Romanians’ Real Estate Wealth Reaches Record Level

Romanians’ real estate wealth reaches a record EUR 400 billion, the highest level of the last decade. Meanwhile, Romania has the highest rate of real estate ownership in the European Union, above 90%.

According to the National Bank, the real estate assets of Romanians in 2021 reached approximately EUR 400 billion. However, a high degree of wealth inequality persists.

Romania vs. EU

While real estate assets locally represent a majority power, in terms of financial assets, the share of Romanians represents less than a quarter of total assets, around 24%. There is some local gap compared to the euro area, where financial assets account for about 45% of the population’s wealth.

The real estate properties in Romania exceed 9 million homes

Rising prices have influenced the rise of the Romanian real estate market over time. A significant increase in real estate assets was also recorded in 2008 when the total assets reached 500 billion EUR. Compared to the level of previous years, the real estate wealth of Romanians increased considerably by up to 57.6%.

The National Bank of Romania has shown that the rise in real estate assets indicates the resilience of the real estate market, and this situation is mainly due to the legislation that encourages the holding of real estate assets rather than reinvesting in productive activities. The growth of real estate assets of Romanians was also supported by banks, with mortgage lending rising.

However, some consider that Romania’s market bubble will pop this year. It won’t be the first or last time the real estate market crashes. But, with all this health and financial crisis and the energy prices rising higher than ever, this time, the consequences would last longer for sure.