VAT increase accelerated real estate transactions before the end of 2023

VAT increase accelerated real estate transactions before the end of 2023, while lower number of building permits and favorable lending conditions supported demand for existing properties.

Real estate sales saw a significant increase in the last month of last year, data from the National Agency for Cadastre and Real Estate Publicity shows. The capital saw a 30 percent increase in sales in December compared to the previous month. There were 15,454 transactions in December, compared to 11,916 transactions in November.

,,We were used to having a quieter period in December each year, with fewer transactions. The last month of 2023 was atypical. We had a remarkable development in North Bucharest Investments. In December we had a 40 percent increase compared to November, and the North area of the Capital was the most active in terms of sales, being dominated by investors buying with their own funds. Anticipating the VAT increase of 4 percentage points, which would add on average more than EUR 5.000 to the costs, many clients were motivated not to postpone the decision of buying a property," says Vlad Musteață, founder of North Bucharest Investments.