Over the past 2 or 3 years, prices for premium properties delivered after 2018 have mostly doubled, now averaging between €6,000 and €8,000/ sq. m in top locations, with some properties having substantially higher asking benchmarks.
For some properties, prices even go beyond these values, reveals an analysis of real estate consultancy Cushman & Wakefield Echinox.
According to this analysis, the current dynamics is determined by a deep imbalance between demand and supply. The extremely limited supply in these areas is the main driver behind price increases.
“One of the main drivers of this price growth relates to the extremely limited supply. In the past 5 or 6 years, no new developments received the necessary permits required in order to commence construction in these premium locations, and vacant land plots are virtually non-existent. The current legislation imposes strict restrictions on the demolition and conversion of older buildings in these protected areas, thus making the existing properties increasingly exclusive and difficult to replicate,” stated Raluca Plavita, Head of Residential Agency at Cushman & Wakefield Echinox.
Premium property buyers generally do not rush to close transactions, as they typically already own other residences, either in Romania or abroad, while they are searching for homes which meet specific requirements – location, larger areas, generous gardens, and high-end amenities. There are also private investors in the quest for rare opportunities or properties with rental potential for embassies or multinational companies, but they only represent a small proportion of the total buyers. As a result, the transaction process can last anywhere from 6 to 12 months.
Not all premium locations offer the same benefits or price levels. For example, although Floreasca is in the vicinity of a major office hub in the North area of Bucharest, it does not generally reach the same prices as in Primăverii or Dorobanți, except for rare and specific cases. Even within Dorobanți, its micro areas show significant price differences depending on location, year of construction, and overall building quality.
The consultants anticipate that prices will continue on this upward trend for truly valuable properties in exceptional locations, these homes becoming genuine “portfolio properties.” In the absence of new developments and amid ongoing demand, such units will remain highly sought-after and increasingly inaccessible.
“The premium residential market continues to set new records, both in terms of prices and exclusivity levels. The extremely limited supply of villas and penthouses in established destinations such as Primăverii, Dorobanți, Aviatorilor, and Kiseleff fuels this dynamic, making each transaction a complex and personalized process,” concludes Raluca Plavita.
(English version by Catalina Apostoiu)