According to a recent analysis by Storia, a real estate platform launched by OLX, Bucharest, the vibrant capital of Romania, has been identified as the most affordable capital for renters in Eastern Europe.
Visit Bucharest mentions that the study also ranks Romania 13th out of 31 European countries in terms of rental affordability.
Affordability Metrics
Residents in Bucharest spend approximately 34% of their monthly net income (averaging €1,098.50 after tax) on accommodation. The average rent for a one-bedroom apartment outside the city centre is about €375.15. After paying household bills (€164.57) and lifestyle expenses like dining out, fitness, and travel (€120.69), residents are left with around €438.09 each month in disposable income.
Rankings of the Most Affordable European Capitals
RankCapital CityCountryAffordability Score / 1001BucharestRomania59.692ChisinauMoldova56.403San MarinoSan Marino54.534VilniusLithuania53.685VaduzLiechtenstein53.196WarsawPoland53.107HelsinkiFinland53.008SkopjeNorth Macedonia52.989BudapestHungary52.7510MadridSpain52.03
Rental Market Trends
The residential market in Bucharest has shown resilience despite rising prices in other Romanian cities. The average asking prices in Bucharest have increased slower, remaining below inflation and construction cost increases.
The analysis also highlights a positive economic outlook for Romania. Anticipated wage increases and easing financing conditions are expected to further enhance housing affordability. Bucharest’s average monthly net salary will rise to approximately €1,600 by 2027.
The short-term rental industry in Bucharest is thriving, generating approximately €24 million in the first half of 2024. This represents a significant increase compared to previous years, indicating a robust demand for short-term accommodations.
Rental Yields
Bucharest offers attractive rental yields, averaging around 6.23%. Areas like Titan, Berceni, and Militari stand out, with yields ranging from 7.20% to 8.24% for studio and one-bedroom apartments. In conclusion, Bucharest’s affordability, economic growth, and vibrant rental market make it an attractive destination for renters in Eastern Europe. The city’s competitive prices, promising salary increases, and diverse housing options provide a compelling case for those seeking an affordable lifestyle in the European Union.
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