Cordia analysis: Bucharest gaining attention of regional investors thanks to its affordability
Bucharest is increasingly standing out on the residential investment map of Central and Eastern Europe as its new-build home prices remain more affordable than in Budapest, while rental yields are comparable to those seen on the Polish market, according to an analysis by Cordia, one of Europe’s largest residential developers and investors.
More homebuyers and investors are looking beyond the simple price per square meter. Total investment cost, rental potential, and long-term market prospects are becoming increasingly important considerations. From this perspective, Bucharest is emerging as one of the region’s most attractive residential markets. While the average price of new-build homes in Budapest has exceeded EUR 5,200 per square meter and prices in Warsaw are approaching EUR 4,700 per square metre for unfinished units, the average price of new homes in Bucharest has remained below EUR 3,600 per square meter, even after significant growth over the past year.
“These price differences, which can be substantial in some cases, may also attract the attention of Hungarian investors. For our cross-border projects, we naturally assist buyers wishing to purchase a new-build home either elsewhere in the region,” said Áron Görög, Head of Sales at Cordia.
At the same time, gross rental yields in Bucharest stand at approximately 5-6%, a level comparable to that seen across major residential markets in Poland.
The analysis also shows that residential markets across Central and Eastern Europe cannot be compared solely based on headline prices. For example, unlike in Romania and Hungary, developers in Warsaw traditionally sell homes in an unfinished condition, which means buyers face significant additional fit- out costs before moving in.
At the same time, construction costs for an average residential project in Bucharest or Warsaw are approximately 25-30% lower than in Budapest, while land prices per square meter in the Polish capital are more than twice as high as in either Bucharest or Budapest.
Differences between tax systems are also important. In Hungary, VAT on newly built homes is currently 5% and can be reclaimed for homes located in designated brownfield regeneration areas. In Poland, the VAT rate is 8% for residential properties up to 150 square meters, while any floor area above that threshold is taxed at 23%. In Romania, following a period of reduced taxation, VAT returned to 21% in August 2026.
“Prices are strongly influenced not only by differences in underlying costs, but also by the complexity of administrative processes, varying levels of demand and the range of government support schemes available to buyers,” added Áron Görög.
(Photo source: Lucian Milasan|Dreamstime.com)
