In 2023, the number of real estate transactions in the country decreased by 10%. Brasov became the main real estate market after Bucharest, ahead of Timișoara, while Cluj remained in fourth place, writes Patru Perecsi.

Real estate market. Residential building under constructionPhoto: Inquam Photos / Octav Ganea

According to data recently published by the National Real Estate Agency (ANCPI), the Romanian real estate market recorded more than 158,000 real estate transactions in 2023, a 9.6% decrease compared to 2022.

The situation is similar in Bucharest, which traditionally occupies about a third of the Romanian real estate market. Almost 49,000 transactions took place in Bucharest during the year, which is 15% less than in 2022.

The monthly data shows an interesting evolution: in the first half of the year, almost 66,500 real estate transactions took place in Romania, which is 22% less compared to the same period in 2022.

Subsequently, in the second half of the year, the number of transactions amounted to almost 92 thousand, which is more than 2% more than in the same period of 2022.

Not surprisingly, the monthly evolution was also very similar in Bucharest: the first half of the year brought almost 20,000 transactions to the capital (-27%), so that in the second half of the year, around 29,000 transactions were registered, a decrease of only 5%.

Also, both nationally and in Bucharest, December was by far the best of the year.

What is the reason for the growth in the second half of the year?

There is no official explanation for such revival of the real estate market in the second half of the year, but one of the arguments is that in August the Government announced numerous changes in the taxation of real estate transactions carried out after January 1, 2024. the most important news was the increase in the preferential VAT rate from 5% to 9%.

This reduced VAT rate applies to new homes with an area of ​​no more than 120 square meters and a price of no more than 600,000 lei (equivalent to approximately €120,000) excluding VAT, only if the buyer is a first-time home buyer. . In practice, this increase automatically means an increase in the price of houses of this category by 3.81%.

Therefore, it is not difficult to guess that some people who planned to purchase real estate with a reduced VAT rate postponed the operation to the end of 2023.

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