Bucharest, Ilfov and Timis, the regions with most mortgage loans granted in Romania in 2024

Bucharest, Ilfov and Timis are the top three regions with the most tabulated mortgages in 2024 in Romania, followed by Iasi and Constanta, according to an analysis released by online broker Ipotecare.ro and financial consultant and mortgage lending company SVN Credit Romania, quoted by Business Review.

Bucharest, Ilfov and Timis are the top three regions with the most tabulated mortgages in 2024 in Romania, followed by Iasi and Constanta, according to an analysis released by online broker Ipotecare.ro and financial consultant and mortgage lending company SVN Credit Romania, quoted by Business Review.

About 86,600 mortgages were tabulated last year in Romania, up 26.5% to 2023’s level. The biggest annual increase, of 107%, was registered in Iasi. However, this was determined by the delayed tabulation of some presales contracts closed in previous years. Significant annual increases in tabulated mortgages were also registered in Bihor, of 65%, in Arges, of 33.6%, and Brasov, where 33% more mortgages were issued last year.

Compared to the total number of home sales concluded last year in Romania, tabulated mortgages hold a share of 51%, according to SVN’s calculations based on statistics published by the National Agency for Cadastre and Land Registration. However, it should be noted that the total number of tabulated mortgages also include refinancings, reconversions and restructurings, as well as personal loans with mortgages. Thus, cash transactions still hold the majority of home sales closed in Romania.

”The mortgage market returned to an upward trend since the middle of the last year and we estimate that 2025 will bring an acceleration of the growth rhythm of the mortgage loans granted. A significant part of the financing institutions have already aligned their mortgage offers at a level below 5% / year in the fixed interest rates segment, a level that is attractive for those wishing to finance a home purchase. The mortgage market will continue to develop rapidly in the coming years, especially in the large regional centres of the country, such as Timisoara, Cluj – Napoca, Brasov or Iasi, but also in medium – sized cities”, said Alexandru Radulescu, managing partner SVN Romania | Credit & Financial Solutions.

The next position in the ranking of regions with the most mortgage loans granted in 2024 is occupied by Cluj, with an annual increase rate of 24.7%. The city on the Somes river is only on the six position due to the high level of savings registered in the region, with cash transactions holding thus a large share compared to other regions in the country. Brasov, Sibiu and Bihor occupy the following positions among the regions with the most tabulated mortgages in Romania in 2024, while Arges closes the top 10, according to Ipotecare.ro analysis.

Mortgage loans worth EUR 8.2 billion were granted in total at a national level in the first 11 months of 2024, up 42% compared to the first 11 months of 2023 – please note that this volume also includes refinancing, conversions, transfer and restructurings.

Ipotecare.ro is an exclusively online broker, which uses multiple algorithms for generating the most optimal financing option for each specific situation. SVN Romania | Credit & Financial Solutions is one of the most important mortgage brokers in Romania, with a volume of EUR 160 million mortgages brokered in 2024. The company has four offices in Bucharest and 14 in the country, in Arad, Bacau, Brasov, Calarasi, Cluj – Napoca, Constanta, Craiova, Iasi, Oradea, Ploiesti, Ramnicu Valcea, Sibiu, Timisoara and Targoviste.

The Evolution of Romania’s Real Estate Market: 2020-2024

In the past five years, Romania’s real estate market has experienced constant growth and significant changes. According to analyses published by Imopedia, Hotnews and Digi24, the Romanian real estate sector has been influenced by economic and socio-political factors, directly impacting prices, demand and housing supply.

Price Increases

Between 2020 and 2024, housing prices have consistently risen, with an average annual increase of 5-7%. Bucharest and major cities like Cluj-Napoca, Timișoara and Iași have been most affected by this increase, mainly due to high demand and limited availability of developed land.

Infrastructure Projects

Infrastructure development has also had a major impact on the real estate market. Investments in major projects, such as highways and the modernisation of public transport networks, have increased the attractiveness of certain areas and contributed to the appreciation of property values. Regions developed around major urban centres have benefited the most from these initiatives.

Future Trends

According to analysts, Romania’s real estate market will continue to grow in the coming years, albeit at a more moderate pace. Housing prices are expected to stabilise, and investments in properties will become more attractive due to favourable fiscal measures and advantageous lending policies.

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