Romania's house prices fell by 2.19% y-o-y in Q1 2019

The average selling price of apartments in Romania fell by 2.19% during the year to Q1 2019, in contrast to a 4.71% growth in a year earlier, amidst slowing demand. In fact, it was the biggest y-o-y decline since Q2 2014. In a quarterly basis, Romanian house prices dropped 3.5% during the latest quarter.

House price growth averaged 8.7% annually from 2015 to 2017 before slowing to 3.1% in 2018. Romania's strong performance over the past four years is a rebound from previous dramatic falls. House prices plunged by 24.22% in 2009, 22.08% in 2010, 6.99% in 2011, 5.96% in 2012, 10.43% in 2013, and 1.59% in 2014. It was only in 2015 that the housing market began to recover. 

Demand falling, but construction continues to rise

In Q1 2019, the demand for residential dwellings (which include both houses and apartments) in Romania’s largest regional centres fell by 20% from a year earlier, according to real estate intelligence platform Analize Imobiliare. On the other hand, residential construction activity remains strong. In 2018, the number and area of residential building permits in Romania rose by 2.6% and 9.5%, respectively, according to the National Institute of Statistics (INS). 

Rents, rental yields: good yields at 6.07%

Bucharest apartment costs are low, at around €1,591 per sq. m.

Romania: typical city centre apartment buying price, monthly rent (120 sq. m)
	Buying price	Rate per month	Yield
Bucharest	€ 190,920	€ 966	6.07%

Recent news: Romania’s economy remains robust in Q1 2019, registering a real GDP growth rate of 5% year-on-year and 1.3% quarter-on-quarter – making it one of the three fastest growing economies in the EU, according to the INS. The economy is projected to expand by a modest 3.3% this year, from expansions of 4.1% in 2018 and 7% in 2017, according to the European Commission (EC).