ARTICLES LABELLED WITH TAG VAT

After several years of record demand, Romania's residential market entered 2025 in a cooling phase, marked by cautious buyer sentiment. Consumer confidence recorded the steepest half-yearly decline since the 2009-2010 crisis, excluding the temporary pandemic shock when optimism quickly rebounded, according to Colliers consultants. They note the deterioration runs deeper and is expected to last longer, fueled by labor market slowdown, political instability and fiscal changes eroding purchasing power.

The residential market in Bucharest returned to a rhythm more in line with previous years, following the record-breaking July, according to an analysis of Fortim Trusted Advisors.

Romania's residential market experienced a significant surge in July, with a record number of apartment sales recorded in Bucharest and other major cities.   

The increase in VAT to 21% for new homes is having a direct impact on pricing and sales strategies in the residential market, with effects already becoming visible, according to Valentin Neagu, Managing Director at Crosspoint Real Estate.

Buyers of homes in Romania with a price of maximum €140,000 will pay a VAT of 5%, extending a facility that was applicable up to now only for residential units with costs up to €90,000, according to a government decision.