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What will happen in Romania’s real estate market? Will prices go up or down? Is Bucharest still a hotspot for foreign investors? How is Romania’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Romania, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Romania’s property prices will keep rising due to low supply and high demand
Romania's residential property prices are on the rise, and this trend is expected to continue.
In bustling urban areas, there's a noticeable uptick in demand. For example, the last quarter of 2023 saw a 6.3% increase in sales of houses, land plots, and apartments compared to the previous year. This surge is especially visible in major cities, where the number of sales transactions has grown significantly.
On the flip side, the supply of new housing is shrinking. In 2023, residential building permits plummeted by 20.6% from the previous year. This drop in construction means fewer new homes are hitting the market, pushing prices up. Take Bucharest, for instance, where new home completions fell by 32% in the first quarter of 2024 compared to the same period in 2023.
Romania's economy is growing, and its competitive property prices are catching the eye of foreign investors, adding more fuel to the demand. With government incentives for homebuyers and low interest rates, mortgages are more accessible, encouraging more people to buy homes. These elements are collectively driving property prices higher.
Demographic shifts, like urbanization and migration to cities such as Bucharest and Cluj-Napoca, keep the demand for housing strong. Reports of housing shortages in key areas, due to fewer new homes being delivered, mean demand is outstripping supply, further elevating property prices.
Sources: Global Property Guide, Romania Insider, Crowdsq
In this video, property prices in Romania are shown to remain relatively low but with strong growth potential, particularly in major cities where demand is increasing.
2) Rental yields in Romania's tourist areas will rise as domestic travel grows
Romania is experiencing a boom in domestic tourism.
In 2024, the country welcomed 7.666 million tourists in just the first seven months, with a whopping 82.9% being locals. This trend continued into July, where 86.2% of tourists were Romanian, showing a clear love for exploring their own backyard.
With more Romanians traveling within the country, short-term rental properties are seeing a surge in demand. In Bucharest alone, the short-term rental market raked in over EUR 40 million in 2023, a significant jump of 46% from the previous year. Even with fewer listings, the demand pushed the average daily rate up by 60% to EUR 62.
The Romanian government is fueling this domestic travel boom by making it easier for young families to hit the road. They've rolled out affordable travel options and programs for subsidized mortgages, which are making local travel more accessible and boosting the need for rental properties in tourist hotspots.
Sources: Travel and Tour World, Romania Insider, Integra Dom
We have made this infographic to give you a quick and clear snapshot of the property market in Romania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Rents in Romania's university towns will rise due to growing student populations
Student enrollment at Romanian universities has been steadily increasing, with a notable rise in 2023.
In Cluj-Napoca, home to Romania's largest university, the demand for off-campus housing has surged. This has led to higher rental prices and housing shortages. It's not just Cluj-Napoca; Bucharest is experiencing similar trends, where the lack of student accommodation is pushing prices up, making it tough for students to find affordable places to live.
In university towns like Timișoara and Iași, rental prices typically rise by 10-15% during the academic year. This is largely due to the influx of students during this period. Many students prefer off-campus housing for the independence and better living conditions it offers, further driving up demand and prices.
Surveys show that students are increasingly opting for off-campus housing due to the independence and better living conditions it offers. This preference is contributing to the rising demand and prices in these areas.
As the student population continues to grow, the demand for housing in university towns is expected to increase. This trend is likely to continue, making it a potentially lucrative market for property investors.
Sources: Romanian Ministry of Education and Research, Local Real Estate Agency, Bucharest City Hall, Local Real Estate Firm, Student Survey
4) Yields in Romania's secondary cities will drop as property prices outpace rent increases
In Romania's secondary cities, property prices are climbing faster than rents.
Take Cluj-Napoca, for instance, where the average house price has jumped to €2,363 per square meter, thanks to a thriving tech scene and high demand. Meanwhile, Brasov isn't far behind, with apartment prices shooting up by 14.09% in early 2024.
