I spoke with Vlad Musteata, the founder of North Bucharest Investments, about the real estate market, how the year 2023 unfolded, what happened in December 2023, and the predictions for 2024. Additionally, the increase in VAT had an interesting impact – North Bucharest Investments had 40% more transactions in December compared to the previous month.
“We were accustomed to having a calmer period with fewer transactions in December each year. The last month of 2023 was atypical. We experienced a remarkable growth within the North Bucharest Investments company. In December, we recorded a 40% increase compared to November, and the Northern area of Bucharest was the most active in terms of sales, dominated by investors purchasing from their own funds. Anticipating a 4-percentage point increase in VAT, which was expected to add an average of over 5,000 Euros to costs, many clients were motivated not to postpone the decision to purchase a property.“
Statistical data provided on January 15th by the National Agency of Cadastre and Real Estate Advertising (ANCPI):
- Bucharest recorded a 30% increase in sales in December compared to the previous month. There were 15,454 transactions in December, compared to 11,916 transactions in November.
- The sales growth in December 2023 was significant even when compared to official data from December 2022 – a 17% increase. In December 2023, 15,454 properties were sold, compared to December 2022 when 13,254 units were purchased.
“Looking towards 2024, it is expected that these trends will continue to shape the market. The increase in VAT may initially temper demand, but in the long term, the limitation of new construction supply and favorable lending conditions will continue to stimulate the market. It is crucial for developers and investors to respond agilely to these changes, adapting to the evolving requirements of buyers.“
About North Bucharest Investments:
North Bucharest Investments (NBI) is a group of companies in the residential real estate segment, operating in two business lines – investment activities and intermediary services.
NBI Group was founded in 2011 in the Republic of Moldova by businessman Vlad Musteata, and since the summer of 2022, it has entered the Romanian market.
NBI manages the most important residential complexes in the Northern area of Bucharest, and the company’s activity differentiates itself through dedicated digital marketing services, experienced sales consultancy in selling new residential complexes, and customized communication of the portfolio’s complexes on social media, all maximizing the sales results of all residential complexes in the company’s portfolio.