Rents exceed "First home" instalments

Apartment rents in Bucharest have dropped by around 20% since the beginning of the year, but are higher than the monthly instalments for a loan released through the "First home" programme, according to data from banks and real estate agencies. Thus, the average rent for a two-room apartment in Bucharest in July stood at 423 euros/month, according to AnunturiParticulari.ro, while banking instalments for a 57,000-euro loan granted over a 20-year period through the "First home" programme range between 370 and 400 euros with most banks on the market. "Between rent and a ‘First home’ loan, I would recommend the acquisition. Looking at offers, a studio in a quite nice area in Bucharest costs 40,000 euros and the rent revolves around 250 euros, equal to the instalment. In this case, the risk is of 2,000 euros, the value of the deposit," says Ruxandra Cleciu, a partner with Neocasa real estate consultancy. Apartments of 3 rooms with high-quality finishing are rented out for 500 euros per month, while 2-room apartments range between 300 and 400 euros per month.