The premium residential market in Bucharest has experienced a significant price surge over the last few years, reaching record levels, particularly in highly sought-after areas such as Primăverii, Kiseleff, Aviatorilor, and Dorobanți. This trend is the result of a combination of factors influencing both supply and demand within this niche segment.
Over the past 2 or 3 years, prices for premium properties delivered after 2018 have mostly doubled, now averaging between €6,000 and €8,000/ sq. m in top locations, with some properties having substantially higher asking benchmarks. There have also been specific cases where investments of millions of euros have been made solely in finishes and/or amenities, thus rendering it almost impossible to calculate a standard price per sq. m for such residences.
Properties delivered over the last 8 years – ranging from apartments to villas – which have undergone complex restoration and refurbishment works, and which feature exceptional specifications such as smart home systems, automated parking ramps, lounge areas, swimming pools, high-end security systems, have all contributed to driving up values in this market segment.
Raluca Plavita, Head of Residential Agency at Cushman & Wakefield Echinox: “One of the main drivers of this price growth relates to the extremely limited supply. In the past 5 or 6 years, no new developments received the necessary permits required in order to commence construction in these premium locations, and vacant land plots are virtually non-existent. The current legislation imposes strict restrictions on the demolition and conversion of older buildings in these protected areas, thus making the existing properties increasingly exclusive and difficult to replicate.”
Premium property buyers generally do not rush to close transactions, as they typically already own other residences, either in Romania or abroad, while they are searching for homes which meet specific requirements – location, larger areas, generous gardens, and high-end amenities. There are also private investors in the quest for rare opportunities or properties with rental potential for embassies or multinational companies, but they only represent a small proportion of the total buyers. As a result, the transaction process can last anywhere from 6 to 12 months.
Not all premium locations offer the same benefits or price levels. For example, although Floreasca is in the vicinity of a major office hub in the North area of Bucharest, it does not generally reach the same prices as in Primăverii or Dorobanți, except for rare and specific cases. Even within Dorobanți, its micro areas show significant price differences depending on location, year of construction, and overall building quality.