When will the housing prices in Romania and the big change in the New House go down. Nancu (FNGCIMM) comes with excellent news

“We did several analyses. There are two factors here, once the strategic geopolitical factor, let’s not forget, Romania has a border of almost 500 km of war and the appetite of the Romanian or any investor is reduced during this period because it is clear, it’s hard to buy a home when you don’t know what’s happening across the border. Second, housing prices remained quite high. Why? Because they were built in the period after the pandemic or before, even during the pandemic, where, you know very well, the price of construction works, construction materials, tripled, some were even 10 times higher.

Interest rate, the main factor

The third factor which is, shall I say, the main factor, is the interest rate. At a time when we have high interest rates and expensive costs, it is clear that houses will be very difficult to sell. We see what is happening in Poland, it was the highest rate of housing price increase during this period. Now, we currently consumed about 5% in the first month. There are about 300 homes purchased through the New House program. Just like at IMM Invest, we came to make the credit a little cheaper, in the sense that the commissions at the notary have been halved. Second, the administration fee due with the National Guarantee Fund was reduced from 0.3 to 0.15.

Warranty promise

It’s the only program that offers you facilities. One, the lowest down payment – 5%. Two, you have a 50% guarantee for homes up to 50,000, 60% for homes between 70,000 and 140,000 and the value added tax which is the only 9% on the mortgage loan only for homes purchased through Noua Casa for properties up to 120,000 euros. I think that these facilities and, of course, complemented by the fact that aotherwise, the beneficiary of the program can take a guarantee promise, that is, he presents himself at the financial-banking institution, is given a score and has a year and a half to find a home according to the score he obtained. Until now, you know, he had to give an advance, in a month he had to find that apartment.

I also did this in the sense that on longer period we hope housing prices will fall further, and they will only fall when the interest rate will also fall, that is very clear“, said Dumitru Nancu, director of the National Credit Guarantee Fund for Small and Medium Enterprises.

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