Romania's Real Estate market: Sustainable growth and optimistic prospects for 2025

Romania ended 2024 with a remarkable performance in the real estate market, confirming the growth trends recorded over the past decade. According to data from The Concept in its Q4 2024 study, which you can download here, the average price per square meter reached EUR 1,699, up 14% from 2023 and 139.6% from 2014, when the market hit its lowest point following the global financial crisis.

This increase, adjusted for inflation, represents a real-term growth of 52.1%, highlighting that price evolution has generally been sustainable and correlated with economic progress. This pace has been supported by rising incomes, access to mortgage financing, and consistent demand in the residential market.

A Decade of Growth – 2024 Marks a New Maturity Phase for the Market
In 2014, the average price per square meter was just EUR 708, reflecting a period of economic uncertainty. Over the past 10 years, the market has experienced steady growth, with moderate but consistent annual increases. Double-digit growth in 2016, 2017, and 2024 indicates phases where demand surged significantly, driven by favorable economic and social factors.
For 2024, this growth is based on several factors:
1. Rising Incomes – The average net salary in Romania reached EUR 1,059 in October 2024, while in Bucharest, it was EUR 1,321, improving housing affordability.
2. Consistent Demand in Major Cities – Cities like Bucharest, Cluj-Napoca, Iași, and Timișoara continued to attract both end-buyers and investors interested in the rental market.
3. Recovery of Mortgage Lending – In 2024, 51% of real estate transactions were financed through mortgages, marking a recovery from previous years when cash transactions dominated the market.

Purchasing Power Index Indicates a Balanced Market
A key indicator of housing affordability is the Purchasing Power Index (PPI), which measures how many net average salaries are needed to buy one square meter of housing. In Q4 2024, this index stood at:
• 1.6 nationwide
• 1.4 in Bucharest
These values indicate a stable market where salaries have managed to keep pace with price increases. Although the PPI has slightly increased compared to previous quarters, the current levels are considered affordable compared to other countries in the region.

Transaction Numbers Are on the Rise Again
In 2024, Romania’s real estate market recorded 168,960 transactions nationwide, marking a 6.6% increase compared to 2023. This recovery underscores buyers’ and investors’ confidence in the real estate market.
In Bucharest, the number of transactions reached 50,884, with an annual growth of 4.7%, consolidating its position as the main driver of Romania’s real estate market.
While Bucharest remains the leader in terms of volume, certain counties have shown remarkable performance:
• Iași: +38.5%
• Dolj: +24.7%
• Constanța: +17.8%

These increases reflect the rapid economic development in these regions, attracting both local buyers and investors.
"Romania's real estate market remains strong, and the growth recorded in 2024 is a clear sign of market maturity. If economic and social factors remain favorable, we can expect continued growth at a more balanced pace," explains Daniel Tudor, CEO of The Concept Group and CIO of Hubix Investment.
Rental Yields Remain Competitive
Another factor driving real estate investment interest is the average gross rental yield. In 2024, the most attractive yields were recorded in:
• Bucharest: 6.39% – 6.70%
• Iași: 6.18% – 5.74%
• Constanța: 5.86% – 6.45%

In cities like Cluj-Napoca, where prices are higher, yields were lower, averaging 4.26% – 4.29%. This reflects Cluj’s market maturity, which has reached a high level of development but offers limited opportunities for investors focused solely on rentals.
Outlook for 2025 – Continued Growth or Stabilization?
Given the strong performance in 2024, the outlook for 2025 remains optimistic but with a degree of caution. If global economic factors remain favorable, Romania could continue to see moderate increases in prices and transaction volumes.
However, several factors could influence the market:
1. Mortgage Interest Rates – A reduction in rates would stimulate demand, while an increase could slow down transactions.
2. Increase in New Housing Supply – If developers launch a significant number of projects, the market could stabilize, benefiting buyers.
3. Economic Growth – Market stability will depend on wage growth and overall confidence in the economy.

2024 was a positive year for Romania’s real estate market, with sustained price increases, transaction recovery, and competitive investment yields. While several factors could influence market dynamics in 2025, the overall outlook remains optimistic, pointing to continued growth as long as economic conditions remain stable.
This analysis confirms that real estate remains one of the safest investments in Romania, and current trends show the market’s ability to attract both end-buyers and investors.