BUCHAREST — Romania’s major cities are witnessing a dramatic surge in rent prices, with tenants now paying, on average, 15% more than in the past. This shift, as analyzed by the real estate platform Storia.ro, is attributed to high interest rates on real estate loans, prompting many Romanians to opt for renting over buying.
Historically, Romania’s real estate market was dominated by home sales. However, the current economic landscape has led to a significant pivot towards rentals. This trend is particularly pronounced in Bucharest, the nation’s capital, where rents in the central Sector 1 have skyrocketed by 65% compared to the more affordable Sector 4.
The shift towards renting is not just a fleeting phenomenon. In September, rental transactions increased by 8% year-on-year, with contracts being finalized at an accelerated pace. This suggests a strong and sustained demand for rental properties.
Răzvan Ceapa, Head of Operations at Storia.ro, highlighted the coastal city of Constanța as a prime example of this trend. Rental prices there have seen substantial year-on-year increases across all apartment categories. Factors such as the work-from-home trend, a desire for nature-centric living post-pandemic, and Constanța’s status as a major university hub are contributing to this demand.
Bucharest’s rental landscape offers a microcosm of the national trend. In September, three-room apartments in the capital saw a 20% year-on-year increase, with rents averaging €680 per month. Two-room apartments went up by 15%, averaging €511, while studio apartments saw a 12% hike, averaging €336.
Other major cities, such as Timișoara, Cluj-Napoca, Brașov, and Sibiu, have also experienced rent fluctuations, with some cities seeing month-on-month stagnation, while others witnessed significant year-on-year increases.
Source/s: Evenimentul Zilei
Image source: Original illustration
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