By Anna Grybel-Kloc

If we take into account the size of the mortgage market in Romania, choice of products and available rates, we can see that the market is less advanced than other CEE markets analysed in our series.

However, the mortgage industry is growing and developing fast to a large extent stimulated by mortgage brokers active in the country. Their experience, gained from operating in other more developed markets, allows them to encourage and assist local banks to improve their products.

Market is still in infancy

The fundamental indicator defining a mortgage market is the mortgage debt to GDP ratio, which in Romania is only 2.3% (2006) - the lowest level among all CEE countries and members of the EU and far from the EU average of 50%.

The mortgage debt per capita is also the lowest - only €110, compared to €230 in Bulgaria for example.