Thursday, 30 October 2025
CIJ EUROPE sat down with Vlad Musteata, CEO of North Bucharest Investments (NBI), to discuss the company’s record-breaking year, the impact of VAT changes, the growing buy-to-let segment, and what lies ahead for Bucharest’s residential market.
Q: North Bucharest Investments has reported record transaction volumes in 2025. How do these compare with official ANCPI figures, and what is the breakdown between new builds, resales, and typical unit sizes in North Bucharest?
Vlad Musteata: It has been a remarkable year, though not without challenges. The spring elections slowed investor decisions for a few months, but by mid-year we saw renewed activity, especially in Pipera. July was extraordinary due to the announced VAT changes. In just ten days, our legal and notary teams worked late into the night to finalise contracts, as buyers rushed to secure deals before 1 August.
Roughly 80–85% of our transactions are apartments in Pipera, priced between €90,000 and €150,000. Another 10–15% are higher-value units in areas like Fabrica de Glucoză, ranging from €150,000 to €250,000. Since September, we’ve also closed several deals in the €400,000–€1 million range, showing a renewed trust from larger investors.
Q: July saw a spike in sales linked to the VAT change. How much of this demand was policy-driven, and do you expect momentum to continue?
Musteata: Policy clearly played a big role. Many families who had been considering purchases for one or two years acted immediately, often making decisions within a week. By August, much of the inventory below €120,000 had disappeared. Since then, demand has shifted slightly toward larger, more expensive apartments in the €140,000–€150,000 range. July alone brought nearly 190 transactions for us, an exceptional result.
Even after the VAT-driven rush subsided, we noticed that the sense of urgency remained. Buyers are now more aware of how fiscal policy can influence timing, and that’s led to faster decision-making overall. The market has matured—clients are better informed, and financing institutions have become more agile in processing requests.
Q: NBI has also launched a rental division. How is the buy-to-let segment performing in terms of yields and demand?
Musteata: Investor demand for rentals is strong, especially in Floreasca and Fabrica de Glucoză. Many prefer to hold properties long-term, confident they will appreciate significantly over the next five years. Our rental management service emerged naturally from client requests—we assist with furnishing, tenant sourcing, and aftercare.
Current yields are in the 7–8% range, but the real attraction is capital appreciation. In northern Bucharest, values have been rising around 15% annually, which is unique in Europe right now. Tenants are typically young entrepreneurs reinvesting in their businesses, top managers from multinational companies, and foreign professionals starting operations in Romania.
What’s interesting is that the rental market is becoming more structured and transparent. Investors now expect professional management, digital contracts, and consistent reporting. At NBI, we use digital tools to monitor occupancy, yield performance, and maintenance, giving clients real-time visibility on their assets
Q: Younger generations in Europe often prefer renting to ownership. Are you seeing this trend in Bucharest?
Musteata: Absolutely. Younger people—especially those in their twenties and thirties—are financially better educated than previous generations. Many prefer flexibility, choosing to rent while focusing their resources on business or personal growth. For property owners, this is positive, as demand for quality rental apartments continues to grow.
We’re also seeing lifestyle-driven choices. Younger professionals value location, amenities, and interior design more than ownership status. This shift is gradually pushing developers to create more mixed-use projects with community spaces, co-working areas, and green zones—something we actively promote to our partners.
Q: Compared to other cities in the region, how do you see Bucharest’s pricing and opportunities?
Musteata: If you compare with markets like Chișinău, where new builds in good areas are already priced at €5,000–€7,000 per square metre, Bucharest still offers opportunities. Current prices in areas like Pipera and Floreasca are far lower than what the fundamentals suggest. In my view, over the next two years many of today’s opportunities will disappear as supply remains limited and construction costs rise.
Bucharest also benefits from a unique mix of local and foreign capital, which creates liquidity and resilience. Compared to Central Europe, our market still offers better value per square metrerelative to average income. That gap will likely narrow as Romania continues to attract multinational employers and high-skilled professionals.
Q: Looking ahead, what is your outlook for the Bucharest residential market over the next three years, and how is NBI positioning itself?
Musteata: I expect residential prices in Bucharest to grow by around 20% per year over the next three years, driven by limited supply and steady demand. The biggest risk is the low number of new permits being issued, which could further restrict supply.
At NBI, our goal is to raise standards in brokerage by providing transparency, legal due diligence, and after-sales support. We see ourselves not just as brokers, but as long-term partners—helping clients with rental management, resale strategies, and ensuring they benefit from appreciation in the years to come.
Q: Finally, what is your biggest concern at the moment?
Musteata: My only real worry is the slowdown in new residential projects. If the pipeline of permits doesn’t improve, prices will rise quickly, reducing affordability and limiting options for buyers. That said, Bucharest still has strong fundamentals, and we remain optimistic about the market’s growth trajectory.
I would also mention the importance of sustainable urban planning. A strong and active partnership between developers and local authorities—focused on transport, green areas, and utilities—is essential to ensure balanced urban growth. At NBI, we advocate for a long-term vision where residential expansion goes hand in hand with infrastructure and quality of life.
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