Although most investors perceive Bucharest as cheap, the city does have its luxury properties. The current most expensive apartment in Bucharest costs a whopping $3,800,000 and can make even the most exuberant buyer blink.
The apartment is located on the 4th floor of a 5-floor building and includes 7 rooms and 5 bathrooms. A total living area of 450 m2 is more than generous given the fact that typical block apartments rarely manage to go past 100 m2. The penthouse is fully furnished with the best materials, and the price reflects that no compromises were made here. The offer also includes 3 parking spaces. Because it was built in 2011, the structure is in line with more recent building codes and offers a guarantee of safety and reliability.
There is no surprise that the most expensive real estate intended for a single family is located in the Primăverii Neighborhood, in the northern part of the city. The area managed to build quite a reputation for itself and accounts for an important percentage of the total price. Primăverii was established as a retreat for the wealthy and privileged since Communist times. Even now, the elite of the Romanian society can be found here. Entrepreneurs, specialists or even showbiz personalities appreciate the advantages offered by the neighborhood. A quick stroll through Primăverii makes most think of prime residential areas from cities like Berlin or Vienna.
Located on a small peninsula that protrudes in Floreasca Lake, the property offers a magnificent view of Bordei Park and is minutes away from Bucharest’s biggest park, Herăstrău. However, a quick tour of the horizon can confuse the ones not familiar with the cityscape. Because all of the adjacent properties have generous green spaces, the building appears to be a “relic” of urban development surrounded by green. Primăverii is an oasis of tranquility that has nothing to do with the noise, pollution, and overall commotion that is characteristic to the vast majority of other areas. The low density of constructions, as well as the small height regime highlights that quality reigned over quantity here.
The apartment is clearly not for those that like to depend on the public transportation system. The 12-minute walk separating it from the nearest metro station and the absence of nearby bus stations come as advantages. The street is closed to non-residents. However, the location offers a quick gateway from the city because of its north position.
Selling the most expensive apartment in Bucharest was a job left at the hands of Coldwell Bankers. As of February 2017, the property is still available for sale, and given the growing demand felt on the market, the price will most likely see a steady rise in the future.
While the real estate market has been stagnant for the last couple of years with little to no action being registered, 2014 brought a huge change in the market with 2015 leading the way to more development. While condominium sales have had a small yet steady rise since the end of the financial crisis, land sales have plummeted, with little demand for residential or industrial properties being the main reason.
A recent analysis on the state of real-estate industry has shown that the past two years have seen a resurgence of vacant lots demand; suitable for condo or individual home builds. The study tracked online searches for vacant lots as well as price oscillations in the past 12 months for lots found at the edges of Romania’s big cities.
Demand for this market segment grew as a whole with prices remaining pretty much stable, the only exception being noticed for medium priced lots which registered modest growth.
At the edge of most of Romania’s major cities land price is generally under 50 euros per square meter. The price goes for lots outside Bucharest as well which was known to have a significantly more expensive market than the rest of the country.
Iasi, one of the largest cities in the country after Bucharest and the largest in the historic region of Moldova has registered the most significant growth in terms of online popularity for vacant lots since the spring of 2014. The number of online searches has grown by a whopping 183 percent even though actual demand is still rather low. Prices have varied by only 1 percent with the smallest asking price per square meter being found in the Popas Pacurari area at 8 euros per square meter.
Vacant lots in Bucharest and its surroundings have registered on online growth of 79 percent in the last year, being the second in terms of growth. Demand has also grown by a significant amount, being the largest in the country in the country with 78 percentage points larger than the following city, Brasov. Prices have stayed pretty much the same with an increase of just 2 percent. Prices start from 45 euros per square meter on lots 900 square meters in size located in the Militari-Chiajna neighborhoods.
In Brasov, one of the major tourist hotspots in the country demand stayed relatively low at 18 percent while online searches grew to the second spot after Bucharest. Brasov was the only market where prices went down with a decrease of approximately 11 percent.
A good neighborhood doesn’t just improve the day to day life of its inhabitants but also guarantees that their property will maintain its market value or even increase it. It also guarantees that said property can be sold for a profit, regardless of market conditions or demand levels.
Despite popular belief, a good neighborhood isn’t necessarily a centrally located one or an exclusive and detached one either. A good neighborhood can be called that when it has shown consistent good value for sellers, better than median value, regardless of market conditions.
The time-old real-estate saying “Location, location, location” is as accurate as ever and is certainly the motto that most successful investors follow when buying property, be it in the form of apartments, houses or land. While price is also an important factor, a good price in a bad area can quickly lead to a failed project or reduced profits in the long run.
Real estate experts say that while price is the most important aspect for customers, they should consider the state and location of the property equally important. Even the communist neighborhoods can be considered premium if they can compensate the quality of the architecture with other factors such as parks, good schools, safety and good infrastructure. A good neighborhood isn’t necessarily an exclusive one, or one dedicated to high net worth individuals. Certain communist built neighborhoods registered great transaction rates even during the toughest period of the financial crisis.
Real estate agents generally give the 1 Mai to Mihalache Bulevard example which mixes older buildings with communist condominiums. The good mix of middle and upper class inhabitants, numerous parks, good accessibility to the center of Bucharest as well as numerous public transport routes make it a great investment. The fact that apartments have been sold even during the toughest years of the financial crisis in the area is also an argument that real-estate agents frequently mention to potential buyers. Numerous other sectors and regions in the city have reduced prices and still haven’t managed to sell during low market conditions due to low demand; this is not the case for the 1 Mai – Mihalache Boulevard zone.
Newly built residential areas are controversial as some lack the quality of life, commercial diversity or infrastructure and proximity to the city-center that older neighborhoods have. This isn’t always the case as some projects have grown into well-developed neighborhoods which thrive on the larger and newer look of their buildings.