Invest in Real Estate in Bucharest
Bucharest property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Bucharest .
Search Map of Bucharest Investment Real Estate
Bucharest ( BOO-kə-REST, -rest; Romanian: București [bukuˈreʃtʲ] (listen)) is the capital and largest city of Romania. It is described as the cultural, financial, entertainment and media center in Romania with a significant influence in Eastern and South-Eastern Europe. It is also an influence in education, tourism, research, technology, health care, art, fashion, sports and politics in Romania. It is located in the southeast of the country, on the banks of the Dâmbovița River, less than 60 km (37.3 mi) north of the Danube River and the Bulgarian border. It is also one of the most populated cities of the European Union (EU) within city limits and the most populated capital in South-Eastern Europe. It was the capital of Wallachia from 1659 to 1859 and the capital of the United Principalities of Moldavia and Wallachia from 1859 to 1881
Bucharest was first mentioned in documents in 1459. The city became the capital of Romania in 1862 and is the centre of Romanian media, culture, and art. Its architecture is a mix of historical (mostly Eclectic, but also Neoclassical and Art Nouveau), interbellum (Bauhaus, Art Deco, and Romanian Revival architecture), socialist era, and modern. In the period between the two World Wars, the city’s elegant architecture and the sophistication of its elite earned Bucharest the nickname of ‘Paris of the East’ (Romanian: Parisul Estului) or ‘Little Paris’ (Romanian: Micul Paris). Although buildings and districts in the historic city centre were heavily damaged or destroyed by war, earthquakes, and even Nicolae Ceaușescu’s program of systematization, many survived and have been renovated. In recent years, the city has been experiencing an economic and cultural boom. It is one of the fastest-growing high-tech cities in Europe, according to the Financial Times, CBRE, TechCrunch, and others. UiPath, a global startup founded in Bucharest, has reached over $35 billion in valuation. Bucharest hosts the largest high tech summit in Southeast Europe, Romania Blockchain Summit; the Summit was postponed during the pandemic and it is not clear when the next Summit is scheduled.
In 2016, the historical city centre was listed as ‘endangered’ by the World Monuments Watch. In 2017, Bucharest was the European city with the highest growth of tourists who stay over night, according to the Mastercard Global Index of Urban Destinations. As for the past two consecutive years, 2018 and 2019, Bucharest ranked as the European destination with the highest potential for development according to the same study.
According to the 2022 census, 1,716,983 inhabitants live within the city limits. Adding the satellite towns around the urban area, the proposed metropolitan area of Bucharest would have a population of 2.26 million people. In 2020, the government used 2.5 million people as the basis for pandemic reports. Bucharest is the fourth largest city in the European Union by population within city limits, after Berlin, Madrid, and Rome, just ahead of Paris.
Economically, Bucharest is the most prosperous city in Romania and the richest capital and city in the region, surpassing Budapest a few years ago. By 2050, certain economic studies reveal the fact that Bucharest will emerge as Europe’s richest city in terms of GDP per capita, followed by Luxembourg City and Groningen. Furthermore, a new report by Grosvenor, revealed that Bucharest will already be the 3rd richest city in Europe by 2040.
The city has a number of large convention facilities, educational institutes, cultural venues, traditional ‘shopping arcades’ and recreational areas.
The city proper is administratively known as the ‘Municipality of Bucharest’ (Romanian: Municipiul București), and has the same administrative level as that of a national county, being further subdivided into six sectors, each governed by a local mayor.
The financial stability of Bucharest has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.
Buy to Rent in Bucharest
Renting out your Bucharest buy-to-rent investment property can grow wealth and income.
Whatever your goals with investment property in Bucharest are – preparation is key.
With our expert guidance, investing in Bucharest provides the secure knowledge that your money is working harder than it would in a local Bucharest bank and that future generations of your family will be left with substantial capital growth assets.
We are always happy to advise on buying investment property in Bucharest, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Bucharest property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.
Flipping Investment Property in Bucharest
Flipping property in Bucharest
Flipping property is when we advise clients to buy a Bucharest property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Bucharest market has a time to react to the renovation.
The Flipping Strategy in Bucharest
Investment property flipping in Bucharest is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Bucharest real estate investments are sometimes referred to by professionals as ‘distressed’ Bucharest real estate.
What is distressed Bucharest property:
- Bucharest property in need of renovation
- Bucharest real estate with a change of purpose and use
- Oversold Bucharest property
- Bank repossessions in Bucharest
Put simply, long term investors in Bucharest purchase the property, renovate it and make it a lot more attractive to potential buyers.
Calculate profit that you make from Bucharest investment property flipping:
Final Selling Price less Cost of Purchase less Costs = Profit
Here is an example:
Bucharest property purchase price: $220,000
Renovation costs: $20,000
Other costs: $25,000
Property sale price: $400,000
Experienced property developers in Bucharest use a minimum profit value of 22% when looking at potential Bucharest projects.
The reason for this is because there are lots that can go wrong in Bucharest property flipping and working on a potential margin of 22% should still leave a good margin of error.
Invest through a Fund in Bucharest
Property Secured Investments is a Private Equity fund that invests in Bucharest and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website
Luxury Property in Bucharest
For luxury property investors hoping to add a superb property in Bucharest to their luxury real estate investment portfolio, Physis Realty is a trusted partner.
A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Bucharest, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Bucharest should be entrusted to only the highest-quality agency.