Apartment prices defy expectations and keep rising in Romania’s first-tier cities

Apartment prices in Romania’s first-tier cities continued to rise this year, by double-digit growth rates in some cases, such as Brasov, Bucharest, or Cluj-Napoca.

One year ago, in April 2023, 47.3% of the CFA analysts surveyed by CFA Romania Society expected residential prices to drop, and only 13% believed they would further increase.

In April 2024, some 70% of the same analysts see the residential properties’ prices as overvalued (73.9% in April 2023), and the rest of 30% consider they reflect properties’ value. Out of the surveyed analysts, 53% expect the prices to decrease, 23.5% expect price stability, and another 23.5% believe there is still room for higher prices.

However, the data collected by Imobiliare.ro show that apartment prices increased by 18% y/y in Brasov, 11% in Bucharest, 10% in Cluj-Napoca, or 8.7% in Timisoara as of May, according to Ziarul Financiar.

In the case of new apartments in Bucharest, the prices (EUR 1,875/sqm on average) were 16% higher in May 2024 compared to May 2023.

The average value for apartments in Bucharest rose to a record of EUR 1,723/sqm, representing an annual advance of over 11%. A new maximum level was also reached in the segment of old apartments of EUR 1,705/sqm.

Cluj-Napoca remains the most expensive city in the country for buyers interested in an apartment. With an increase of 3% only in the last 30 days, the average price requested for new residential properties reached at the end of May the value of EUR 2,960/usable square meter.

(Photo source: Dreamstime.com)