High House Prices In Romania Limit Access To Mortgage Loans

The price of a two-room apartment in Bucharest currently ranges from EUR100,000 to EUR120,000, while the price amounts to EUR70,000 for the same type of apartment in Romania’s big cities of Timisoara, Iasi, Cluj-Napoca, Brasov and Constanta.

Data were computed on a 70% debt ceiling and zero downpayment, the most permissive conditions of the lending norms approved by Romania’s central bank BNR.

Thus, the monthly installments paid for the acquisition of a two-room apartment in Bucharest range from EUR750 to EUR800, while the same installments reach EUR525 – 550 per month for the same type of apartment in big cities in Romania, other than the capital city Bucharest.

According to the National Forecast Commission, the average net salary will reach RON1,160 in 2008.