Despite these rising property prices, rental yields are not keeping pace. Across the country, rental yields have stayed pretty stable, averaging 6.16% in 2023. In Cluj-Napoca, yields range from 5.34% to 8.41%, showing that rents aren't catching up with property values.
Reports from the Global Property Guide highlight that high inflation is widening the gap between nominal and real figures, meaning rental yields might lag behind the rapid property price increases.
Urbanization and economic growth are also playing a role. As Romania's economy picked up speed in 2024, more people are choosing to buy rather than rent, pushing property prices even higher.
Sources: Global Property Guide, Aparthotel
5) Property values in Brasov will rise as it becomes popular with tourists and remote workers
Brasov is quickly becoming a favorite spot for tourists and remote workers alike.
In early 2024, Brasov ranked as Romania's second most popular destination after Bucharest. With 544,400 tourist arrivals and over a million overnight stays in just the first five months of the year, the city is buzzing with activity. This influx naturally boosts the demand for accommodation, which can lead to rising property values.
Remote workers are also eyeing Brasov, despite some hurdles like high living costs and internet speed issues. The city is seeing a rise in co-working spaces and short-term rental demand, signaling a growing interest from digital nomads. This trend shows that more remote workers are considering Brasov as a viable place to live and work, which can further increase property values.
Brasov's charm is catching the eye of travel and lifestyle media, as well as social media influencers. This increased visibility is drawing in more tourists and remote workers, adding to the demand for properties. The opening of new businesses and co-working spaces in the city is a testament to its vibrant local economy, which can enhance property values.
As Brasov continues to gain popularity, the city is becoming a hotspot for both tourists and remote workers. This dual appeal is creating a unique opportunity for property investors, as the demand for housing is likely to keep climbing. The combination of a thriving tourism sector and a growing remote work community makes Brasov an attractive place to invest in real estate.
Sources: Romania Insider, Act Media, Nomads.com
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6) Romania will see more energy-efficient homes as new regulations encourage sustainable building practices
In Romania, new regulations are driving a shift towards energy-efficient building practices.
Thanks to these changes, builders now enjoy tax breaks and subsidies when they use eco-friendly materials and invest in green technologies. This financial boost makes it easier for developers to embrace sustainable construction, as it helps cover the initial costs.
Romania has also aligned with the European Union's Revised Directive on energy performance, setting ambitious energy efficiency standards for buildings. By doing so, the country is not only improving its building energy performance but also enhancing its residential real estate sector.
The government has rolled out a National Plan for Energy Efficiency, aiming for a 50% reduction in building energy consumption by 2030. This plan outlines clear steps to achieve these goals, reinforcing the push for energy-efficient practices.
With a mix of government incentives, EU directives, and national plans, Romania's real estate market is primed for a green transformation. This framework encourages developers to adopt energy-efficient building methods, making it a win-win for both the environment and the economy.
For those considering buying property in Romania, these changes mean more sustainable and cost-effective homes. The focus on energy efficiency not only benefits the planet but also promises long-term savings on energy bills.
Sources: Property Forum, 6Wresearch, CEE Legal Matters
We believe this video highlights Romania's commitment to energy-efficient practices through new initiatives and regulations for greener homes.
7) Demand for senior-friendly housing in Romania will grow as the population ages
Romania is seeing a noticeable shift in its demographics, with 4,003,000 people aged 65 and over by July 2024.
This means there are 927,000 more seniors than children aged 0-14, highlighting a growing need for homes that cater to older adults. As people age, they often look for housing that is not only comfortable but also supports their health and mobility.
By 2050, it's expected that 27.7% of Romania's population will be elderly, a jump from 19.2% in 2023. This shift is significant because it underscores the increasing demand for senior-friendly housing, which is designed to be more accessible and equipped with features that help seniors live independently.
Currently, the senior housing market is feeling the pressure, as the 80+ age group is growing faster than the available housing inventory. This gap suggests that there aren't enough suitable homes to meet the needs of the aging population, which could be a great opportunity for property investors.
