96% of citizens in Romania are homeowners. It is the biggest figure in all the countries in the European Union (EU).
“The evolution (of prices – e.n.) in Romania is relatively less alert compared to other countries in the region such as the Czech Republic and Hungary, where prices grew by more than 10 per cent,”
says Florin Dragu who is the Head of the department for Monitorization of systematic risks of the National Bank of Romania.
Romania’s 96% Homeownership Rate
Though the quality of the assets is below the EU average, Romania has a 96% homeownership rate. Romanian homes also have the highest indicator of overcrowding. The country with a total area of 238,387 sq km has 96% population living with a personal house. It has an approx of 20 million residents.
How Did This Happen?
The communist rule in Romania ended in 1990. By the time the rule was put to an end, the government was owning 70% of the apartments in the country. The government started selling the apartments in its possession to a lot of frenzied buyers. The reduction in the value of the currency at the time made it easier and also the prize of the property was generally low which made them buy houses at low prices.
Houses For The Price Of A Colour TV
People were getting houses for the same price as of a Colour TV in 1991. Due to such reasons, people understood buying places is better than renting or leasing the houses and apartments.
The country is in borders with Ukraine in the north, Bulgaria in the south, Moldova in the east and Hungary in the west. People also started getting loans on just a 5% Advance payment on the government plans which hugely benefited the citizens of Romania.
What do you think about this? Unlike Romania, buying homes or apartments in our country isn’t very easy. Especially in metropolitan cities where the prices skyrocket to huge numbers. Let us know your thoughts about this in the comments below. Not all places are like Romania. Check out this list of the most expensive places to live in the world, here.