How to tell if an apartment’s price is fair, not just a “market price”

Why the “market price” is not always the right price

In Romania, discussion about housing revolves almost exclusively around the price asked by the seller. The problem is that in a market with relatively limited supply and many owners who are not in a hurry to sell, the “market price” shown in listings does not necessarily coincide with the fair price, meaning the level at which there is a high probability that the deal will close within a reasonable time.

The Imobiliare.ro Index shows that, at national level, the average asking price for apartments approached 1,700 euro/sqm usable in 2024, and in București it exceeded 1,750 euro/sqm usable, with a moderate upward trend in 2025–2026.1,2 BNR confirms that the dynamics are driven mainly by the new-build housing segment, with annual growth rates significantly higher than on the old stock market.3

At the same time, ANCPI data show considerable fluctuations in the number of transactions in the major cities, indicating “blockage” episodes in which prices continue to rise but the number of buyers willing to pay those amounts declines.4 In such periods, the risk of overpaying or listing at an unrealistic price is much higher.

The “fair” price of an apartment is not the average in listings, but the range in which transactions actually close, adjusted for year of construction, floor, area and the actual condition of the dwelling.

How to use price per square meter without falling into the trap

The first instinct of any buyer is to divide the asking price by the usable area and compare it with an “average price per sqm”. It is a good starting point, but not the finishing line.

The Imobiliare.ro Index gives you average values per city, neighborhood and sometimes per apartment type, updated monthly based on asking prices in listings.1,2,5 For example, București has a clearly higher average level than the national average, and cities such as Cluj-Napoca or Timișoara can exceed these values, while Iași or other university centers are below them.3,4

To use price per sqm effectively:

• Always compare with the average for the NEIGHBORHOOD and for the TYPE of apartment (studio, 2 rooms etc.), not with the citywide average.
• Calculate both the price per usable sqm and per total sqm (including balcony and terraces), as many sellers “inflate” the area by using the built area.
• Bear in mind that listing prices are generally 3–10% above actual transaction prices, depending on the city and the phase of the market cycle. The difference is seen indirectly in BNR reports and in statistics on the number of transactions and affordability.3,6

An additional indicator is medium-term evolution. Statistical series such as those used by BNR and aggregated by research platforms show that in recent years, housing prices in Romania have increased on average by about 5–7% per year, with higher rates in large cities.3,5,6 If the apartment you are analyzing is listed 15–20% above the area average in a single year, you already have a warning sign.

Floor, year of construction and building condition: a key “correction factor”

Two apartments with the same area and in the same neighborhood can have very different values depending on the floor, year of construction and quality of construction. BNR reports show that new-build homes have recorded in recent years significantly higher price growth rates than old ones, which also indicates a clear buyer preference for recent projects.3,6

To adjust the price correctly:

• Year of construction: old buildings (especially before 1977) may rightly be discounted compared with the area average, due to potential structural issues and low energy efficiency. Buildings from 1980–1990 and those from the 2000s, if well maintained, tend to be closer to the current average. Very recent projects in good areas usually justify a price premium.
• Floor: the ground floor and the top floor are generally less in demand, which should be reflected in a lower price per sqm than the building average. Intermediate floors, with good orientation and natural light, usually sell at the highest prices.
• Condition of the building and common areas: a modern lift, renewed utilities, insulated façade and a well-kept appearance justify a price close to or even above the area average. A run-down building, with leaks or problems in the basement, calls for a substantial discount.

In its financial stability reports, BNR emphasizes that quality differences between new and old dwellings and between major urban areas and the rest of the country are widening, which means that the “average price per sqm” is increasingly less representative for a specific home.3,6

Area, access to infrastructure and local market dynamics

The area is probably the most important determinant of an apartment’s value. Market reports show major price differences even within the same city, depending on distance to the center, access to the metro or other public transport, proximity to offices and universities.1,3,5

A few concrete benchmarks for evaluating the area:

• Check the Imobiliare.ro Index or the quarterly Market 360 reports to see the average price in the neighborhood and how it has evolved over the last 1–3 years.1,2,5
• Check in the economic press and in ANCPI releases the dynamics of transactions in your city: a strong decline in volume, accompanied by rising prices, signals a potential imbalance between demand and supply.4,6
• Analyze the infrastructure: access to public transport, schools, parks, shopping centers. Well-connected areas with good public services tend to maintain their value better over time and can more easily sustain price increases.

One example: in 2025, București recorded one of the largest annual increases in the average apartment price among major cities, about 20%, according to an analysis based on asking prices in listings. At the same time, cities such as Iași remained, for new-build homes, at significantly more affordable levels, around 1,800–1,900 euro/sqm usable.4 An apartment in București listed at a price close to that in Cluj or above cities with very high demand should be analyzed critically, even if “that’s what’s being asked in the area”.

How to use comparable listings to verify a price

Comparable listings are the most accessible tool for a buyer or owner who wants to check whether a price is realistic. The idea is simple: you look for very similar apartments in the same area and see at what prices they are being sold or offered for sale.

Recommended steps:

• Set clear criteria: same area, same number of rooms, similar surface (±10%), similar year of construction, comparable floor.
• Look for at least 5–10 active listings on the main portals, then remove obvious outliers (too cheap or too expensive, without clear explanations).
• Correlate with aggregated data from the Imobiliare.ro Index and, if possible, with quarterly market reports, so you can see whether those listings are below, above or in line with the neighborhood average.1,2,5
• Track listings over time: if an apartment stays listed for months at the same price without selling, this is an indication that the price is above what the market is willing to pay.

BNR reports and INS data on the residential property price index show that, on average, the market moves relatively slowly at national level, but adjustments can be quick at neighborhood or property-type level.3,6 That is why carefully analyzed local comparables are more relevant than any national average.

Quick checklist: is the price of this apartment “fair” for you?

In the end, “fair” means not only reasonable compared with the average, but also sustainable for your budget and justified by the home’s specific features. You can use the following checklist:

• The price per sqm is within ±5–10% of the neighborhood and apartment-type average indicated by the Imobiliare.ro Index or other credible reports.1,2,5
• You have adjusted up or down for year of construction, floor, condition of the building and of the apartment.
• The area has good infrastructure and development prospects, confirmed by the recent dynamics of local transactions and prices.3,4,6
• Comparable listings, analyzed over a few weeks, confirm that similar prices actually lead to transactions, not to listings that stagnate.
• The estimated monthly installment (if you take a loan) does not exceed a comfortable threshold in relation to your income, taking into account interest rate trends signaled by BNR.3,6

If the answer is positive for most of these points, it is likely that the price is fair, even if it is not “low”. If you have doubts on several criteria, treat the listing with caution, negotiate firmly or look for alternatives.

Sources

• Imobiliare.ro – Indicele Imobiliare.ro, metodologie și evoluție națională și pe orașe
• Imobiliare.ro – Indicele Imobiliare.ro pentru București
• Banca Națională a României – Rapoarte asupra stabilității financiare și analize privind piața imobiliară rezidențială
• Imobiliare.ro Market 360 – Rapoarte trimestriale Piața Imobiliară Rezidențială