Authored by the expert who managed and guided the team behind the Romania Property Pack
Everything you need to know before buying real estate is included in our Romania Property Pack
What is happening in Romania’s real estate market? Are prices on the rise or decline? Is Bucharest still a prime location for foreign investors? How is Romania’s government influencing real estate policies and taxes in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the country, from Cluj-Napoca to Constanța and beyond. Maybe you’re curious about these topics too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Romanian real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Romania’s property prices will grow moderately with improving economic stability
Romania's residential property market is experiencing moderate growth thanks to economic stability.
Despite a slight slowdown, the country's GDP growth of 1.8% in 2023 still reflects a strong economy. This strength is expected to persist as structural reforms and investments continue to bolster long-term stability.
Foreign direct investment (FDI) is another driving force, with the real estate sector attracting €2.2 billion in 2023. This makes it the second-largest FDI sector in Romania, showing that foreign investors find the market appealing.
Foreign investors own a significant share of modern commercial properties, which bodes well for the residential market. Their involvement is a positive indicator of continued growth in the sector.
Even with rising interest rates, demand for residential properties remains strong, as seen in a 6.3% increase in property transactions in late 2023. However, construction activity is declining, leading to a supply shortage.
This demand-supply imbalance is likely to push house prices up, contributing to the market's moderate growth. The upward pressure on prices is a key factor to watch.
Sources: Global Property Guide, Romania Journal, Deturope
2) Coastal areas will see higher rental yields as tourism grows
Coastal areas in Romania are experiencing a boost in rental yields, thanks to growing tourism.
In 2024, Romania welcomed 7.666 million tourists, a 3.8% increase from the previous year, with many flocking to the scenic coastal regions. The Romanian Black Sea coast alone draws in over 1.3 million visitors annually, highlighting its popularity. This steady stream of tourists has led to more overnight stays, with 15.975 million recorded in the first seven months of 2024, up by 3.4% from 2023.
Such a rise in tourist numbers means a higher demand for short-term rentals, especially during peak seasons. The European Investment Bank has stepped in with a €97 million investment to protect the Romanian Black Sea coast from erosion and floods. This not only safeguards the area but also makes it more attractive and accessible, likely boosting rental yields further.
Seaside hotels are also seeing high demand, with 71,517 beds available in 2023, indicating a strong appetite for coastal accommodations. This demand is a clear driver for increasing rental yields in these areas.
Sources: Travel and Tour World, European Investment Bank, Statista
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Romania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Ploiesti will draw more investors with its proximity to Bucharest and lower property prices
Ploiesti is becoming a hot spot for investors, thanks to its strategic location near Bucharest and lower property prices.
Living in Ploiesti is much cheaper than in Bucharest, with rent prices about 27% lower. This makes it a great choice for people and businesses wanting to save money. As Bucharest's property prices keep climbing, Ploiesti stands out as a more affordable option.
The demand for budget-friendly housing near Bucharest is growing. Ploiesti is benefiting from this trend, especially with new infrastructure projects that improve connectivity between the two cities. This makes commuting easier and more efficient, adding to Ploiesti's appeal.
Businesses are also moving to Ploiesti to enjoy lower operational costs. This shift highlights the city's economic potential and draws more investors looking for cost-effective opportunities. The real estate market is buzzing about Ploiesti's growth potential, emphasizing its proximity to Bucharest and competitive property prices.
Insider knowledge suggests that Ploiesti's development is not just about cost savings. The city is also seeing improvements in local amenities and services, making it a more attractive place to live and work. This adds another layer to its investment appeal.
With these factors in play, Ploiesti is poised to become even more attractive to investors. Its combination of affordability, improved infrastructure, and economic potential makes it a compelling choice for those looking to invest near Bucharest.
4) Bucharest’s rental yields will rise as demand for rental properties exceeds supply
Rental yields in Bucharest are on the rise as the demand for rental properties continues to outpace supply.
