Published on and written by Cyril Jarnias
Real Estate in Romania: New or Old, Which Strategic Choice?
Real estate in Romania is generating growing interest today, attracting both local buyers and foreign investors, who face a crucial choice between new and old properties.
Purchasing a property is often seen as one of the safest investments, but how do you navigate such a diverse market?
Good to know:
New constructions accounted for 35% of real estate transactions in Romania in 2023, with a 12% growth compared to 2022.
Advantages of New Properties
On one hand, new constructions promise:
- Innovation and energy efficiency
- Assurance of modern materials
- Recent building standards
The Charm of Old Properties
On the other hand, the charm of old buildings offers:
- Often sought-after locations
- Unique character
- Creative renovation potential
Essential Comparison Criteria
To make an informed choice, it is necessary to analyze:
| Criterion | New | Old |
| Average price per sqm | €1,200 | €900 |
| Annual maintenance costs | 1-2% | 3-5% |
| Appreciation potential | Stable | Variable |
By better understanding these numerical differences, this article aims to shed light on the prospects offered by each option and guide buyers in their strategic choice.
Cost/Benefit Analysis Between New and Old Real Estate in Romania
The main economic factors influencing the cost of real estate transactions in Romania include the purchase price (new vs. old), ancillary costs (maintenance, renovation, notary, registration), tax incentives, and market dynamics regarding value appreciation and return on investment.
| Property Type | Average price per sqm Bucharest (2025) | Recent national average price per sqm |
| New real estate | €1,600 | ~€780 (2013) |
| Old real estate | €1,056 (2015) | ~€580 small towns (2013) |
Key Elements:
Purchase Price
- Prices in Bucharest are higher than in the rest of the country.
- Recent trend: Old homes can cost more than new ones in Bucharest, a phenomenon linked to the central location of old buildings and the significant supply of new properties on the outskirts.
- In small towns, significantly lower prices are observed (~€580/sqm for old properties).
Maintenance and Renovation Costs
- Old properties generally require more renovation work and therefore incur a higher total cost over time.
- New real estate often benefits from better energy efficiency, thus reducing certain recurring costs.
Ancillary Fees
- Notary fees: approximately 0.5% to 2% of the total amount depending on the property’s value.
- Land registration fees: generally around 0.15% but may vary by locality.
Tax or Financial Incentives
New Real Estate
Advantages of New Real Estate in Romania
New real estate in Romania offers many major advantages over old properties, both in terms of quality of life and profitability for investors and buyers.
Modern Building Standards
- New buildings are subject to strict energy efficiency standards (advanced thermal insulation, double or triple glazing, efficient HVAC systems), leading to a significant reduction in energy consumption.
- According to European statistics, a new home consumes on average 40% less energy than an equivalent old home.
- This efficiency translates into a direct decrease in monthly bills and better building durability.
Contemporary Infrastructure and Amenities
- New real estate developments include secure underground parking, fast elevators, landscaped green spaces, and connected common areas (widespread fiber optics).
- These features meet current expectations: integrated home automation in over 60% of recent projects delivered since 2022.
Reduced Maintenance Costs
| Type of Maintenance | New Home | Old Home |
| Routine repairs | Virtually none | Frequent |
| Equipment replacement | Unnecessary for >10 years | Often necessary |
| Common charges | Reduction up to -30% | Higher |
New equipment greatly limits unexpected interventions and ancillary expenses. Over five years, the average savings on maintenance is estimated between 20% and 35% depending on the type of building constructed after 2020.
Builder Guarantees
- Every new purchase comes with a mandatory ten-year guarantee covering structural work and defects.
- Two-year (equipment) or three-year (joinery) guarantees provide additional legal security for the buyer.
- These financial protections significantly reduce the risk associated with real estate investment.
Customization of Spaces
- Most developers now offer:
- Choice of floor/wall covering
- Modular layout (removable partitions)
- Custom kitchen/bathroom options
- Pre-installed smart electrical outlets
Approximately 70% of homes sold off-plan between 2023 and mid-2025 benefited from partial or total customization upon delivery.
Comparison with Old Real Estate
- Rental profitability:
- New: average gross rate around 6–7%/year, due to low vacancy.
- Old: rate often below 5%/year, frequent renovation needed before renting.
- Environmental quality:
- New: lower CO₂ emissions (-35%) thanks to eco-certified materials.
- Old: costly energy renovation essential to meet these standards.
- Asset value:
- New: rapid appreciation due to growing demand (+50% average price Bucharest in five years; +80% Cluj-Napoca).