As healthcare costs continue to rise, there's a push for more accessible living spaces that can help manage these expenses. Homes that offer better support for seniors can play a crucial role in reducing healthcare costs by allowing older adults to live comfortably and safely at home.
For those considering investing in property, this trend presents a unique opportunity. The demand for senior-friendly housing is only going to increase, making it a potentially lucrative market. Investing in properties that cater to the elderly could be a smart move as Romania's population continues to age.
Sources: Romania Journal, Romania Insider, NIC MAP Vision
8) Demand for eco-friendly homes in Romania will grow as people become more environmentally conscious
In Romania, eco-friendly homes are becoming increasingly popular as more people become environmentally conscious.
In 2023, Romania saw a drop in residential building permits, which led to a limited supply of housing and rising prices. Despite this, projects like HILS Sunrise in Bucharest, which has Green Homes pre-certification, show a growing interest in sustainable housing.
The Romanian government is pushing for sustainable construction by offering tax incentives and subsidies for eco-friendly materials. This has helped the Romania Construction Materials Market grow, with a projected CAGR of 6.8% from 2024 to 2030.
National policies, like the Renovation Wave fund, aim to speed up energy-efficient renovations, planning to renovate millions of square meters of buildings by 2030. This will likely increase the demand for sustainable homes even more.
Energy-efficient homes are not just good for the planet; they also offer long-term cost savings. Homeowners could potentially save up to EUR 744 annually, making these homes a smart financial choice.
As environmental awareness grows, the demand for eco-friendly homes in Romania is expected to rise, driven by both government support and consumer interest.
Sources: Romania Insider, 6Wresearch, European Commission
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.
9) Demand for homes with office spaces will grow as Romanian consumers prioritize them
Romanian homebuyers are increasingly interested in properties with dedicated home office spaces.
This shift is largely due to the rise of remote work, which saw a dramatic increase in Romania during 2020. Back then, 22-24% of the workforce was working from home, a huge jump from less than 1% in 2019. Even though new remote job postings have slowed down by 2023, the appetite for these roles remains strong, with 13.7% of all job applications targeting remote positions.
Young Romanians, especially Gen Z, are leading this change. In 2023, two-thirds of Gen Z in Romania preferred remote work, with half wanting to work from home. This shows a clear demand for homes that can accommodate a home office. Companies in IT, services, and marketing are increasingly offering flexible work-from-home policies, which further fuels this trend.
There's also a noticeable uptick in the need for high-speed internet and home office gear, highlighting the importance of well-equipped home office spaces. Architectural and interior design trends are catching on, with more emphasis on creating functional home offices. This aligns with the growing consumer focus on work-life balance and productivity.
As these trends continue, it's clear that Romanian homebuyers will keep prioritizing properties that offer the flexibility and functionality of a home office. The demand for such spaces is not just a passing phase but a reflection of a broader lifestyle change.
Sources: The Network, Pluria, Statista
10) Demand for city-center properties in Romania will grow as urbanization trends continue
Urbanization in Romania is on the rise, and it's driving up demand for city-center properties.
In 2023, 54.67% of Romanians lived in urban areas, and this number is steadily climbing. Young people are flocking to cities like Bucharest, drawn by better job opportunities and modern amenities. The government is also playing a role, pushing for balanced development and improved urban living conditions.
There's been a big push in urban infrastructure, with over 80% of Romanian localities having approved General Urban Plans. These plans are not just paperwork; they're attracting foreign investment into real estate, which is expected to boost property values, especially in city centers.
People's tastes are changing too. Many now prefer urban living, lured by the modern amenities and historical charm of places like Old Town Bucharest. New housing projects are popping up, focusing on tech-smart, energy-efficient apartments that appeal to young professionals and tech workers.
New cultural and commercial spaces are sprouting up, and public transport is getting better, making urban areas even more attractive. This trend is not just about numbers; it's about a lifestyle shift towards convenience and culture.
Sources: Statista, UNECE, Trading Economics
11) Demand for properties in Romania's mountains will grow as more people look for outdoor activities
Romania is seeing a boom in tourism, with 7.666 million tourists arriving in 2024, a 3.8% increase from the previous year.