In 2023, rental yields in Bucharest ranged from 4.03% to 8.98%, with the city average slightly higher than the national average at 6.36%. This shows a healthy rental market that's ready to grow. The city's ongoing urbanization and population growth are major drivers of this trend. As more people flock to Bucharest, the need for rental properties increases, pushing up rental prices and yields.
Adding to the demand are the growing numbers of expatriates and international students. In the 2022-2023 academic year, 30,480 international students enrolled in bachelor programs in Romania, a significant jump of 40.5% from 2014-2015. This influx of students and professionals is a key factor in the rental market's expansion.
Another element is the decline in new housing construction permits, which worsens the supply shortage. With fewer new homes being built, existing rental properties become more valuable, leading to higher rental yields. Surveys also show that younger people prefer renting over buying, further boosting the demand for rentals.
Insider knowledge suggests that the trend is particularly strong in areas with good transport links and amenities, making them hotspots for renters. The city's vibrant lifestyle and job opportunities are magnets for young professionals, who often choose to rent in these bustling neighborhoods.
As the rental market tightens, landlords are likely to see increased returns on their investments. This is especially true in central areas where demand is highest, and supply is limited. The combination of these factors makes Bucharest an attractive option for property investors looking to capitalize on the growing rental market.
Source: Global Property Guide
5) Property prices in some rural areas will fall as urbanization trends persist
Rural property prices in Romania are expected to drop as more people move to cities.
With over half of Romania's population now living in urban areas, there's a clear shift towards city life. This move is backed by major investments in urban infrastructure, like the €7.6 billion set aside for roads and railways, making cities more appealing. As cities become more attractive, rural areas see fewer residents, leading to less demand for property.
Urban real estate is thriving, with apartment prices climbing, showing a strong preference for city living. This is largely because cities offer better job opportunities and services, drawing people away from the countryside. As a result, rural areas are losing public services and schools are closing, making them even less desirable.
In rural regions, the population is shrinking due to low birth rates and emigration. This decline means fewer people are interested in buying property there, which naturally leads to lower prices. The trend of moving to urban areas is not just about better jobs; it's also about access to amenities and a more vibrant lifestyle.
As cities continue to grow, rural areas face challenges in maintaining their communities. With fewer residents, there's less need for local services, which can lead to a cycle of decline. This makes it tough for rural areas to compete with the allure of urban living.
For those considering buying property in Romania, it's important to weigh the benefits of urban convenience against the tranquility of rural life. However, with the current trends, urban areas are likely to offer more growth potential in the real estate market.
Sources: Global Property Guide, Statista, World Highways
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6) Brasov will see higher demand for short-term rentals as tourism boosts its real estate market
Brasov's real estate market is set to thrive thanks to a surge in tourism, especially in short-term rentals.
In 2023, Romania experienced a notable increase in foreign tourists, with many flocking to Brasov. This trend underscores Brasov's growing charm for international visitors. In Poiana Brasov, a nearby resort town, short-term rentals on platforms like Airbnb and Vrbo are in high demand, with an average occupancy rate of 35%. This shows that tourists are leaning more towards short-term rentals rather than traditional hotels.
The number of active listings in Poiana Brasov has grown by 8% over the past year, with most being entire homes, which are highly sought after by tourists. Local government initiatives have made Brasov even more attractive. Investments in infrastructure, such as parks, sports facilities, and a new stadium, aim to make the city appealing all year round.
Brasov International Airport's opening has significantly improved accessibility, making it easier for tourists to visit. These developments, combined with cultural projects supported by significant grants, are set to boost tourism even further. The local government is keen on enhancing Brasov's appeal, ensuring that the city remains a top choice for visitors.
With these improvements, Brasov is becoming a hotspot for short-term rental properties. The increased tourist influx means a higher demand for accommodations, making it a lucrative opportunity for property investors. The city's strategic location and tourism potential are drawing real estate investors, eager to capitalize on this trend.
