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As we reach mid-2025, property prices in Romania are showing a clear upward trend, with significant growth across major cities.
Romania's residential market has demonstrated remarkable resilience, with average apartment prices reaching EUR 1,710 per square meter nationwide and key urban centers like Bucharest and Cluj-Napoca experiencing even stronger appreciation.
If you want to go deeper, you can check our pack of documents related to the real estate market in Romania, based on reliable facts and data, not opinions or rumors.
Property prices in Romania increased by 14% year-on-year as of early 2025, with Cluj-Napoca maintaining its position as the most expensive market at EUR 3,000 per square meter.
Despite economic headwinds and reduced transaction volumes in early 2025, the fundamental supply-demand imbalance continues to drive prices upward, particularly in major urban centers.
| City | Price per m² (EUR) | Annual Growth (%) |
|---|---|---|
| Cluj-Napoca | 3,000 | 15.7% |
| Bucharest | 1,862 | 15.0% |
| National Average | 1,710 | 14.0% |
| Timișoara | 1,700 | 11.7% |
| Ploiești | 1,159 | 7.3% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What were the exact property price increases in Romania during the past year?
Property prices in Romania have shown robust growth, with national average prices increasing by 14% year-on-year as of June 2025.
The Romanian residential market experienced a particularly strong performance, with the average listed price for apartments reaching EUR 1,710 per square meter, marking a significant increase from EUR 1,500 in the previous year.
Major urban centers outpaced the national average significantly. Cluj-Napoca recorded the highest annual growth at 15.7%, pushing prices to EUR 3,000 per square meter, while Bucharest saw a 15.0% increase, reaching EUR 1,862 per square meter.
According to Eurostat data, Romania's House Price Index increased by 3.9% year-on-year in Q3 2024, closely mirroring the EU average of 3.8%. New dwellings showed stronger price increases at 6.8% year-on-year compared to existing dwellings at 2.4%.
The market's resilience has been notable, with property prices maintaining their upward trajectory despite global economic uncertainties and rising inflation rates.
Where are property prices rising fastest in Romania right now?
Cluj-Napoca continues to lead Romania's property price growth, with prices reaching a historic high of EUR 3,000 per square meter in June 2025.
In Cluj-Napoca, specific apartment complexes have seen dramatic price jumps, with some properties increasing from EUR 2,700 to EUR 3,000 per square meter, and premium complexes rising from EUR 3,500 to EUR 4,000 per square meter.
Bucharest follows closely behind with strong performance across multiple districts. The Centru district commands premium prices at EUR 3,115 per square meter, representing a 19.53% premium above the city average.
Other cities showing significant growth include Iași, which recorded a 38.52% surge in transaction volumes, and Constanța with a 17.84% increase, though these figures reflect activity rather than direct price increases.
Secondary cities like Timișoara are also experiencing steady appreciation, with average prices around EUR 1,700 per square meter and year-on-year growth of 11.7%.
Which property types are experiencing the biggest price surges in 2025?
New build apartments are leading the price surge in Romania, with prices increasing by 6.8% year-on-year compared to just 2.4% for existing dwellings.
Tech-smart, energy-efficient apartments are particularly in demand, catering to young professionals and tech workers in cities like Bucharest and Cluj-Napoca. These properties command premium prices due to their modern amenities and sustainability features.
Properties with outdoor spaces have become highly sought after in the post-pandemic era. Apartments featuring terraces, balconies, or access to gardens are seeing faster price appreciation than standard units.
Larger suburban homes near major cities are experiencing increased interest from families seeking more space. These properties in areas around Bucharest, Cluj-Napoca, and Timișoara are appreciating steadily due to proximity to green spaces and schools.
It's something we develop in our Romania property pack.
What are the latest mortgage rates affecting property purchases?
As of June 2025, Romania's National Bank maintains its policy rate at 6.50%, following a 25 basis point cut in August 2024.
The elevated interest rate environment has made mortgage financing more expensive, with typical mortgage rates ranging between 7-9% annually, depending on the borrower's profile and down payment.
Rising reference rates, particularly ROBOR, have increased borrowing costs significantly above the central bank's policy rate, creating additional pressure on potential buyers.
