However, adjusting for inflation shows a more moderate increase of 52.1% over the last 10 years and 8.5% in the last year, indicating a market with a sustainable development. These data suggest that although price growth appears steep, in reality housing affordability has remained more stable than one might think.
"Over the past year, demand has remained high, particularly in the big cities, and the pick-up in lending has fueled price growth. Despite economic challenges, real estate remains a reliable investment asset," said Daniel Tudor, CEO The Concept Group and CIO Hubix Investment.
For 2025, the real estate market could be influenced by new factors such as monetary policy and interest rate dynamics. However, long-term trends point to overall stability with a balance between price growth and housing affordability.
Rising transactions in big cities change market trend
After a more subdued 2023, Romania's real estate market rebounded strongly in 2024, with 168,960 transactions of residential units, up 6.6% from the previous year. Bucharest recorded 50,884 transactions, up 4.7%, while cities such as Iași (+38.5%) and Constanța (+17.8%) reported spectacular increases.
This rebound is underpinned by a combination of residential demand and increased access to finance. Mortgage transactions have returned to 51% of the total after a period when cash purchases dominated the market.
"We are seeing a clear trend of growing appetite for housing, particularly in cities where infrastructure and economic opportunities are developing rapidly. The increase in transactions in Iași and Constanța confirms that these cities are becoming increasingly attractive to buyers," explains Daniel Tudor.
This development demonstrates that the Romanian real estate market is maintaining its attractiveness, with significant differences between cities, which offers multiple opportunities for investors and buyers.
Returns in 2024 and outlook for 2025
Investing in real estate continues to be a solid option for Romanians, and data for Q4 2024 confirms this. Gross rental yields vary significantly across cities, with Bucharest remaining the leader with 6.39% for studio apartments, 6.63% for two-bedroom apartments and 6.70% for three-bedroom apartments.
In regional cities, yields are mixed. Constanța offers yields between 5.86% and 6.45%, benefiting from seasonal demand and developing infrastructure. Iași remains attractive to investors, with yields of 6.18% for studio apartments and 5.74% for two-bedroom apartments, thanks to economic growth and demand from the academic area. On the other hand, Cluj-Napoca continues to have the lowest yields, with about 4.26% for studio apartments, in the context of high prices.
"The rental market remains solid, but we see significant differences between cities. Investors looking for high yields should carefully analyze the evolution of rents and watch out for growing cities such as Iași and Constanța," explains Daniel Tudor.
In 2025, trends in the rental market will be influenced by the demand coming from the young professionals and students segment, as well as economic changes that could affect prices and profitability of real estate investments.
