The intention to purchase a home in the next 12 months is close to the levels from the 2006-2008 period, according to a recent Colliers analysis based on Eurostat data for the Romanian real estate market.

This shows a significant resurgence of public interest in residential properties, similar to the period before the global financial crisis.

The residential market started 2024 strongly, with an 18% increase in the number of apartment transactions in Bucharest in the first quarter compared to the same period last year, while the rest of the country recorded slightly higher increases of 19%.

Even though the residential market has become less accessible, especially for those dependent on bank financing, and the number of transactions has decreased, Romanians' interest in real estate purchases has remained constant, even under more challenging economic conditions.

This indicates sustained demand for real estate, anchored in the cultural inclination of Romanians to buy a home.

Eurostat recently updated Romania's confidence indices. Data on the intention to buy a home in the next 12 months shows values almost as high as the peaks from 2006-2008 and are the highest recorded for Romania since 2001.

Between 2006 and 2008, Romania experienced a real estate boom. Joining the European Union in 2007 brought a large influx of capital and investment, stimulating the real estate market.

At that time, banks offered mortgages with low interest rates and favorable conditions, making financing more accessible to many buyers. Additionally, rapid GDP growth increased consumer confidence, leading to higher demand for homes.

After 2008, the global financial crisis severely impacted the Romanian real estate market. The collapse of the financial market caused a severe economic recession, which reduced the intention to buy homes.

Romania's economy saw a significant decline, and the unemployment rate increased, diminishing purchasing power and interest in real estate acquisitions. Moreover, banks became much stricter in granting loans, thus limiting access to financing for potential buyers.

Between 2011 and 2014, Romania's economy began to recover, but slowly. The intention to purchase homes remained below the historical average, reflecting a gradual economic recovery. Home prices stabilized, and confidence in the real estate market began to grow gradually. Steady wage growth improved purchasing power.

From 2013 to 2017, Romania's GDP grew steadily, boosting consumer confidence and the intention to buy homes.

Government programs, such as "Prima Casă," helped young people and first-time homebuyers obtain loans more easily. Low interest rates made mortgages more accessible, stimulating the real estate market.

Between 2017 and 2020, the Romanian real estate market was very active, with rapid increases and temporary decreases influenced by various economic events, temporary policies, and legislative changes.

The COVID-19 pandemic had a significant impact on the economy and the real estate market. Initially, the uncertainty caused by the pandemic reduced interest in buying homes, but this was followed by a strong recovery due to economic stimulus policies.

Social distancing and remote work changed consumer priorities, increasing demand for larger homes or homes in less crowded areas. This increase in demand, combined with limited supply, led to rising home prices.