{"id":144480,"date":"2023-05-24T14:00:00","date_gmt":"2023-05-24T11:00:00","guid":{"rendered":"http:\/\/devrri.freshlemon.ro\/news-and-current-affairs\/newsflash\/the-status-of-real-estate-property-in-romania-144480.html"},"modified":"2024-02-19T16:45:00","modified_gmt":"2024-02-19T14:45:00","slug":"the-status-of-real-estate-property-in-romania","status":"publish","type":"post","link":"https:\/\/www.rri.ro\/en\/features-and-reports\/society-today\/the-status-of-real-estate-property-in-romania-id144480.html","title":{"rendered":"The status of real-estate property in Romania"},"content":{"rendered":"<\/p>\n

The information, albeit incomplete, is
\ninteresting with respect to lodgings, as it was revealed by the population
\nCensus carried in 2021. Such pieces of information carve out an image of our
\ncountry caught between two extremes: at the lower end of the scale, a great
\nmany localities are abandoned, especially in the countryside, where the houses outnumber
\nthe inhabitants proper, while at the upper end of the scale we have the urban, extremely
\ncrowded areas, and where we have fewer lodgings as compared to the number of citizens.
\nConcurrently, even though Romania has probably the greatest number of real estate
\nproperty owners across Europe, it fares poorly with the respect to the quality of
\nlodging. The concentration of the population in the big cities and on their outskirts
\ncan be explained by the employment opportunities, educations and ways of
\nspending the leisure time the urban areas offer to those interested. As for the
\ndepopulation of villages, it can also be explained through the demographic
\ndecline but also through peoples’ migration to regions capable of offering, potentially
\nat least, a better life. Or at least that is the conclusion of the Associate Professor
\nwith the Geography Faculty Bogdan Suditu, who is also the president of Bucharest
\nMunicipality’s Technical Town-Planning Commission.<\/p>\n


\n <\/p>\n

<\/p>\n

It is a trend that has been
\non the rise after 1990 and even more, after 2000. The rural regions lose
\npopulation or the population is ageing, while many villages do not have any
\npopulation at all, any longer. Furthermore, there is this trend of youngsters
\nto migrate to the cities that, on one hand, have employment opportunities and,
\non the other hand, education-related or professional training opportunities. I
\nalso used the data provided by the census and the situation is quite worrying. I
\nshould like to point to the fact that of 3,181 administrative-territorial
\nunits, a mere 77 of them have more than 25,000 inhabitants, which is very
\nlittle. Meaning that 2.4% of the administrative-territorial
\nunits <\/a>have a reported number of inhabitants exceeding 25,000. But I will also
\nhit the other extreme. We have 2,501
\nadministrative-territorial units, that is 78% of Romania’s administrative-territorial
\nunits with less than 5,000 inhabitants. We sometimes have situations where the
\nnumber of employees in the municipality is not greater than the active
\npopulation of those commune. Indeed, we have hit upon two extremes where, on
\none hand, the population is concentrated in the big cities, Bucharest, Constan\u021ba, Timi\u0219oara, Ia\u0219i,
\nCraiova, Cluj and the metropolitan area of those cities is developing, while on
\nthe other hand we have a great many administrative-territorial
\nunits that stand to lose. We have, in Romania, a commune with 88 inhabitants. We’re
\nspeaking about Batrana in Hunedoara County. <\/p>\n


\n <\/p>\n

<\/p>\n

There is nothing
\nnew about the situation reported for 2021; similar facts had also been reported
\nten years ago, at the previous census. For instance, in 2011 they found out 129 villages had zero inhabitants and, following a calculation
\nsystem where, for the reported figure they took into account the overall number
\nof rural localities, the conclusion was that 2,000 villages had less than 100
\ninhabitants. Waiting for the complete data, we presume that in 2021, the phenomenon
\nhas been more intense. What
\ncan be done to improve the condition of the people living in those deserted
\nareas, but also that of those living in the over-crowded neighborhoods? <\/p>\n