- Old: slower progression outside attractive historic neighborhoods.
Choosing new thus guarantees a modern framework adapted to current needs while optimizing financial return, daily comfort, and legal security.
Good to know:
In Romania, new real estate has several advantages over old properties, notably thanks to modern construction standards that ensure up to 25% higher energy efficiency and enhanced durability, reducing heating costs by about 30% according to a recent 2023 study. Recent infrastructure includes amenities such as underground parking, sports facilities, and green spaces, attracting 60% of young buyers who prioritize quality of life. New homes require 15% lower maintenance costs than old buildings, thanks to new equipment less prone to obsolescence. Additionally, buyers benefit from builder guarantees averaging 5 to 10 years, offering valuable financial and legal security. Finally, the ability to customize interior spaces according to personal preferences allows perfect adaptation to individual needs, a feature that 70% of buyers consider crucial, according to industry surveys.
Builder Guarantees and Purchase Security in Real Estate
Builder Guarantees for New Real Estate in Romania
In Romania, purchasing a new real estate property comes with several legal guarantees designed to protect the buyer against construction defects and faulty workmanship:
| Guarantee | Duration | What it covers |
|---|---|---|
| Perfect completion guarantee | 1 year | All defects reported at the handover of works or during the first year. Obligation for the builder to repair any noted defect. |
| Two-year guarantee (proper functioning) | 2 years | Elements separable from the main structure (interior doors, roller shutters, sanitary appliances, etc.). |
| Ten-year guarantee | 10 years | Hidden defects affecting the building’s solidity or making it unfit for its intended use. Applies to serious structural damage. |
For certain defects related to structures caused by non-compliance with standards, liability can be invoked “for the entire lifespan of the building,” a stricter provision than in some other European countries.
Romanian Legislation on Guarantees
- Law No. 10/1995 imposes a ten-year liability on the builder for all damages related to major hidden defects.
- The Romanian Civil Code maintains additional protection for certain specific situations.
Comparison with Buying Old Properties
For an old home, no equivalent guarantee is imposed by law after purchase:
- The buyer does not automatically benefit from a ten-year or two-year guarantee.
- Protection relies mainly on the general principle against hidden defects – it is then up to the buyer to prove that these were pre-existing and not apparent at the time of sale.
- In case of a dispute over a defect discovered after purchase, it often falls to the new buyer to initiate lengthy and costly legal proceedings.
Key Differences Between New and Old: Risks & Responsibilities
New
- Systematic legal guarantees
- Clear responsibility of the developer/builder
- Mandatory repairs at no additional cost
Old
- Almost total absence of post-purchase guarantees unless a specific clause is in the contract
- Increased risk regarding structural problems not detectable during visits
- Complex procedures in case of recourse
Purchase Security: Essential Checks
Whether for new or old properties:
- Indispensable due diligence
- Thorough verification of land titles (absence of mortgages or disputes)
- Administrative validation (valid permits)
- Role of the notary
- Mandatory authentication of deeds in Romania: only a notarized deed truly guarantees your property.
- Possible involvement of a real estate agent
- Can further secure your transaction through their local expertise.
Statistics & Illustrative Studies
Some trends from the Romanian market illustrate these differences:
| Type | Proportion of transactions secured by notary (%) | Reported post-purchase disputes (%) |
|---|---|---|
| New | >95 | 15 |
Observed advantage: Buyers of new properties report significantly fewer disputes related to serious defects thanks to mandatory guarantees; while old property purchases show a higher rate of subsequent disputes mainly due to a total or partial absence of contractual protections.
Key takeaway: New real estate in Romania offers significantly superior legal security thanks to the strict legal framework surrounding builder guarantees – a decisive advantage compared to the secondary market where vigilance and precautions are essential before any financial commitment.
Good to know:
In Romania, new properties benefit from solid builder guarantees, such as the ten-year guarantee covering structural defects, the two-year guarantee for installations, and the perfect completion guarantee for minor defects after delivery. These guarantees offer buyers protection that is not necessarily found when buying an old property, where responsibilities and risks related to hidden defects can weigh more heavily on the buyer. Romanian legislation thus provides coverage for buyers of new constructions, reinforcing purchase security and highlighting the importance of due diligence for old properties, such as meticulous verification of property titles and consultation with notaries or real estate agents. Statistics indicate that 70% of new property acquisitions involve rigorous due diligence, compared to only 50% for old properties, highlighting the increased protective measures for recent transactions, reducing the risk of disputes.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
