Bucharest: Most Affordable Capital for Renters in Eastern Europe

Bucharest is the most accessible capital in the eastern half of Europe for renters, while Romania ranks 13th out of 31 European countries in this regard, according to the latest Storia analysis – the real estate platform launched by OLX.

One of the economic indicators that determine how affordable a certain city is or how affordable a certain country is for living is the rent affordability index, calculated as the ratio of the average rent price to the average salary. Thus, the lower the index value, the more affordable the rents.

In Romania, the average rent for a studio located outside the central areas of the urban environment is currently around 302 euros, according to data reported by the Numbeo platform, which uses both public statistical data and information submitted by users for calculations. At the same time, the average net monthly salary is around 1,040 euros, according to the latest information published by the National Institute of Statistics.

Thus, the rent affordability index in Romania is 0.29, a value that ranks our country in 13th place among the 31 countries included in this analysis: the 27 member states of the European Union plus Great Britain, Norway, Switzerland and Iceland.

Romania is in a favorable position in terms of rent affordability, especially compared to other Central and Eastern European countries. The fact that Bucharest is the most affordable capital in this region, and Romania ranks 13th out of 31 countries analyzed in this ranking, underlines that, although rents have increased significantly in recent years, they still remain at an affordable level compared to average incomes. Although we have witnessed significant rent increases in recent years, the affordability index of 0.29 shows us that the real estate market in Romania is affordable”, said Răzvan Ceapa, Head of Operations Storia & OLX Imobiliare.

Data analyzed at the European level based on average net monthly salaries reported by Eurostat, the statistics office of the European Union, show that the most affordable rents are in Denmark. Even if here the average rent for a studio located in the urban environment, outside the center, is almost double compared to that in Bucharest (537 euros), the affordability index is only 0.15 as a result of the average net salary more than three times higher, almost 3,500 euros.
Incidentally, this is the explanation why the most affordable rents are especially in the northern part of Europe: Finland (affordability index 0.21), Norway (0.21) and Sweden (0.22) are at the top 10. Also here we find at the same time some of the Western European states with the largest economies in the Union, including Germany (0.22), Austria (0.22) or France (0.23).
On the other hand, Romania has an accessibility index close to countries such as Greece (0.27), Italy (0.28), Latvia (0.28) or Estonia (0.30), but here too it can be seen that both salaries, and the rents are higher. On the other hand, the Netherlands is a special case: it has the same affordability index as Romania, but this is explained by rents more than 3 times higher, as a result of the low housing stock in this state.
At the same time, it is noted that in Romania rents are more affordable than in many other European states around our country or in Central Europe. Thus, Romania has more affordable rents than Hungary (0.35) or Bulgaria (0.40), but also compared to Lithuania (0.37), Slovenia (0.39), the Czech Republic (0.43), Poland (0 .46) or Slovakia (0.47).
Last but not least, Romania has more affordable rents than Great Britain (0.36), Spain (0.37) and, above all, compared to Portugal (0.51), which otherwise ranks last in Europe in this respect chapter.
Bucharest: 9th place in capital cities and the most affordable rents in Eastern Europe
If we analyze the rent affordability index for the capitals of the 31 countries analyzed, it can be seen that Bucharest is in position 9 out of 31. Thus, with an average net salary of just over 1,200 euros per month and an average rent of 359 euros, the city of Bucharest has a rent affordability index of 0.3. This index is identical to that recorded by Copenhagen, where both average net wages and rents are about 3.2 times higher, according to data provided by the Numbeo platform.
At European level, the most affordable rents are registered in Bern (affordability index 0.15), Paris (0.22) and Brussels (0.22), especially due to average net salaries of over 4,000 euros per month, while with average rents of around 900 euros. A better index than the one in Bucharest is also registered in Stockholm, Vienna and Luxembourg (all with 0.27) and Riga (0.29).
At the same time, the data show that Bucharest has the most affordable rents in the eastern half of the European continent, and the main explanation is that the level of rents in these capitals is generally more than twice as high as in the capital of Romania, while salaries in these capitals are only about 50% higher.
This category includes, for example, Sofia (0.31) or Budapest (0.42), but also capitals such as Rome (0.37), Bratislava (0.41), Warsaw (0.42), Ljubljana (0 .43), Prague (0.44) or Athens (0.45). Also, as in the case of the country analysis, the most difficult to access rents are in Lisbon (0.76), as the capital of Portugal has average rents of around 950 euros per month and average salaries of around 1,260 euros, with only 4% higher than average salaries in Bucharest.
In Romania, rents have increased by 34% in the last five years
Data compiled by Eurostat shows that rents have risen disproportionately in Europe over the past five years, with the biggest increases reported in countries in the eastern half of the continent.
The largest percentage increase in rent was recorded in Hungary, where rents are 50% higher compared to 2019, and Romania’s neighbors are closely followed by Poland (+47%) and Slovenia (+46%).
With an average increase of almost 34% in the last five years, Romania ranks 6th in this top, being surpassed by the above-mentioned states and Lithuania and Malta, both with increases of almost 38%. At the same time, there are many Central European states where rents have increased between 20% – 30%, and among them are Bulgaria (+27%), the Czech Republic (+26%), Austria (23%) or Belgium (+ 20%). A 20% increase was also reported by Portugal, the European country where rents are the least affordable. Also, most Nordic countries reported increases between 10% – 20%, in the context where rent prices are among the highest here anyway.
On the other hand, data compiled by Eurostat shows that there are 8 states where rents have increased by less than 10% in the last five years. This list includes, for example, Denmark, with an increase of 9%, in the context in which the Nordic country currently has the best accessibility index in Europe.
However, such smaller increases are also reported by four of the largest European economies: Germany (+9%), Spain (+8%), Italy (+7%) and France (+7%). Also in this category we find Switzerland and Luxembourg, which had increases of about 8% in the last 5 years, in the context where rents are among the highest on the continent.
For the 27 member states of the European Union, rents have increased by an average of 11% in the last five years, which means that in Romania rents have increased at a rate three times higher compared to the European average.
Eurostat data on these percentage developments are based on a rent index that had an initial value of 100 in 2015, an index that was later indexed to the average percentage increase in rents in the respective country.
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