H1 2026: Bucharest Residential Market Rebounds as Affordability Pressures Reshape Demand
Bucharest’s residential market rebounded in Q2 2026, driven largely by buyers moving ahead of the planned VAT increase. At the same time, rising prices and affordability pressures are reshaping demand, while stronger supply is creating new opportunities for developers.
Bucharest’s residential market saw a strong rebound in Q2 2026, with transactions reaching 2,234, up 8% year-on-year. The increase was largely driven by buyers bringing forward purchases ahead of the planned VAT increase to 21%, meaning activity is expected to normalize in the second half of the year. Affordability pressures remain a key factor, with lower purchasing power increasingly supporting rental demand.
Residential supply also rebounded strongly, with deliveries reaching 1,875 units in Bucharest and 3,095 units in Ilfov in Q2 2026, representing significant year-on-year increases in both markets. The report points to a larger year-end pipeline, suggesting that supply will continue to expand. At the same time, selling prices continued to rise, increasing by 21.3% compared with Q2 2025 and by 5.4% since the beginning of 2026.
Prices and rents increased mildly across Bucharest’s sectors, with Sector 1 remaining the most expensive residential submarket at €3,810/sqm for sales and €18/sqm/month for rents. While price growth is supporting market resilience, increasing price sensitivity and demand for energy-efficient homes are becoming increasingly important. Against this backdrop, professionally developed, differentiated and income-generating residential products are likely to benefit from changing buyer and tenant preferences.
Head of Living
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