Thus, the mortgage balance reached a value of €21.7 billion at the end of the third quarter of 2024, up 2% compared to the level registered at the end of 2023, according to the data of the National Bank of Romania. Mortgage loans thus reached a share of 58% of the total loans in payment in Romania, compared to a share of about 37.5% held by consumer loans.
The mortgage segment registered thus a significant increase in recent years, the current mortgage balance being almost four times bigger compared to 2008's level, when the mortgage balance had a value of only €5.7 billion.
The share held by active mortgage loans in the Romanian gross domestic has also increased significantly, from a share of 3.9% held at the end of 2008, to an estimated level of 6.7% at the end of this year. On the other hand, the Romanian mortgage market is still small, considering that the mortgage balance has an average share of about 40% of GDP at a European level.
”Continuous economic development has led to a need for new, more efficient and more spacious homes. And a result is of the improvement in living conditions is the change in the structure of total credit balance, which in the last 15 years experienced a radical transformation, with mortgage loans now holding the majority. Romanian mortgage market still has a huge growth potential, having the prerequisites for a further doubling in the next decade, especially considering that the mortgage markets in Western Europe are over 10 times larger than the local one,” commented Alexandru Radulescu, managing partner SVN Romania | Credit & Financial Solutions.
Thus, the local mortgage market has evolved not only quantitatively, but also qualitatively. In 2008, mortgage loans had a share of only 21% of all credits in payment, 79% being represented by consumer loans – and an overwhelming percentage of 92% were represented by mortgage loans in foreign currency. Now, mortgage loans held a share of 58% of the total loans balance in payment, while foreign currency loans have a share of only 12%, according to the analysis issued by Ipotecare.ro and SVN Credit Romania.
On the other hand, the local consumer loans segment registered a decrease compared to 2008, when the total consumer loans balance was of €21.3 billion, compared to €15.7 billion at the end of September this year. Nevertheless, 2024 was a good year for the consumer loans segment, the total balance increasing by €2 billion in the first nine months.
Ipotecare.ro is an exclusively online broker, which uses multiple algorithms for generating the most optimal financing option for each specific situation. SVN Romania | Credit & Financial Solutions is one of the most important mortgage brokers in Romania, with a volume of €91 million mortgages brokered in 2023. The company has four offices in Bucharest and 14 in the country, in Arad, Bacau, Brasov, Calarasi, Cluj – Napoca, Constanta, Craiova, Iasi, Oradea, Ploiesti, Ramnicu Valcea, Sibiu, Timisoara and Targoviste.
