Vlad Musteață, CEO of North Bucharest Investments, spoke with Property Forum about the trends recorded in the agency’s Bucharest-based residential portfolio and its plans to expand in other Romanian cities.
What has been the volume of sales recorded by NBI in the first half of 2024?
The first half of 2024 has been exceptionally strong for North Bucharest Investments. We have recorded an average of 140 transactions per month, which underscores the robust demand in the real estate market and the confidence that buyers have in our services. This high volume of sales is a clear proof to our strategic approach and the quality of our offerings.
It is important to mention that our monthly volume of transactions is 3-4 times higher than last year, and these figures are categorically the result of the trust our clients have in us. This performance reflects not only the market’s resilience but also our ability to adapt and meet the evolving needs of our clients.
The consistent monthly sales highlight the effectiveness of our public relations and marketing strategies and the dedication of our team in providing top real estate consulting and investment services.
What is the share of investors in your sales activity in H1 2024?
During H1 2024, investors have played a significant role in our sales activity, accounting for about 60% of our transactions. This high rating indicates that investors trust North Bucharest Investments to provide them with profitable opportunities and reliable market information. Our long-term relationships with these investors are built on transparency and consistent performance.
Residential end-customers represent 40% of our total sales, and this category includes families with children as well as people who want a home in a good area well connected to transportation, educational and commercial facilities.
This balanced mix ensures that our portfolio meets both immediate residential needs and long-term investment objectives, strengthening our position as a top player in the real estate market.
How many projects does NBI have in its portfolio? Will you continue to focus on northern Bucharest or are you looking to expand in other parts of the city as well?
Currently, North Bucharest Investments has more than 60 projects in its portfolio, primarily concentrated in the northern part of Bucharest. This area is highly sought after due to its premium developments and excellent infrastructure, making it a prime location for both residential and commercial real estate investments.
However, we are actively exploring opportunities to expand our footprint beyond northern Bucharest. Cities like Brașov and Mamaia Nord are also on our radar, given their growing demand and potential for high returns. Our goal is to provide high-quality real estate solutions across various regions, meeting the diverse needs of our clients.
We are analysing the market very well and we are considering expanding the activity and the portfolio in other important cities of Romania. Iasi and Cluj are cities with a very high development potential and cities that bring significant benefits for those who want to invest in apartments and houses, both to live in them and to generate good returns from rental yields.
Residential sales have kept steady in Bucharest in the first five months of 2024 compared to the same period of last year, according to official data. What is your take on this evolution of the market?
The steady residential sales in Bucharest during the first five months of 2024 indicate a stable and resilient market. This stability is encouraging, especially after the economic fluctuations and uncertainties of recent years. It shows that buyers have regained confidence and are willing to invest in real estate again.
Moreover, the limited number of new construction permits has contributed to a tighter supply, which in turn has maintained price levels and demand. This steady demand, coupled with a controlled supply, sets a solid foundation for market growth and stability in the coming months.
What is your outlook for residential demand in Bucharest in the second half of 2024?
For the second half of 2024, we anticipate a continued strong demand for residential properties in Bucharest and in the country's big cities. The city’s growing population and the increasing need for high-quality housing options will drive this demand. Additionally, favourable mortgage rates and economic stability are likely to encourage more buyers to enter the market.
We expect a particularly high interest in premium residential units, especially in the northern areas of Bucharest. The ongoing infrastructure developments and the reputation of these areas as prime residential locations will further boost demand. Our focus will be on meeting this demand with projects that offer both quality and value.
What are your expectations regarding the pricing for high-end residential units in Bucharest?
We foresee a gradual increase in the prices of high-end residential units in Bucharest, particularly in the northern parts of the city. The demand for premium properties is high, and with the limited availability of new permits, this demand is likely to push prices upwards.
Buyers are increasingly looking for high-quality, well-located properties, which supports higher price points.
Additionally, properties purchased in the pre-launch phase often provide significant returns on investment once completed. We advise our clients to capitalise on these opportunities early to maximise their investment benefits. Overall, the market for high-end residential units looks promising and poised for growth.
How many team members does NBI have at the moment and are you looking to expand your headcount going forward?
North Bucharest Investments has very well consolidated its position in the real estate market with a team of almost 100 people, more than 60 real estate agents, 20 support staff members in departments such as marketing, finance, legal and brokerage and dozens of collaborators. The growth of our team has been essential in managing the increasing volume of transactions and maintaining the quality of our service.
In the future, we plan to further expand our team. As our portfolio and client base grows, we will need more skilled professionals to ensure that we continue to deliver exceptional service. We are committed to bringing on board the best talent in the industry to support our expansion and to deliver the highest level of quality for all of our services.
