Mortgage Market in Romania Projected to Surpass EUR 5 Billion by 2025, Primarily Propelled by Bucharest Region
The mortgage market in Romania is poised to break new grounds, with Bucharest and its vicinity, Ilfov county, anticipated to account for over a third of all mortgage loans granted in 2025. This prediction emerges from a joint report by online broker Ipotecare.ro and mortgage lender SVN Credit Romania, suggesting that the national mortgage market could surpass the EUR 5 billion threshold.
According to the report's estimates, approximately 76,000 new mortgage loans could be sanctioned this year, excluding refinancings, restructurings, conversions, and credit transfers. This surge in mortgage-backed transactions might comprise 45% of residential real estate deals in Romania, while cash transactions could make up the remaining 55%.
Beyond Bucharest, only two other regions are projected to attract over 10% of the national mortgage activity. The Banat region, primarily consisting of Timis and Arad counties, is anticipated to account for around 12.7% of the new mortgages. The Crisana-Maramures region, which encompasses Cluj, Bihor, and Baia Mare, follows closely with an estimated 10% market share.
Alexandru Rădulescu, managing partner of SVN Romania | Credit & Financial Solutions, the exclusive partner of Ipotecare.ro, noted, "The year 2025 presents itself as the ideal period for the Romanian mortgage market, with a promising new record for loans granted for residential transactions. The decline in fixed interest rates and increased revenue serve as the prime explanations for this growth."
Rădulescu further observed a reduction in the gap between Bucharest and other regions, with these regions observing an accelerated development, particularly Timisoara, Cluj-Oradea, Sibiu-Brasov, and Iasi-Suceva-Bacau as the key drivers for the market.
Mortgage activity in central Transylvania and Moldova is also projected to reach around 10% each, while Oltenia, including counties like Dolj and Gorj, will see the lowest volume, approximately 5,000 mortgages granted.
The typical mortgage loan in Romania stands at around EUR 65,700. In the first quarter of 2025 alone, the total value of mortgage loans reached EUR 2.75 billion - up 46% compared to the same period last year, as per data from the National Bank of Romania. However, national home sales recorded a near 5% decline year-over-year during the same timeframe, according to the National Agency for Cadastre and Land Registration.
SVN Romania facilitated EUR 160 million worth of mortgage loans in 2024. The company operates four offices in Bucharest and 14 additional branches across the country, including in cities such as Cluj-Napoca, Constanta, Iasi, and Timisoara.
Ipotecare.ro offers fully online mortgage brokerage services, employing proprietary algorithms to customize financing solutions for individual clients.
[Population density and economic activity in these regions contribute significantly to the high demand for housing and financial services, making Bucharest and Ilfov highly relevant in the context of the mortgage market.]
Investing in real-estate might be a profitable venture in Romania, as the mortgage market is forecasted to surpass EUR 5 billion by 2025, with Bucharest and its vicinity accounting for over a third of all mortgage loans. Additionally, approximately 45% of residential real-estate deals could be mortgage-backed transactions, with finances playing a significant role in the housing market, especially in regions with high population density and economic activity.
