Romanians buy homes back in their home country

Summary

The Romanian diaspora consists of nearly 6 million Romanians living in countries such as the UK, Germany, Belgium, and Italy. The number is increasing, but they still want to return to Romania at some point.

Maybe that's your case too.

Even if most Romanians still leave for better living conditions, some reasons have changed with the new generations. Political instability is a less determining factor; many migrate abroad for more educational and career opportunities.

Romanians are changing where they move to. Spain and Italy used to be the top choices, but now they prefer the UK, Benelux countries like Belgium, Netherlands, Luxembourg, or Nordic countries like Sweden, Denmark, and Norway.

• 90% of those interviewed plan to buy a property in the next 2 years
• 46.9% want to relocate back to Romania
• 39% want to move when they retire
• 20.3% are interested in buying a holiday home in the mountains or by the sea
• 17.5% want to rent the property

Who wants to buy properties in Romania?

Besides construction (34.7%), services (31.6%), and healthcare (11.2%), the work field of those wanting to buy a property in Romania in the coming years includes technology and IT, and banking finance.

Those working in construction and services, as well as those in IT or the financial sector, primarily reside in the UK and Germany. Besides the UK, Romanians from the IT and financial sectors live in countries like Denmark, Austria, the Netherlands, and Switzerland.

Even though most have been living abroad for over 6 years, 87.2% wish to return to the country for family and friends or to build a business. Romania is undergoing economic growth, and Romanians see many opportunities there.

A property in Romania is an investment opportunity

Owning a property in Romania is very important for 57.7% of Romanians abroad. Another 38.5% consider it important, while 3.1% are indifferent, and for 1%, it's not important at all.

58.2% plan to buy a property in Romania next year, while 32.1% plan a purchase in the next 2 years.

Of these, 46.9% wish to buy a property for relocation, 39% plan to move after retirement, 20.3% want to buy a vacation home, and 17.5% plan to rent the property out. Among the preferred cities for property purchase are Bucharest, Brasov, Timisoara, and Iasi.

6.6% have already purchased a property, either to move back to Romania or to rent it out.

Besides city and proximity to schools, hospitals, and public transport, Romanians looking to buy a property in the next 1-2 years consider the economic growth potential, the reduced market price, and the rental potential.

Is it easy to access a mortgage with income from abroad?

When it comes to obtaining a mortgage using income from abroad, Romanians face challenges, especially in collecting the necessary documents.

The requirements imposed by lenders are stringent, and the translation and legalization of documents complicate the process and add costs. Similarly, trips to the bank in Romania add to the complexity and expense.

Is there a simpler way to get a mortgage to buy a house?

The mortgage application process can become frustrating when you have to prepare and send documents to each bank from which you want to receive offers. A solution worth considering is Homevest, a digital service that accelerates the mortgage application process with income from abroad.

Romanians abroad can consolidate the necessary documents directly in their Homevest account and then send them to banks in a single step. This saves customers time and allows them to request bank offers remotely.

With Homevest, the mortgage application process is fast, simple, and free

The study was carried out between May and June 2023 and was sent to 2100 Romanians who registered on the Homevest platform. Of these, approximately 200 responded and expressed their interest in buying a property in Romania within the next 2 years.
Homevest initiated this study to understand the reasons why Romanians are interested in buying a property in the country, and the challenges encountered in accessing a mortgage loan or in managing payments with income from abroad.

In the last 3 months, the Homevest platform recorded over 1900 requests for eligibility verification. Out of these, 47% were disqualified because they did not meet the specific criteria set by banks.

Out of a total of over 1000 eligible requests received and processed, 284 clients turned to Homevest services for advice or mortgage loan requests.

Of these, 95 received at least one in-principle agreement (ESIS), and 38 received pre-approval from a bank.

The partnership with Imobiliare.ro Finance facilitates Homevest's collaboration with banks in Romania that offer mortgage loans to Romanians abroad.