Business Forum • 13 September, 2024 at 11:31 AM
In Bucharest's real estate market, the northern house segment remains one of the most dynamic and attractive, especially given the continuous increase in villa demand. Despite the challenges posed by high construction costs and a decreasing offer, the demand for housing in this area is rising.
In Pipera, an area of significant interest for villa buyers, the price of land has risen from €400/sqm in 2022 to €1,000/sqm in 2024. Even with considerable budgets, it is becoming increasingly difficult for clients to find land that meets all the criteria and expectations for a successful development.
"The high construction costs, rising land prices, and decreasing supply are putting pressure on house prices in the North of Bucharest. Many of those who were unable to purchase a property before the price increases, and who have a budget of up to €300,000, are now forced to move to the areas near Bucharest, such as Tunari, Otopeni, or Corbeanca," states Aurel Ungureanu - Customer Relationship Manager - North Bucharest Investments.
In Tunari, Otopeni, or Corbeanca, land prices have also seen a spectacular increase: from €100/sqm in 2022 to €250/sqm in 2024 - for positions with good access and good facilities.
Demand for gated residential complexes
Gated community housing developments are an increasingly popular solution for homebuyers because of their social and security benefits. They become living spaces and ideal places to develop a community.
"This type of project is a good solution to develop a social life for adults and their children. The security and comfort offered by such communities are strong arguments in the purchase decision," states Aurel Ungureanu.
Premium real estate market developments
Despite rising prices, interest in premium-plus properties in the North of Bucharest continues to grow. Demand for villas priced over €500,000 and over €1 million is growing.
"The real estate market for premium and premium plus properties is growing. The interest and high number of sales of houses priced between €500,000 and over €1 million gives us clear signals that the luxury and super-luxury segment is growing steadily, being one of the most stable niches in the residential sector," Aurel Ungureanu adds.
The Pipera-Voluntari area remains one of the most attractive for villa buyers, especially due to its proximity to prestigious schools, easy access to the Bucharest ring road and the A3 highway, and already-formed communities. Areas such as Erou Iancu are particularly popular due to their access to these facilities.
Increasing sales in 2024
Since the beginning of 2024, North Bucharest Investments has seen a significant increase in home sales, more than doubling compared to the same period in 2023.
"This positive development reflects the growing interest in villas in the North of the Capital despite economic challenges and rising prices. The real estate market in the North of Bucharest continues to offer interesting investment opportunities, especially in the segment of houses and villas", explains the Client Relationship Manager - North Bucharest Investments.
In conclusion, although land prices and construction costs are rising, demand remains robust, and the investment potential is promising, especially in areas such as Pipera-Voluntari and its surroundings.
North Bucharest Investments (NBI) is a group of companies in the residential real estate segment that operates in two business lines: investment activity and brokerage services. The NBI Group was founded in 2011 in the Republic of Moldova by businessman Vlad Musteață. Since the summer of 2022, it has also entered the Romanian market. North Bucharest Investments Group recorded over 400 real estate transactions in 2023 in new residential developments in the northern part of the capital.
The company's turnover doubled - from RON 20 million in 2022 to RON 42 million in 2023.