Unusually High Demand for Houses in July

The demand for houses in Romania has registered an important increase in July – a month traditionally low on demand in this industry. “The decrease of the real estate prices to a minimum level, the news about the depletion of the funds for the First Home program, the very low interest rates offered by banks and the statements of the Governor of the National Bank of Romania regarding the risk of a new real estate bubble that could lead to prices increase, made the Romanians go out shopping for homes”, shows a press release from the real estate website Imobiliare.net.

The website has registered in July an increased by 20% of the requests on the real estate market. The two-bedroom apartments have Read more

First Home Governmental Program Supports the Residential Market

At the beginning of April, the banks have reached at a portfolio of 111,000 mortgage loans granted through the governmental program First Home, increasing by almost 5,000 loans compared to the level from December last year, according to the data published on the website of the Romanian Govern. The overall value of the financing granted through this program, which started in June 2009, reaches at 4.27 billion euro, which means that the average value of a loan is 38,400 euro. However, the average value has decreased constantly in the five years since the program started, from 41,000 euro in 2009 to 31,000 euro this year. The worst decrease of the average value was registered in 2014, after the program was modified exclusively to financing in lei currency. The mortgage loans in lei are more expensive than those in euro, so the sums that the clients can access are smaller for loans in lei compared to loans in euro. The Govern allocated for this year a guarantees cap of 2 billion lei for First Home loans (including the sums left unused in 2013), of which some three quarters are still available.