<\/p>\n

Bogdan
\nSuditu:<\/p>\n


\n <\/p>\n

<\/p>\n

There
\nis a National Lodging Strategy which was officially approved last year and that
\nis a very good thing. Its targets mainly consider the vulnerable groups and
\nequally the improvement of access mechanisms to a decent lodging, whether we
\nspeak about a rented place or about private property. Obviously, it is a national
\nstrategy focusing on what the Government can do, yet it
\nalso sets the framework for the cooperation with the public local authorities. The scourge of the demographic decline has not
\nhit Romania alone. There are many other countries facing similar problems. The
\nmechanism the Government has come up with, the ensuing strategy, target the improvement
\nof mechanisms, so much so that, on one hand, in the big cities and in the
\ncrowded areas, the lodgings stock should develop, while, on the other hand, it
\nis obvious that lodgings can also be built in the rural regions, but there we
\nstill need to see for whom exactly that can be implemented. If Romania draws population,
\nor migrants, they’re highly unlikely to head for the rural regions. So what can
\nwe do? We need to improve, meaning we need to use the existing resources more
\nefficiently. For instance, instead of having five schools in a rural area hit
\nby depopulation, one such school will just do, a school with good teachers,
\nwhere children from remote villages can be fetched with a school bus made
\navailable by the town hall. It is one of the solutions that can be implemented and
\nit really is implemented, in some cases, so that people’s living standards can
\nbe improved and they do not have to leave any more. <\/p>\n


\n <\/p>\n

<\/p>\n

As for overcrowding, in
\n2020, 45% of Romanians lived in overcrowded lodgings,
\nwith the reported such percentage being the highest in the EU. It is, obviously,
\nan average percentage, Bogdan Suditu explained. He went on to say the
\nphenomenon is typical for the big cities, but also for the smaller ones. It
\nmainly takes into account the stock of lodgings built during the communist era
\nand where, as we speak, lodgers of several generations bundle in. Bodgan Suditu:<\/span><\/p>\n


\n <\/p>\n

<\/p>\n

There are
\nstill very many people, in Romania, who are very close to retirement or who have
\njust retired, who still live in the apartment they moved into 30-40 years ago, where they raised their children, but the latter
\nare gone, while the elderly stayed. So such a situation is a reality of the big
\ncities and we should be concerned about that, we need to find solutions
\ntailored to the new circumstances, as the elderly inhabiting such very big lodgings,
\nthat does not mean they have a better living standard, since the maintenance
\ncosts for such lodgings are very high. And obviously, for some, they have a
\nlarge and fine lodging, yet it is very costly as compared to a retired person’s
\nincomes. <\/p>\n


\n <\/p>\n

<\/p>\n

Paradoxically, Romania
\nis also the European country with a great number of real estate property owners, the Romanians
\nopting for buying their own house or flat rather than paying a rent for their
\nlodging. But what are the consequences of that? Bogdan
\nSuditu attempts an answer:<\/span><\/p>\n


\n <\/p>\n

<\/p>\n

We become owners at a very,
\nvery high cost. The idea of ownership and the safety ownership brings with it, that
\nis a very good thing. Unfortunately, the idea of owning a lodging, apart from
\nthe costs we’ve spoken about, it comes with very many barriers related to mobility. The moment you purchased the apartment on loan, it is all too clear you are not
\ngoing to move out very easily, even if you may find out after a month, or a year,
\nthat your neighborhood falls short of certain utilities, After one, two or
\nthree years, when you have children and you find out there is no nursery school
\nin the neighborhood you moved into, it is going to be pretty hard, since you
\ncontracted a real estate loan and therefore you have no choice other than living in
\na neighborhood on the outskirts of
\nBucharest, Cluj or Iasi, it will be difficult for you to find someone else who
\nis willing to buy it so you can find a lodging which is closer to the nursery
\nschool or closer to a park and suchlike. <\/p>\n


\n <\/p>\n

<\/p>\n

The need for safety provided by having a
\nproperty of your own, that need is still great for the Romanians. Yet the stock
\nis very limited of the built lodgings if such a need is to be catered for, a
\nneed which sometimes is in contradistinction with another one: the need for
\nmobility. <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Being able to afford a place to live in Romania: landlord or tenant?<\/p>\n","protected":false},"author":136,"featured_media":143844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42997],"tags":[30250,43929,34602,43931,43928,43930],"coauthors":[],"class_list":["post-144480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society-today","tag-loan","tag-lodging","tag-mobility","tag-outskirts","tag-ownership","tag-rent"],"acf":[],"yoast_head":"\nThe status of real-estate property in Romania - Radio Romania International<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rri.ro\/en\/features-and-reports\/society-today\/the-status-of-real-estate-property-in-romania-id144480.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The status of real-estate property in Romania - 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