Bucharest home sales drop but prices keep climbing in first half of 2025
<p>The residential market in Bucharest and the surrounding Ilfov county showed signs of cooling in the first half of 2025, with the number of transactions down 10% compared to the same period last year. Despite the decline in sales, prices continued to rise, driven by high inflation, anticipated tax changes, and limited supply, according to a report by iO Partners.</p>

<p>In Bucharest, transactions involving new homes (those built after 2010) continued to fall, suggesting a recalibration of demand amid elevated prices. In Ilfov, however, transactions registered a slight increase, with the area remaining attractive due to more competitive prices and available land for development.</p>

<p>Average selling prices in Bucharest rose by 9.3% in the first half of the year, with most of the growth occurring in the second quarter, when prices were 10.2% higher year-on-year, reaching EUR 2,108 per usable sqm.&nbsp;</p>

<p>Increases were recorded in most neighborhoods, except for parts of the west and southwest, as well as some of the city’s most expensive areas, where prices were already high.&nbsp;</p>

<p>Rents for new homes held steady at EUR 11.7 per sqm per month, although slight increases were seen in Pipera, Militari, and central locations such as Victoriei, Romană, Universitate, and Unirii, according to the same report.</p>

<p>Meanwhile, the supply of new homes in Bucharest grew by 9.4% year-on-year in the first half, reaching around 4,300 units. In contrast, Ilfov saw a sharp drop, with fewer than 1,000 units delivered - down nearly 60% from last year.&nbsp;</p>

<p>The second quarter brought a steep reduction in completions, with Bucharest deliveries down 58% and Ilfov down 74% compared to the same quarter in 2024.&nbsp;</p>

<p>By year’s end, 8,300 more units are expected in Bucharest and around 2,500 in Ilfov, provided there are no delays, iO Partners said.</p>

<p>Analysts say the apparent contradiction between falling transactions and rising prices is explained by a combination of inflation, higher construction costs, limited supply, and the anticipation of tax changes, including an increase in VAT on housing from August.&nbsp;</p>

<p>Stable interest rates have also encouraged buyers to secure mortgages before potential increases, while fears of further price hikes have spurred early purchases. In some cases, actual transaction prices, particularly for homes bought off-plan, may be up to 10% lower than list prices due to promotions and discounts.</p>

<p><i>irina.marica@romania-insider.com</i></p>

<p><i>(Photo source: <a href="https://www.dreamstime.com/">M</a></i><em><a href="https://www.dreamstime.com/">ast3r/Dreamstime.com</a>)</em></p>