Romania's residential market experienced a significant surge in July, with a record number of apartment sales recorded in Bucharest and other major cities.
This acceleration was driven by buyers rushing to finalise transactions before the reduced VAT rate was eliminated and the standard VAT increased from 19% to 21% starting August.
In Bucharest, over 5,000 apartments were sold, marking the third-best performance in the last two and a half years, according to a Colliers Romania analysis. Nearly half of these transactions took place in Districts 3 and 6, solidifying their status as key residential development hubs.
Cluj-Napoca also saw a record month, with over 1,000 transactions, the highest level in three and a half years, confirming the market’s upward trend. In contrast, Timișoara saw only a slight increase in sales, while Iași experienced a notable slowdown.
Gabriel Blăniță, Associate Director | Valuation & Advisory Services at Colliers Romania, said: "This mechanism created a window of opportunity for both buyers and developers, speeding up negotiations and the signing of agreements ahead of the deadline to avoid the additional costs generated by the VAT increase," he said.
"This shift in timing triggered a sudden wave of interest and significantly accelerated the pace of transactions, demonstrating the market’s ability to respond swiftly to new fiscal conditions."
The majority of buyers in July were individuals purchasing a home for personal use rather than investors, as the law has limited the reduced VAT rate to the acquisition of only one property since 2023. While the exceptional peak in July may be a one-off in the short term, developers are adapting to the new conditions.
Some have announced they will absorb part or all of the VAT increase until the end of the year to maintain the appeal of their projects and sustain sales momentum.
