Romania Remains Among Europe’s Lower-Cost Markets for Mortgage Home Purchases

Homebuyers in Romania continue to face comparatively modest upfront expenses when purchasing a residential property with mortgage financing, according to a recent market analysis by online broker Ipotecare.ro. The findings place Bucharest among the more affordable European capitals in terms of transaction-related costs, although the exact level varies depending on property value, financing structure and individual service fees.

The study estimates that the minimum additional costs associated with buying a typical one-bedroom apartment in Bucharest amount to roughly 1.6% of the purchase price, equivalent to about €2,500 based on an assumed property value of €107,500. These expenses generally include notary and land registration fees, bank charges related to mortgage origination, property valuation and, where applicable, brokerage services.

By comparison, buyers in many Western and Southern European capitals typically face materially higher entry costs. The analysis indicates that transaction expenses can exceed 5% of the purchase price in cities such as Budapest and Rome, approach 8% in Madrid and surpass 11% in Vienna. In higher-priced markets, this often translates into additional outlays running into tens of thousands of euros.

The relatively moderate cost burden in Romania reflects the structure of the local transaction framework, where large transfer taxes common in several Western European jurisdictions are generally absent for standard residential purchases. Instead, the largest component of buyer expenses in Bucharest is usually the notarial process and related registration fees, while mortgage origination fees and valuation costs tend to remain limited. In many cases, credit brokerage services are offered without direct charges to the borrower.

Laurentiu Bogdan, Managing Partner of Ipotecare.ro, noted that buyers often focus primarily on interest rates and monthly instalments, even though upfront acquisition costs can materially influence affordability at the point of purchase. He added that in markets where transaction taxes are higher, these initial expenses can become a decisive factor in completing a deal.

Independent international benchmarks broadly support the view that Romania sits toward the lower end of the European cost spectrum for residential transactions, typically falling within a low single-digit percentage range of property value. However, specialists caution that cross-country comparisons should be treated carefully, as total costs vary significantly depending on whether the home is new or existing, whether the buyer qualifies for preferential tax treatment and how individual bank fees are structured.

While the precise ranking between cities may shift depending on methodology, the overall picture remains consistent: Romania continues to offer a relatively accessible entry point for homebuyers when measured by transaction costs, reinforcing the country’s position as one of the more affordable residential markets in Europe from an acquisition-cost perspective.