Apartments sometimes stay on the market for 67 days and prices increase by 15%. Why is this happening?
The increase in VAT and the lack of legislative predictability redraws the balance of forces in real estate. After two years of absolute dominance by developers on the Romanian real estate market, the paradigm is changing.
The increase in the standard VAT rate to 21% for new homes, combined with an increasing fiscal burden and the absence of the expected monetary relaxation from the National Bank, transfers the bargaining power to buyers in a way that the market has not experienced in recent times, according to an analysis sent to HotNews by Imobiliare.ro.
Data from the third quarter of 2025 reveal a market under multiple pressures: housing supply contracted by 18% from last year, while prices continued to rise by more than 15%. It's exactly the kind of imbalance that would normally favor sellers. But the macroeconomic context tells a different story.
In July, before the VAT increase, the market recorded a sales record. August and September brought the anticipated slowdown.
“We are talking about a period of at least two quarters in which we will see a trend of compaction”, explains Daniel Crainic, the marketing director of Imobiliare.ro, the main real estate portal in Romania.
The paradox is stark: buyers now hold the power in a market of low supply. The explanation lies in behavioral economics and financial realities. With interest rates not falling as expected and more expensive credit, well-funded developers can afford to wait, but vulnerable projects – those dependent on the pace of trading – are starting to feel the pressure, the authors of the analysis said.
How much was the square meter in Cluj, Romania's most expensive city
Polarization is visible geographically. In Cluj-Napoca, the most expensive city in Romania for real estate purchases, the average price reached 3,150 euros/useful square meter, an increase of 9% annually. But the supply of new homes fell by 23% compared to last year. The sales period decreased to 67 days, and the negotiation margin – 4.2% – is the highest among the large cities analyzed.
Brasov illustrates another dynamic.
George Șeicaru from RE/MAX Evolution observes an increase in the average sale time from 36 to 40 days for apartments. “We are not witnessing a steep decline, but a natural repositioning,” he says.
The resale segment – approximately 90% of its portfolio – proved more resilient, not being directly affected by the VAT increase.
The capital presents its own anomalies. With 30,600 properties traded in the third quarter, Bucharest registered a 7% increase compared to last year. The average price reached 2,129 euros/useful square meter (+18% annually), but the sales period – 51 days – remains the shortest in the country. The negotiation margin was reduced to only 3.6%.
What is happening with home loans?
Data from the National Bank of Romania cast another shade on reality: new housing loans fell to 10 billion lei in July-August 2025, compared to 12.5 billion in the same quarter of 2024. IRCC fell slightly to 5.55%, and the minimum fixed interest rate to 4.70%, but the effect on purchasing power remains limited.
The Imobiliare.ro analysis, based on over 250 active brokers, shows that in Cluj the average mortgage loan reached 462,179 lei, with a monthly rate of 2,538 lei – down 7% compared to last year. In Bucharest, the average loan was 432,395 lei, with an interest rate of 2,366 lei.
These figures suggest that access to finance is becoming the differentiator. Buyers who have this certainty enter the market at a favorable time: more time for analysis, more flexible owners to negotiate, and the ability to wait for the optimal moment.
The rents
While sales are compacting, the rental market is showing a different dynamic. Demand for residential rental properties increased by 18% nationally, while supply decreased by 19%. The average price rose to 550 euros/month, an increase of 6%.
A studio apartment in the capital now costs on average 390 euros/month, compared to 400 euros in Cluj. Two-room apartments reach 600 euros/month in Bucharest, compared to 590 euros in Cluj.
“Those developers with a solid reputation will survive and thrive“
For developers, the next period becomes one of optimizing cash-flow and protecting margins. Planning based on two or three scenarios is no longer optional, the cited analysis also says. We can expect a relative instability of prices: indexation followed by incentive periods through discounts, depending on the evolution of sales.
“Premium or well-positioned projects continue to sell, but supply in peripheral areas or the middle segment suffers delays. This is exactly the type of filtering that a mature market experiences before a new growth phase,” say the authors of the document.
The conclusion of the authors of the analysis is that the Romanian real estate market is entering a rebalancing phase after a prolonged period in which the developers dictated the conditions. “It is not a crisis, but a necessary correction. Those developers with a solid reputation, transparency and the courage to launch projects tailored to the real needs of the buyer will survive and prosper.”
The analysis is based on Imobiliare.ro data for the 3rd quarter 2025, ANCPI, BNR and INS. Prices are expressed in euros/square meter useful for comparability, although most transactions are carried out in lei.