As Brasov continues to attract more tourists, the real estate market is expected to see a rise in property values. This makes it an ideal time for potential buyers to consider investing in the area. The combination of increased tourism and improved infrastructure is setting the stage for a thriving real estate market in Brasov.
Sources: Romania Insider, AirDNA, Romania Property Club
Our team found this video where Brasov's appeal as a tourist destination is highlighted, showcasing its growing demand for short-term rental properties.
7) Bucharest’s northern neighborhoods will attract wealthy buyers with new luxury developments
In 2023 and 2024, Bucharest's northern neighborhoods became a magnet for high-income buyers due to a boom in luxury real estate projects.
Developments like Quartier Du Nord and Crown Towers have set new standards for luxury living, offering a variety of high-end residential units and amenities. These projects have not only attracted affluent buyers but have also pushed property prices upward due to high demand and limited new construction permits.
The area's appeal is further enhanced by its excellent infrastructure, including parks, shopping centers, and major transportation routes. This makes it a prime location for both residential and commercial investments, drawing in those seeking premium properties.
Demographic data reveals a concentration of high-income residents in northern Bucharest, largely due to its proximity to business districts and international schools. Surveys echo this preference, showing a strong demand for high-quality housing options and top-notch infrastructure.
These neighborhoods are not just about luxury homes; they offer a lifestyle that includes easy access to essential amenities and services. The combination of these factors ensures that northern Bucharest remains a hot spot for those looking to invest in premium real estate.
Sources: Metropolitan Residence, Romania Insider, Property Forum, Business Review
8) Romania will see rising demand for senior-friendly housing due to its aging population
Romania's life expectancy has climbed to an average of 76 years in 2024.
As people live longer, the country is seeing a shift in its population dynamics. In 2024, there were 927,000 more elderly individuals aged 65 and over than young people. This demographic change is reflected in the aging index, which increased from 124.9 in 2023 to 130.2 in 2024. With more seniors, there's a growing need for housing that meets their specific needs.
The senior housing market is booming, with a 40% increase in the absorption rate in early 2024 compared to the previous year. This surge is fueled by the demand for quality senior care and specialized housing, as older adults seek age-appropriate living spaces.
In Romania, the aging population is driving a transformation in the housing sector. More seniors are looking for homes that offer comfort and accessibility, making senior-friendly housing a hot commodity. This trend is reshaping the real estate market, with developers focusing on creating environments that cater to the needs of older adults.
For those considering buying property in Romania, understanding this shift is crucial. The demand for senior-friendly housing is not just a trend; it's a response to the country's changing demographics. As the population ages, the need for suitable living arrangements will only grow, offering potential opportunities for investors and homebuyers alike.
Sources: INS: Demographic Aging Intensifies in Romania, New Data Shows, Life Expectancy in Romania 1950-2024 & Future Projections, Senior Housing Industry Forecast: What to Expect in 2025 and Beyond
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Romania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Government initiatives will aim to boost the supply of affordable housing
The Romanian government is actively working to boost the supply of affordable housing.
One major initiative is the HERO pilot project, which is backed by the European Parliament, European Commission, and Council of Europe Development Bank. This project aims to enhance housing conditions for marginalized Roma communities by offering financial and construction skills training, micro-loans, and better job opportunities. This effort is part of a broader strategy to address the rising demand for affordable housing among low and middle-income families.
Public-private partnerships (PPP) are also playing a crucial role in Romania. By leveraging available EU funds, these partnerships help make housing projects more affordable and support the development of essential infrastructure. This approach is vital for meeting the growing housing needs in the country.
The World Bank Group's renewed partnership with Romania focuses on improving human capital outcomes and creating better job opportunities. This collaboration indirectly supports increased budget allocations for housing in national economic plans, aligning with international recommendations to enhance housing affordability.
