May 28, 2023

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The luxury real estate market, in full growth in Romania. How much people pay for a home

In the midst of the crisis, the luxury real estate market is growing in Romania, experts say. In Bucharest, for example, the demand for penthouses is about 10% higher.

More and more buyers are willing to pay millions of euros for unique properties and luxury services.

More recently, there are also investors who jointly buy such homes and then rent them as hotels.

With an area of ​​more than 200 square meters and a generous terrace of more than 20 meters, a penthouse offers one of the most beautiful seafront views. It has three bedrooms and a living room with a height of six meters. The house costs about one million euros, is on the 11th and 12th floors and will be owned by 20 owners.

It is a new concept for the luxury property segment, say the developers. In such cases, the owners have the right to enjoy the apartment for about two weeks a year. The rest of the time, the house is rented as a hotel.

Bogdan Căruntu, developer: “As well as owning part of a property, which you would normally have to pay in full, which makes it quite restrictive, you get to enjoy it. It is the access of small investors to the top investment market”.

The concept of luxury real estate partitions was pioneered in the USA

The concept of luxury real estate partitions was initiated in the United States of America in the early 1990s with the aim of providing access to investment in luxury properties to those who cannot afford to buy such a property outright.

Rico Picenoni, real estate specialist: “When you share the cost of an asset with others, it could be one more person, it could be three or 20 people. You own part of that asset, you have the right to use it, and you use it when you need it. The rest of the time, someone else who needs it can use it. It can be a single house, it can be an apartment or it can be a penthouse”.

Diana Roșu, director of PricewaterhouseCoopers: “The segment is a luxury one and then the target audience is the one interested in having access to certain quality standards and the financial situation of each person is solvent to enter into such a contract without the need for financing.”

Romanians are looking for luxury real estate by the sea or in the mountains

In Romania, experts say, the average value of a partition is 32,000 euros. The biggest demands are in the tourist areas of the sea and the mountains.

In Poiana Brasov, for example, a square meter reaches 7,000 euros.

Adrian Simiuc, real estate investment consultant: “Prices are higher in the mountains. At the moment the prices start from 4,500 euros and we estimate that upon completion of the project we will go towards 6,000 euros, per square meter. A two-room apartment costs 250,000-270,000 euros, plus VAT”.

The luxury real estate market has developed in recent years in big cities as well, as happens in Cluj-Napoca or Bucharest, for example.

A penthouse close to Herăstrau Park in the Capital has an area of ​​over 300 square meters, it is sold at the price of 2.5 million euros. The floor and walls are clad in marble and ceramic.

Andra Dinu, real estate broker: “At this moment we see the northern part, towards Pipera, of Bucharest, the office buildings. It is also the reason why people want to buy a penthouse. The demand has increased, somewhere by 12-15%, but the prices have also increased to the same extent”.

Prices have increased, on average, by 18-20%, and in Bucharest a square meter varies between 3,800 euros and sometimes reaches 7,000 euros.

In Romania, the luxury real estate segment represents just under 10% of the market.

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