Old Romanian Apartments Outprice New Ones Despite VAT Hike

Despite a recent VAT increase on new properties, older apartments in Romania continue to command higher prices per square meter than newly built ones. This trend is particularly pronounced in major cities like Bucharest, where older units are priced approximately 14% higher.

In Bucharest, the average price for a new apartment is 1,982 euros/sqm, while older apartments average 2,260 euros/sqm. This difference of 278 euros/sqm highlights a paradox in the real estate market, where older properties have seen their average asking prices decrease by 2% over the past year, while new ones increased by 7%.

Experts attribute this persistent premium for older apartments to their prime locations. Many older buildings are situated in established, well-connected areas with easy access to public transport, schools, and commercial centers. In contrast, new developments are often located in developing or peripheral zones, making the established convenience of older properties a significant selling point for buyers, even at a higher cost per square meter.

For prospective buyers with a budget of 100,000 euros, the market offers limited options in many cities, often restricting choices to small studios or compact two-bedroom apartments. The analysis is based on asking prices listed on the Storia platform, not final transaction prices.