Rising rental costs are another pressing issue, as they often outpace income growth. Many Romanian workers earn below the average income, making it challenging to afford market rent, even with two salaries. This situation underscores the importance of government initiatives aimed at increasing affordable housing options.
Sources: World Bank, Council of Europe Development Bank, Housing Rights Watch
10) Home office-equipped properties will gain desirability as remote work becomes more prevalent
Remote work has become a major trend in Romania, reshaping how people choose their homes.
In 2023, about 20% of Romanian employees worked entirely from home, with many others balancing between home and office. This shift is pushing more companies to adopt flexible work models, making home office spaces a hot commodity.
Homebuyers now want properties that blend personal and professional spaces. A survey from 2023 revealed that two-thirds of Romanian Gen Z favored remote work, with half enjoying the comfort of working from home. This preference is driving the need for homes that support both living and working.
The demand for home office furniture in Romania is on the rise, as people seek comfortable and efficient workspaces within their homes. Real estate listings are catching on, increasingly highlighting properties with dedicated office areas.
For those considering buying property in Romania, it's worth noting that homes with office spaces are becoming more desirable. This trend is not just about having a desk in the corner; it's about creating a space that enhances productivity and comfort.
As remote work continues to grow, the real estate market is adapting to meet the needs of modern homebuyers. Properties that offer flexible spaces are likely to see increased interest and value.
Sources: eJobs Romania Survey, Statista Generation Z Preferred Work Environment, Statista Market Forecast
11) Suburban areas in Cluj-Napoca will attract more buyers as remote work becomes common
Cluj-Napoca's property prices have surged, especially in the city center.
By the end of 2022, the average price for apartments in the city center hit EUR 2,261 per square meter, a noticeable jump from the previous year. This spike has nudged many to explore more budget-friendly options outside the city. Suburban areas like Apahida, Florești, and Baciu are catching the eye of potential buyers. For example, Apahida offers apartments at an average of EUR 1,248 per square meter, making it a more affordable choice.
These suburbs not only offer cheaper housing but also larger spaces, which are becoming a hot commodity. With remote work on the rise, people crave more room for home offices and a better quality of life. The shift to remote work has made these spacious homes even more attractive. People are increasingly drawn to the idea of living in a place where they can balance work and leisure.
Romania's growing remote work opportunities are a big factor in this suburban shift. The freedom to work from anywhere is pulling individuals towards these roomy and affordable homes. Plus, the internet infrastructure in these areas has improved, supporting remote work needs. This makes suburban living not just a cost-effective choice but a practical one.
As remote work becomes more common, Cluj-Napoca's suburban areas are likely to see increased interest. The combination of affordability, space, and connectivity is hard to resist. Suburban areas are becoming the new hotspots for those seeking a balanced lifestyle.
Sources: OECD Report, Romania Insider
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12) Craiova’s residential property demand will rise as new industrial projects boost job opportunities
Craiova is buzzing with new industrial projects, making it a hot spot for job seekers and home buyers.
Take Ford Motor Company, for example. They've poured EUR 1.5 billion into their Craiova assembly plant, creating 1,500 new jobs. This kind of investment doesn't just mean more jobs; it also means people are flocking to the area, which naturally boosts the demand for housing.
Then there's the High-Tech Industry Park Craiova. With 48 companies investing EUR 28.5 million and creating 2,540 jobs, the park is fully occupied. This shows a booming industrial scene, which means more folks are moving in for work, and they all need places to live.
The Romanian government is sweetening the deal with tax breaks for industrial development, drawing even more investments to Craiova. These incentives are likely to stick around, fueling the city's industrial growth and, in turn, the housing market.
Infrastructure is getting a facelift too. The new Craiova-Pitesti highway is improving connectivity, making the area even more appealing for businesses and workers. This kind of accessibility is a big plus for anyone thinking about moving here.
Sources: Romania Insider, Primaria Craiova, Rise Consortium
13) Online platforms will simplify and make the property buying process more accessible
In Romania, online platforms have made buying property much easier.
