House prices in Romania "have risen faster than the EU average"

House prices have continued to rise in Romania at a faster pace than the European Union or euro area average, but the evolution is below that of some countries in the region - says Florin Dragu, head of the NBR's financial stability department.

According to the data presented, growth in the first quarter of the year was 5.5%, while in countries such as Poland the rate was 18% and in Bulgaria 16%.

Florin Dragu also said that the rise in housing prices is also due to higher construction costs, which have risen by 10% in the last year, while the volume in the sector has fallen by 13%. At the same time, demand is growing - the NBR official added.

Florin Dragu: On the demand side we see an upward dynamic, mainly driven by wage developments. The average net wage increased in annual terms by about 13%. We also see a growing interest, as measured by searches for apartments for sale - here, the pace is 14% - and on the transactions side, the number of transactions nationwide has increased by 11%, also in annual terms. What we are also seeing is a concentration of these transactions. About 60% of them were in the six main regional centers.

Translated by: Radu Matei