Bucharest housing prices double, in certain areas, in past five years

Business Forum
The average selling price for new homes in Bucharest has increased by over 50% in the last five years, from €1,480 per sqm to €2,273 per sqm. During the same period, average rent rose by 45%, from €8.6 per sqm per month to €12.3, according to research by iO Partners Romania.

The data reveals a dynamic market with significant variations between neighbourhoods. Some areas have seen price growth far exceeding the average: in Pipera-Voluntari, prices doubled during this period, while areas like Cotroceni and Popești-Leordeni grew by over 80%. At the opposite end, neighbourhoods like Unirii or Romana were limited to growth of around 30%.

For rentals, Dorobanti-Floreasca and Pipera Voluntari lead the rankings with increases of almost 90%, while Giurgiului and Crângași experienced more modest growth of approximately 20%. With an average rental yield of 5.3%, Bucharest ranks in the upper range compared to other countries in the region (Warsaw 6.5%, Prague 3.5%, Budapest 5%, Vienna 3%).

"Even though yields appear moderate at first glance, the local residential market still offers a safe and attractive environment for investors. Semi-central areas and the northern zone remain reference points, with constant appetite for quality housing and long-term tenants," said Andreea Hamza, Head of Residential Advisory iO Partners Romania.

An overview of the residential market in 2025 highlights a visible transition from intense activity before fiscal and legislative changes (VAT increase and uniformisation, Nordis Law) to a period of slowing demand. Residential demand had a predominantly downward evolution compared to the previous year, marked by volatility and general caution among buyers. However, prices continued to rise, even in the last quarter of the year, with housing prices increasing by 18% in 2025 compared to the previous year.

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