Demand for the real estate market has dropped.  When housing could be cheaper

Romanians think twice before buying a home. Rising rates, inflation and rising prices make them wait. On the other hand, some builders also stopped work on construction sites.

Due to high interest rates, demand in the real estate market began to decline. Buyers are no longer able to afford the price and are no longer confident that they will be able to pay off a 30-year loan. Andra wanted to buy a studio apartment before the pandemic. Now … she’s not so determined anymore.

Andra Gogota – buyer: I started looking for myself, but due to the problems with the pandemic, I stayed on standby for a while, hoping that from now on I would be able to buy at least one studio. The problems came again, being the war and the growth in real estate. I have no confidence at the moment, being an instability.

For an apartment that costs about 60,000 euros, a 30-year loan would bring the buyer a monthly rate of about 1,230 lei

Specialists do not encourage real estate transactions yet. Not even for those who want to rent the purchased properties.

Zoia Bizău – real estate specialist: I say that, after this stagnation, the prices will decrease, that the number of units sold has already started to decrease and this tells us that there is not much money to invest on the market.

Iancu Guda – director “Money on the move”: Demand is falling, supply is rising, inevitably the price should fall. It’s a correction in fact, because this price is high anyway. From my point of view, it is the worst time to buy real estate because the recovery time of the investment from the rent you can receive is 25 years. It’s huge.

Romanians with low and medium incomes do not consider a real estate investment at the moment

-No, I wouldn’t trust him.

-I don’t think so, I’m staying with my parents and I’m fine.

-It is important not to rent or stay with your parents. In the past, it was also approved for PFAs, at the moment only if you are an employee. It is no longer granted.

However, investors say that prices will not fall.

Sorin Orzac – real estate investor: Banks scared customers a little and people became distrustful, but the need for space still exists. We cannot go cheap, because the cheap would mean a less normal quality.

In Maramureș County, for example, in recent months, house prices have risen by 15% as a result of rising construction prices.

Publisher: AP

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