Some 70% of expat managers and foreign diplomats come to Romania with their families, so they prefer to settle in northern Bucharest for the large parks and green areas, access to international schools and kindergartens, and the availability of premium apartments.

The Floreasca, Dorobanti, Kiseleff-Aviatorilor, Primaverii, Soseaua Nordului-Herastrau, Baneasa, and Pipera areas in northern Bucharest are in high demand for rentals among expats. The demand for rental properties in these areas increased by 7% for apartments and by 5% for villas, in 2015, according to real estate consultancy firm Nordis. Most expats look for three- and four-room apartments (2 and 3 bedrooms).

“The most wanted area remains Soseaua Nordului – Herastrau, due to its location near the Herastrau Park, and relatively short distance to schools, shopping centers, and the city center,” said Emanuel Postoaca, General Manager with Nordis.

Expats generate 70% of the rental demand for premium houses while Romanians only account for 30%. According Nordis, 41% of the premium tenants in Northern Bucharest seek for 3-room apartments (2 bedrooms), 30% want 4-room apartments (3 bedrooms), and 23% are interested in 2-room apartments (one bedroom).

Almost half of premium apartments’ tenants in Northern Bucharest have a budget of EUR 1,000 – EUR 2,000, 38% have a budget of under EUR 1,000, and 18% are willing to pay more than EUR 2,000.

The rent levels range between EUR 650 and EUR 900 for 2-room apartments, EUR 800-2,100 for 3 rooms, and EUR 1,000-3,700 for 4 rooms. Penthouses rent for EUR 2,500 to as much as EUR 7,000.

The premium property buyers in northern Bucharest are mostly Romanians, but the share of foreigners who buy increased to some 20% this year. Most of the foreign buyers are investors who want to put them up for rent, as opposed to Romanians who buy the apartments for their own use.

Transactions of 3-room apartments have represented almost half of the purchases made on the premium market in Bucharest in the last year.

When it comes to the budgets allotted for buying such new, premium houses, most of them (60%) are between EUR 100,000 and EUR 250,000. Only 13% of the buyers are willing to spend over EUR 400,000.

Romanian businessman Emanuel Postoaca founded Nordis group in 2008. The group consists of three companies: Nordis, Nordis Administrare, and Nordis Investments.

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Irina Popescu, irina.popescu@romania-insider.com