One Out Of Ten Romanians Plans To Buy A Home By ’10 – Study

One out of ten Romanians estimates they will buy a home in the next three years, a much higher ratio compared to the average registered in central and eastern European states, and the highest ratio in the region, according to a study compiled by lender UniCredit.

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According to the study, which analyzes the banking market in Central and Eastern Europe, 11% of Romania’s population is planning to buy a home by the end of 2010, 9% wish to own a home in the next ten years and 5% in more than ten years.

Throughout Central and Eastern Europe, 6% of the population is thinking of buying a home in the next three years, 7% in ten years and 6% in more than ten years.

Aside from Romania, higher percentages of people wishing to purchase a house in the next three years were registered in Slovakia, Bosnia Herzegovina and Croatia, each with 7%.

By 2010, mortgage loans would grow by some 40% in Romania, according to UniCredit estimations. Data issued by the Romanian central bank indicate that loans for the purchase of homes totaled RON16.6 billion at the end of May (EUR1 = RON3.5794).

The UniCredit study includes data on the evolution of mutual funds.

Thus, by 2010, analysts anticipate for Romania an approximate 30% increase, which is lower than the growth estimated for Bulgaria or Russia.

Also by 2010, UniCredit forecasts an increase of 23% in the number of banking units in Romania, the highest level in the analyzed region. Second and third places are taken by Russia (with a growth of 19%) and Ukraine (18%).

The total number of banking units in the Central and Eastern European states will reach 19,500, up 26.6% against the level registered in 2007.

UniCredit Group will open some one third of these new branches, as the bank intends to focus on organic growth in the next three years.

As for the evolution of loans, UniCredit estimates, for Romania, an average annual increase of 25.3% until 2010, as growth in the retail sector could reach 30.2%, and growth in the corporate sector could reach 18.5%.

On a Central and Eastern European level, the value of loans will see an annual growth of 24.7%, with a 27.7% increase for retail and 23.7% for corporate.

The value of deposits made at banks in Romania will grow until 2010 by 19.6% per year, an advance mainly fueled by the retail segment, where there will be an annual growth of 23.7%. At the end of May, resident deposits cumulated RON137.3 billion.

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