The average price of a new apartment in the capital has surpassed €2,500/sqm of usable area — the fastest growth rate among Romania's major cities. Interest rates are falling, but a steep VAT hike has restructured the market from the ground up.

The Numbers That Define the Picture

The end of 2025 set a clear record in Bucharest's residential market: the average price of a new apartment reached €2,500/sqm of usable area, following a 3% jump in December alone compared to the previous month — the fastest monthly increase among Romania's major urban centers. Over the full year, price growth reached 17% across both new and second-hand housing segments, placing the capital 3rd nationally in the ranking of price increases, according to the Imobiliare.ro Index.

Second-hand properties remain somewhat more affordable, but they too have been rising quickly. Their average listing price has reached €2,159/sqm of usable area — closing the gap with new builds, according to the same benchmark index.

Methodological note: The Imobiliare.ro Index tracks asking prices per sqm of usable area based on active listings. Other sources, such as Sonarhome, use different methodologies and may show lower average prices — the inclusion of all property types and more peripheral areas accounts for the difference.

Why Bucharest Is Rising Faster Than Other Cities

Supply is not keeping up with demand — but there are also structural factors that explain why the capital is outpacing other major cities.

New housing supply at a multi-year low. According to SVN Romania's analysis, approximately 18,000 homes were completed in Bucharest and the surrounding Ilfov county in 2025 — similar to 2024, the weakest delivery year in the past five. A shrinking stock against unchanged demand inevitably pushes prices upward.

The 21% VAT shock. From 1 August 2025, the standard VAT rate on new residential properties increased from 9% to 21%, as part of the government's budget consolidation measures. The change created a double shock: a surge of buyers rushing to close deals before the deadline, followed by a sharp drop in transactions. For an apartment priced at €100,000 (excluding VAT), the difference compared to the old regime amounts to €12,000 — absorbed either by the buyer or negotiated with the developer.

Buyers shifted to the second-hand market. This structural price increase in new homes redirected demand toward older apartments. According to SVN Romania analysts, prices of second-hand properties in Bucharest accelerated precisely because a portion of new-home demand migrated to the secondary market — with sellers of older apartments taking advantage of the moment created by the higher cost of new builds.

The 2026 Paradox: Higher Prices, Fewer Transactions

Data from ANCPI (the National Agency for Cadastre and Real Estate Advertising) at the start of 2026 confirms an unusual dynamic. In January 2026, 24,598 real estate transactions were registered nationwide — 6,236 fewer than in January 2025. Transactions involving individual residential units (apartments) fell 22% in Bucharest and 25% nationally, according to Agent Expert Storia's analysis. January 2026 marked the fifth consecutive month of decline — a trend that began in August 2025, immediately after the reduced VAT rate was eliminated.

And yet, prices have not retreated. Sellers who are not forced to sell simply choose to wait. Demand remains present — particularly from credit-financed buyers, where interest rates have started to fall. The result is a market operating at lower volumes but with sustained prices.

What's Happening With Mortgages in 2026

IRCC — Romania's variable mortgage reference rate — dropped to 5.68% for Q1 2026, down from 6.06% in the final quarter of 2025, according to CursBNR.ro. From 1 April 2026, the rate will fall again to 5.58% — the first meaningful downward trend after more than a year of elevated values.

On the fixed-rate segment, bank competition is working in buyers' favor. BCR offers a fixed rate of 4.99% for the first 3 years through its Casa Mea Natura product — applicable to homes built after 2000, with an energy efficiency certificate of class A or B (issued after 16 February 2023), provided the borrower's salary is paid into a BCR account. The standard Casa Mea product, without these conditions, starts at 5.59% fixed for 3 years. CEC Bank has a comparable offer — 4.99% fixed for 3 years, then IRCC + 2.3%. BRD offers 4.80% fixed for 3 years through its Habitat Verde product, for certified green homes. These offers are valid until 01.03.2026 and are subject to change.

The total variable rate (IRCC + bank margin) currently averages 7.56–9.56% in Q1 2026, depending on the lender and product — significantly higher than introductory fixed rates. This gap makes fixed-rate mortgages clearly more advantageous over the short term (first 3–5 years).

Price Map by District

Source: Sonarhome.ro, February 2026. Methodology: estimated prices based on active sale listings, all apartment types including peripheral areas — which is why values appear lower than the Imobiliare.ro Index, which focuses on active listings per sqm of usable area.

District 1 — €2,357/sqm (the most expensive, 37% above the city average). Premium neighborhoods such as Dorobanți, Primăverii and Floreasca frequently exceed this level.

District 2 — €1,885/sqm, ranking second by price. Central areas like Iancului and Obor exceed the district average, while Colentina remains below it.

District 3 — €1,836/sqm, with annual growth of 14.86% according to Sonarhome. The same source projects a price of €1,970/sqm by the end of 2026.

District 4 — €1,426/sqm, the most affordable district in the capital, with a month-on-month drop of 8.71% compared to January 2026 — a movement that reflects data volatility in the Sonarhome methodology rather than a confirmed market trend.

District 5 — ~€1,673/sqm (Sonarhome estimate, updated dynamically). The area covers a wide range of neighborhoods — from the Civic Center, where prices climb significantly, to Rahova and Ferentari, which remain among the most affordable in the city.

District 6 — €1,573/sqm. The M5 metro extension (Drumul Taberei line) has significantly changed the equation for this area over recent years, attracting demand from buyers focused on affordability and connectivity.

 All prices represent district averages, calculated based on active sale listings. 

What Nobody Tells You When Buying in 2026

The listing price is not the transaction price. There is genuine room for negotiation, particularly in the second-hand segment and for properties with legal or energy-related issues. Sellers anchored to peak asking prices can become flexible when the buyer arrives with pre-approved financing.

Energy efficiency directly affects your mortgage rate. As shown by offers from BCR, CEC Bank and BRD, a property with a recently issued class A or B energy certificate can unlock a rate reduction of 0.5–1 percentage point compared to the standard product — equivalent to several hundred euros per year in monthly payments.

Affordability is better than in 2008, but has deteriorated since early 2025. According to SVN Romania data, purchasing a two-room apartment (50 sqm of usable area) in Bucharest currently requires the equivalent of 96 average monthly salaries — up from 84 at the start of 2025, and from 105 in 2020, though still far below the peak of 396 average salaries recorded in 2008.

The 21% VAT has structurally repriced the new-build market. For a €100,000 apartment, the difference compared to the previous regime is €12,000. Second-hand properties sold between private individuals remain VAT-exempt — an advantage over new builds that did not exist at this scale before August 2025.

What to Expect for the Rest of 2026

The analyst consensus points to a moderation in the pace of growth compared to 2025, without actual price declines. New housing supply will remain constrained, demand will be supported by falling interest rates, and sellers have no incentive to lower prices as long as demand remains present. Significant reductions in monthly mortgage payments are projected for 2027 at the earliest, as IRCC continues its downward path.

Risk factors remain tied to the macroeconomic context: the trajectory of Romania's budget deficit, potential sovereign credit rating downgrades and political instability could all affect financing costs and investment appetite.

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