Housing in Romania remains relatively affordable, given that in most counties across the country, earnings from less than two months of work can cover the cost of one square metre of property, according to calculations by a real estate website.

The capital has the widest range of flats and houses for sale, but also rising prices. 'The earnings of Bucharest residents, which have followed an upward trend over time and exceed those of other Romanians, largely offset the price increases, keeping affordability at a favourable level,' Imobiliare.ro said in a press release.

With an affordability index of 0.66, Bucharest has a complex residential market, with significant differences in terms of quality, age and asking prices, even from one neighbourhood to another. Bucharest is home both to one of the cheapest areas among Romania's major cities for those looking to become homeowners and to areas where record prices exceed even those seen in Cluj-Napoca.

Since the beginning of 2024, flats and houses have increased in value by 37% locally, reaching an average of 2,125 euro per square metre in April, according to data from the real estate company. Net salaries earned by employees of companies headquartered in the capital are the highest in the country, averaging close to 1,400 euro per month, according to data from the National Institute of Statistics quoted in the press release.

Ilfov County has an affordability index of 0.69 and offers buyers in the area more spacious housing alternatives, often at considerably lower costs than those in the capital. The average asking price for homes listed for sale, at 1,596 euro per square metre, remains below that of the Bucharest market. Even the more expensive suburban areas largely give buyers the opportunity to obtain more space for the same budget as in Bucharest or even to move from apartment living to a house with a garden. The downside, however, is the time spent commuting to and from work each day, the source said.

Timis County, with an affordability index of 0.66, rivals Bucharest in terms of affordability, while Sibiu has a residential market that is attractive both to buyers and investors.

Counties encompassing some of Romania's largest urban centres - Brasov, Iasi and Constanta - remain broadly on an equal footing.

Cluj and Dolj have the lowest levels of affordability when it comes to buying a home, although there are significant differences both in terms of salaries and the evolution of flat and house prices.

Counties such as Caras-Severin and Harghita have recently benefited from significant private-sector investment. Incomes have risen, but housing prices remain among the lowest in the country.

'With one of the highest homeownership rates in Europe, housing in Romania remains affordable, although there are major differences from one region to another. While Timisoara and Bucharest are competing for the title of the most affordable major city in the country, with the caveat that in Bucharest the wide range of properties available and the excess supply in the lower-priced segment make a major contribution to the city's average price, Cluj-Napoca and Craiova share the status of the least affordable cities on the real estate market. Nevertheless, nationally, the most affordable counties remain those where the housing stock consists predominantly of older properties and where, overall, market activity is lower,' Daniel Crainic, marketing director at Imobiliare.ro, is quoted in the release as saying.

The Affordability Index was calculated using National Institute of Statistics data on average monthly net earnings, converted from lei into euro, together with average asking prices for flats and houses in the country's 41 counties and Bucharest, based on listings published on the specialist platform. AGERPRES (RO - writing by: Andreea Marinescu; EN - writing by: Adina Panaitescu)