Despite higher rates, approximately 40% of transactions are still conducted in cash, indicating that many buyers have substantial reserves and are less affected by financing costs.
The tighter lending conditions have contributed to a 9% drop in apartment transactions nationally in early 2025, with Bucharest experiencing a 12% decline, suggesting that affordability is becoming a concern for mortgage-dependent buyers.
What do property price forecasts say about 2026?
Property prices in Romania are expected to continue rising in 2026, though at a potentially slower pace than the rapid growth seen in recent years.
Economic forecasts suggest GDP growth of 2.9% in 2026 according to the European Commission, with the IMF projecting even stronger growth at 3.7%, which should support continued demand for housing.
Inflation is expected to moderate to 3.6% in 2026, down from current levels above 5%, which could ease some pressure on the central bank to maintain high interest rates and improve affordability.
| Economic Indicator | 2025 Forecast | 2026 Forecast |
|---|---|---|
| GDP Growth | 2.5% | 2.9% |
| Inflation Rate | 3.9% | 3.6% |
| Property Price Growth (Est.) | 3-7% | 3-5% |
Supply constraints will likely persist, with completed homes expected to decline further in 2025-2026 due to the 30% drop in building permits from 2021 peaks.
Based on historical patterns and current market dynamics, property prices could increase by 3-5% annually in 2026, assuming economic stability and gradual improvement in financing conditions.
How do current prices compare to five years ago?
Romania's property market has experienced substantial appreciation over the past five years, with prices increasing dramatically across all major cities.
Bucharest property prices have increased by approximately 50% over the past five years, meaning a property worth EUR 1,240 per square meter in 2020 now costs around EUR 1,862 per square meter.
Cluj-Napoca has seen even more dramatic growth, with prices surging by 80% in the same period, rising from approximately EUR 1,667 per square meter to the current EUR 3,000 per square meter.
According to Eurostat data, Romania's home prices have increased by 29.1% over five years, meaning that a villa in Bucharest worth EUR 650,000 five years ago would now be valued at approximately EUR 839,000.
Despite this significant growth, Romania remains one of the most affordable property markets in Central and Eastern Europe, with prices still well below those in Prague (EUR 5,600/m²) or Warsaw (EUR 4,300/m²).
What impact is inflation having on property affordability in June 2025?
Inflation remains elevated at around 5.1% as of December 2024, significantly impacting property affordability for Romanian buyers.
While nominal wages have seen double-digit growth, the combination of high inflation and increased property prices has widened the affordability gap, pushing more Romanians toward renting rather than buying.
The high inflation environment has led to increased construction costs, with developers reporting material cost increases that have contributed to higher prices for new builds.
Access to credit has become more restricted due to inflation concerns, with banks implementing stricter lending criteria and higher interest rates, reducing the pool of qualified buyers.
However, inflation is projected to decline to 3.9% in 2025 and 3.6% in 2026, which should gradually improve affordability conditions and potentially stimulate demand from currently priced-out buyers.
Which neighborhoods in major cities are seeing the biggest price increases?
In Bucharest, the Old Town (Centrul Vechi) and Floreasca neighborhoods are experiencing the strongest price growth due to their blend of historical charm and modern amenities.
North Bucharest has become particularly attractive to investors, with North Bucharest Investments reporting a 50% surge in sales in June 2024, driven by modern infrastructure and prime locations.
Cluj-Napoca's central districts continue to command premium prices, with the average price per square meter rising by 13.3% since the start of 2025 to EUR 2,606 in key areas.
| City/Neighborhood | Average Price (EUR/m²) | Premium vs City Average |
|---|---|---|
| Bucharest - Centru | 3,115 | +19.53% |
| Bucharest - Floreasca | 2,200 | +18.1% |
| Cluj-Napoca - Central | 3,500 | +16.7% |
| Timișoara - Central | 1,900 | +11.8% |
Areas with new infrastructure developments, particularly those benefiting from EU-funded projects, are seeing accelerated price growth as accessibility and amenities improve.
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How does Romania's property market compare to other CEE countries?
Romania remains among the most affordable property markets in Central and Eastern Europe, offering significant value compared to neighboring countries.