The Carpathian Mountains are now the second most visited region in Romania, thanks to their fantastic outdoor activities like hiking and mountain biking. This makes them a hot spot not just for tourists but also for those looking to buy property.
In the Southern Carpathians, there's a big push for eco-tourism, aiming to create one of Europe's largest wilderness landscapes. This eco-friendly focus is drawing in nature lovers and potential property buyers who want a slice of this untouched beauty.
Romania is also improving its infrastructure, with better roads and railways making the mountains more accessible. This means it's easier than ever for tourists and property seekers to explore these stunning areas.
Social media is buzzing with posts about Romania's mountains, showcasing their beauty and adventure opportunities. This online exposure is driving up interest in mountain properties, as more people see what these regions have to offer.
Government efforts to boost tourism and development in rural areas are paying off. They're supporting local businesses and infrastructure, which is attracting more tourists and potential residents to the mountains.
With climate change on everyone's mind, people are looking for cooler places to live. Romania's mountains offer temperate climates, making them a perfect escape from the heat.
Sources: Travel and Tour World, Visit Europe, Rewilding Europe, Colliers Market Report, Mountain Tourism Deep Dive
One of our partners sent us this video showcasing the appeal of properties in the Carpathian Mountains, emphasizing their demand for recreational and outdoor activities.
12) Demand for modern apartments will grow as young professionals move into Romania's tech cities
Romania's tech cities are buzzing with young professionals flocking to places like Cluj-Napoca and Bucharest.
Why? Well, it's because tech companies are setting up shop in these vibrant cities. Since 2023, major tech events like DevTalks have been held here, highlighting a strong tech industry presence. This isn't just a trend; it's a movement that's reshaping the urban landscape.
In 2023, Romania's IT industry saw a 12% growth in turnover, hitting EUR 15.6 billion. This boom has created around 190,000 jobs, making the job market incredibly appealing for young professionals. They're drawn to the exciting career opportunities and the chance to be part of a thriving community.
The IT&C sector's impact is massive, contributing up to EUR 45.3 billion to the GDP in 2023. This economic surge has led to the creation of more than 880,000 jobs, pulling young talent into urban areas. As a result, there's a noticeable uptick in real estate investments, especially in tech hubs like Cluj-Napoca and Bucharest.
With the influx of young professionals, the demand for modern apartments is skyrocketing. These cities are not just tech hubs; they're becoming vibrant communities where people want to live and work. The real estate market is responding to this demand, with new developments popping up to cater to the needs of this dynamic workforce.
So, if you're considering buying property in Romania, keep an eye on these tech cities. They're not just growing; they're transforming into the places to be for young professionals. The future looks bright for those investing in these urban hotspots.
Sources: Romania Insider, DevTalks, Alcor BPO
13) Better roads in Romania will make previously hard-to-reach areas more appealing for property investment
Romania is making big moves to improve its road networks, which is great news for property investors.
The government has set aside €3.05 billion for road and highway upgrades in 2023 and 2024, showing they're serious about boosting transport infrastructure. One standout project is the plan to extend the highway network from 970 km to 1,300 km by 2025. This includes the Ploiesti-Pascani Motorway, backed by a €600 million investment from the European Investment Bank.
This new motorway will cut down travel times and link up major cities with rural areas, making them more reachable. Improved roads mean previously remote areas are now on the map for buyers and investors. Take the new expressway from Satu Mare to Hungary's border, for example. It's set to open up the north of Romania, making it a hot spot for property seekers.
With these changes, real estate experts are seeing a shift. Property values in these newly accessible areas are on the rise, with predictions of a 5-10% increase in property prices by 2025. This is a golden opportunity for those looking to invest in regions that were once hard to reach.
For anyone considering buying property in Romania, these road improvements are a game-changer. They not only make travel easier but also boost the appeal of areas that were once off the beaten path. As the infrastructure continues to develop, expect more areas to become attractive for investment.
Sources: World Highways, World Highways, Integra Dom, World Highways
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.