Romania ranks fourth in the top European countries with the cheapest housing, after Turkey, Bosnia and Herzegovina and Albania, with an average price of 1,676 euros/sqm in 2024, up 11.5% compared to the level recorded in 2023, of 1,504 euros/sqm, reveals a specialized study by Deloitte, published on Monday.

At the opposite pole, with the most expensive homes is Luxembourg (reintroduced into the study after a few years of hiatus), with an average of 8,760 euros/sq m in 2024.

The Deloitte Property Index 2025 study was conducted based on data from major cities in 28 countries (21 of which are in the European Union). Overall, 18 of the 28 countries analyzed recorded increases in average house prices, the most significant being in Poland (+19.3%) and Albania (+16.5%), while notable decreases were recorded in Turkey (-12%), Luxembourg (-3.4%) and the Netherlands (-2.3%).

Among the EU member states analyzed in the study, high prices are also recorded in Austria (5,053 euros/sqm), Portugal (5,049 euros/sqm), Finland (4,889 euros/sqm) and Germany (4,800 euros/sqm), while prices below 2,000 euros/sqm are only found in Greece (1,792 euros/sqm) and Romania, with the mention that there is no data on the national average for Bulgaria and Ireland.

‘Residential property prices in Europe continue to reflect a complex interplay between constraints on the supply of new homes, namely rising construction costs, tighter financing conditions and more complex regulations, and concerns about the economic outlook and the evolution of living standards in the countries analyzed. Romania is among the countries where prices increased in 2024, amid high demand and a shortage of new homes, and the trend is maintained, at least in the short term, given the increase in VAT to 21% for new homes (including those benefiting from a reduced rate) and uncertainties regarding urban planning rules, mainly in Bucharest. On the other hand, the resurgence of inflation keeps financing costs high, making mortgage loans, which have largely supported the market in 2024’, said Irina Dimitriu, Partner Reff & Asociatii | Deloitte Legal.

Luxembourg also dominates the ranking among European cities, with an average price of 11,074 euros/sqm in the capital, while Munich is in second place (10,800 euros/sqm) and Paris in third place (10,760 euros/sqm).

In Romania, the highest prices are recorded in Cluj-Napoca, respectively 2,770 euros/sqm and Brașov (1,897 euros/sqm), while Bucharest ranks third, with 1,757 euros/sqm.

The study’s authors emphasize that Romania is among the European states where the most expensive city is not the capital, along with Germany, where Munich ranks first with the most expensive homes, Italy with Milan, and Spain with Barcelona.

The ranking is similar on the rental market. Thus, Luxembourg City is in first place, according to available data analyzed by the Deloitte study, with an average monthly rent of 43.4 euros/sq m.

In second place is Paris, with an average rent of 32 euros/sqm, followed by Dublin, with 31.7 euros/sqm.

Another 15 cities in the analyzed countries have rents in the range of 20-29.9 euros/sqm (including Barcelona – 29.9 euros/sqm, Oslo – 27.3 euros/sqm, Madrid – 27.1 euros/sqm and Amsterdam 26.3 euros/sqm).

Among the cities in the EU states analyzed, the cheapest in terms of rent are Plovdiv, Varna and Sofia in Bulgaria (between 5.7 and 8 euros/sqm), and Patra in Greece (euro/sqm).

In Romania, Bucharest and Cluj-Napoca are tied, with the highest rents among the cities analyzed, at 10.3 euros/sqm on average per month, both increasing compared to the previous year, followed by Brasov, where tenants pay an average of 9.2 euros/sqm per month (similar to 2023).

‘The limited supply in the real estate market is also reflected in the increasingly high value of rents, especially in large cities, with development potential above the national average. These areas supported the market also from a transaction perspective, last year, but also in the first part of 2025, when activity also intensified before the entry into force of the new VAT rate for new homes. However, a revival of residential construction is needed, after the decrease of over 20% last year, to ensure the renewal of the housing stock in Romania and, implicitly, to improve the living conditions for the population,’ said Marius Vasilescu, Advisory Partner, Deloitte Romania.

The 14th edition of the Deloitte Property Index study analyzes the evolution of the residential real estate market in 28 countries and 77 cities in 2024. All prices included in the analysis are converted into euros, to obtain comparable results.

Deloitte provides global audit, tax and legal advisory, consulting, financial advisory and risk management services. With a history spanning over 175 years, Deloitte covers over 150 countries and territories.

Deloitte Romania offers, in cooperation with Reff & Asociatii | Deloitte Legal, audit services, tax consulting, legal services, consulting and risk management, financial consulting, service solutions and technology consulting, as well as other adjacent services, through 3,200 professionals.AGERPRES (RO – writing by: Oana Tilica, editing by: Mariana Nica; EN – writing by: Catalin Cristian Trandafir)