With Bucharest prices at EUR 1,862 per square meter and Cluj-Napoca at EUR 3,000 per square meter, Romania is substantially cheaper than Prague (EUR 5,600/m²) or Warsaw (EUR 4,300/m²).
Romania's rental yields averaging 6.46% are competitive within the CEE region, though Moldova, Lithuania, and North Macedonia are currently seen as top investment destinations for 2025.
The country's 14% annual price growth outpaces many CEE markets, reflecting strong domestic demand and ongoing urbanization trends that continue to drive the market forward.
It's something we develop in our Romania property pack.
What role are foreign investors playing in driving prices?
Foreign investors account for approximately 30% of property buyers in Bucharest as of 2025, representing a significant force in the market.
International investment activity reached EUR 419 million in the first half of 2024, more than double the EUR 167 million recorded during the same period in 2023.
The shift in foreign investment focus toward industrial and retail assets has indirectly supported residential prices by demonstrating overall confidence in Romania's real estate market.
EU membership continues to attract foreign buyers, with Romania benefiting from infrastructure investments and regulatory stability that make it appealing to international investors.
Growing emphasis on ESG criteria among international investors is driving demand for modern, energy-efficient properties, pushing up prices for new builds that meet these standards.
What are the main factors limiting property supply in 2025?
Building permits in Romania declined by 15% over the past 12 months, from 51,560 to 43,851 units, creating a significant constraint on future supply.
Current permit levels remain 30.46% below the 2021 peak, indicating ongoing stagnation in construction activity that will limit new housing availability through 2025-2026.
Rising construction costs, driven by inflation and increased material prices, have made many development projects economically unviable, further restricting new supply.
Labor shortages in the construction sector, combined with competition for skilled workers from EU-funded infrastructure projects, have slowed development timelines and increased costs.
Limited land availability in prime urban locations, particularly in Cluj-Napoca and central Bucharest, creates natural supply constraints that continue to push prices upward in these areas.
How are recent government policies affecting property prices?
The revised construction tax system introduced in 2025, with reduced and differentiated rates replacing the previous flat 1% tax, has provided some relief to developers.
Local authorities can now adjust property tax rates within national ranges, with Bucharest opting for the minimum rate of 0.1% for 2025, making property ownership more affordable.
The removal of certain tax incentives in January 2025 increased labor costs for developers by an estimated 10-15%, contributing to higher prices for new apartments.
| Policy Change | Impact on Market | Effect on Prices |
|---|---|---|
| Reduced Construction Tax | Lower development costs | Slight downward pressure |
| Property Tax Flexibility | Improved affordability | Neutral to positive |
| Removed Labor Incentives | Higher construction costs | Upward pressure |
| EU Infrastructure Funds | Improved accessibility | Upward pressure in affected areas |
| Early Payment Discounts | 10% tax reduction | Slight positive impact |
Massive EU-funded infrastructure projects have driven construction activity to historic highs, indirectly supporting property values through improved accessibility and urban development.
We made this infographic to show you how property prices in Romania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Romania are going up significantly. The residential market continues its upward trajectory with national average prices increasing by 14% year-on-year and major cities like Cluj-Napoca and Bucharest experiencing even stronger growth of 15.7% and 15.0% respectively.
Despite economic headwinds including high inflation and rising interest rates, the fundamental supply-demand imbalance continues to drive prices higher. Limited new construction, strong urbanization trends, and sustained foreign investment support the market's resilience, making significant price drops unlikely in the near term.
Sources
- Global Property Guide - Romania Residential Property Market Analysis 2025
- Integra Dom - Bucharest vs Cluj-Napoca Real Estate Comparison
- Trading Economics - Romania House Price Index
- Romania Insider - Colliers Report on Rising Prices
- CIJ Europe - Colliers Top 10 Predictions for Romanian Real Estate
- International Investment - Romania Real Estate Market Outlook
- Euronews - European Property Investment Analysis
- Dentons - Romania Updated Construction Tax Rules
- European Commission - Economic Forecast for Romania
- Statista - Real Estate Market Forecast Romania
- Valahia News - Romania Real Estate Market 2024 Guide