwellings, with an annual average rate of 40% during 2004-2006, way above the nearly 6% increase in gross domestic product per capita, according to a report of the European Bank for Reconstruction and Development, or EBRD.
Romania, Second In European Top Of Transition Countries
09 nov. 2007, 15:22, English
The highest price growth rate, slightly over 40%, was registered in Ukraine, according to the "2007 Transition Report" drawn up by EBRD.
Romania is followed by Latvia, Estonia, Lithuania, Bulgaria, Russia and Armenia, where house prices climbed, during 2004 – 2006, by an annual rate of over 20%, way above the growth rate of gross domestic product per capita.
The report says that mainly the prices of houses located in big cities and regions on the coast boomed. 
The report also shows that Bucharest, Kiev, Riga, Vilnius and Warsaw are way behind other European capital cities in terms of the 2006 price/revenue ratio when it comes to buying a house.
All economies in transition have enjoyed a favorable financial climate in terms of the access to credits. However, high liquidity worldwide, along with a more powerful economic stability in the region, triggered the decrease in interest rates.
For example, in Romania, the annual interest rate for mortgage loans dropped from 41% in 2001 to nearly 11% mid- 2007.