Romania ranked fourth among European countries with the cheapest housing in 2024, after Turkey, Bosnia and Herzegovina, and Albania, according to the latest Deloitte Property Index published on Monday, September 1. Despite the overall affordability, the study showed that housing in Cluj-Napoca and Brașov is now more expensive than in Bucharest, while rents in the capital have risen to match those in Cluj.
The report found that the average price per square meter of residential property in Romania climbed to EUR 1,676 in 2024, up 11.5% from EUR 1,504 in 2023.
By contrast, Luxembourg remained the most expensive market, with an average of EUR 8,760 per square meter, followed by Austria, Portugal, Finland, and Germany – all above EUR 4,800 per square meter.
Among EU countries, only Greece (EUR 1,792/sqm) and Romania (EUR 1,676/sqm) recorded prices below EUR 2,000.
At the city level, Luxembourg city tops the ranking with EUR 11,074 per square meter, followed by Munich (EUR 10,800) and Paris (EUR 10,760).
In Romania, Cluj-Napoca leads with EUR 2,770 per square meter, ahead of Brașov (EUR 1,897) and Bucharest (EUR 1,757). This puts Romania in line with countries such as Germany, Italy, and Spain, where the most expensive housing is not found in the capital.
Rents reveal a similar picture. Luxembourg city recorded the highest average rent in Europe at EUR 43.4 per square meter, followed by Paris (EUR 32) and Dublin (EUR 31.7).
In Romania, both Bucharest and Cluj-Napoca averaged EUR 10.3 per square meter in 2024, while Brașov tenants paid EUR 9.2, up from last year.
Deloitte analysts said that housing prices across Europe reflect a mix of tight supply, rising construction costs, and restrictive financing conditions. In Romania, high demand combined with a shortage of new dwellings drove the increase.
“The trend continues, at least in the short term, given the VAT increase to 21% for new dwellings and urban planning uncertainty, mainly in Bucharest,” said Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal.
She noted that inflation has kept financing costs elevated, making mortgages less accessible.
At the same time, construction activity in Romania dropped by more than 20% in 2023, a decline that has further limited housing supply. “A revival of residential constructions is needed […] to ensure the renewal of the housing stock and improve conditions for the population,” said Marius Vasilescu, Advisory Partner at Deloitte Romania.
The 14th edition of the Deloitte Property Index analyzed housing markets in 28 countries and 77 cities. Overall, 18 countries saw prices rise in 2024, with the largest increases in Poland (+19.3%) and Albania (+16.5%), while Turkey (-12%), Luxembourg (-3.4%), and the Netherlands (-2.3%) recorded notable decreases.
irina.marica@romania-insider.com
(Photo source: Mykhailo Polenok/Dreamstime.com)
Leave a Reply