Back in 2023 and 2024, there was a noticeable shift as more people turned to property buying apps and websites. This change was part of a larger trend where the Romanian eCommerce market saw a significant boost, reflecting how digital channels became essential for real estate.
With the rise in demand for modern apartments, especially among the growing middle class, online property listings surged. People preferred searching for homes digitally, finding it more convenient and accessible than traditional methods.
Virtual tours and 3D walkthroughs became a game-changer, allowing buyers to explore homes from their couches. This tech innovation led to an 87% increase in listing views and a 45% boost in engagement, making it easier to check out properties without stepping outside.
Romania saw a wave of investment in proptech startups, which fueled new digital solutions in real estate. These innovations made the property buying process smoother and more efficient, catering to the needs of tech-savvy buyers.
Sources: Valahia News, Giraffe360, ITKey Media, Trade.gov
In this video, we can see how online platforms are simplifying property transactions in Romania, making them more accessible to buyers.
14) Oradea’s property interest will grow as infrastructure upgrades enhance accessibility
Oradea is quickly becoming a hotspot for property interest due to several exciting developments.
One major factor is the increased government investment in infrastructure, like the new stadium approved in 2023. This isn't just for football; it will have a hotel and conference rooms, making it a versatile venue. Imagine the buzz during events, drawing more visitors and potential property buyers.
Then there's the expansion of Oradea Airport, completed in 2024. With a longer runway, larger planes can now land, boosting the city's connectivity. This means more business travelers and tourists can easily visit, naturally increasing interest in local real estate.
The residential market is also booming. In the first half of 2024, home sales jumped by over 71% compared to the previous year. This surge is thanks to lower interest rates and the city's improved accessibility, making Oradea a more attractive place to live.
Urban infrastructure improvements are enhancing the quality of life. The city is focusing on energy efficiency, urban transport, and regeneration schemes. These efforts align with Oradea's development plans, aiming to boost economic growth and make the city more appealing to new residents and investors.
Real estate market analyses and media coverage highlight Oradea's improved connectivity and growth potential. Its strategic location and ongoing projects make it a prime spot for both living and investment. Real estate agents are noticing a growing interest in Oradea properties, signaling a positive trend.
Sources: StadiumDB, EIB, Business Forum, Romania Insider
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.
15) Constanta will attract more property interest as it becomes a popular coastal living destination
Constanta is quickly becoming a sought-after location for property buyers.
In 2023, the city saw a 31% increase in new homes, with nearly 5,000 completed, largely thanks to the booming Mamaia – Navodari area, which alone experienced a 55% surge in new developments. This area is particularly attractive due to its proximity to the beach and exciting nightlife, making it a prime spot for both locals and tourists.
The real estate market is buzzing, with a 12.7% rise in residential property sales in the last quarter of 2023 compared to the previous year. This indicates a growing interest in the area, as more people are drawn to Constanta's unique blend of urban and coastal living. The city's charm is further enhanced by its status as a top tourist destination, with 1.57 million visitors in 2023, ranking it just behind Bucharest.
Infrastructure improvements are also playing a key role in Constanta's appeal. The ongoing modernization of the port is set to attract more investors and residents, making the city a hub of activity and opportunity. These developments are part of a broader effort to position Constanta as a premier coastal destination.
Media campaigns and government initiatives are actively promoting Constanta's coastal allure, which is likely to draw in even more potential buyers and renters. The city's strategic location on the Black Sea coast offers a unique lifestyle that combines the benefits of city living with the tranquility of seaside life.
With its growing infrastructure, exciting real estate market, and increasing popularity as a tourist hotspot, Constanta is poised to become a top choice for those looking to invest in property. The city's transformation is not just about numbers; it's about creating a dynamic environment that appeals to a wide range of people.
Sources: Romania Insider, Romania Insider, Kohesio
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.