The premium residential market in Bucharest has experienced a price surge over the last few years, reaching record levels, particularly in sought-after areas such as Primăverii, Kiseleff, Aviatorilor, and Dorobanti. This trend results from a combination of factors influencing both supply and demand within this niche segment, according to an analysis by Cushman & Wakefield Echinox.
Over the past 2-3 years, prices for premium properties delivered after 2018 have mostly doubled, now averaging between €6,000 and €8,000 per sqm in top locations, with some properties having substantially higher asking benchmarks. There have also been specific cases where investments of millions of euros have been made solely in finishes and amenities, thus rendering it almost impossible to calculate a standard price per sqm for such unique residences.
Properties delivered over the last 8 years - ranging from apartments to villas - which have undergone complex restoration and refurbishment works, and which feature specifications such as smart home systems, automated parking ramps, lounge areas, swimming pools, and security systems, have all contributed to driving up values in this market segment.
Raluca Plavita, Head of Residential Agency at Cushman & Wakefield Echinox, said: "One of the main drivers of this price growth relates to the 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."
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 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.
