Bucharest, the bustling capital of Romania, has recently earned the title of the most affordable capital city for renters in Eastern Europe. This distinction, highlighted in a 2024 analysis by Storia, a leading real estate platform, positions Bucharest as an ideal destination for renting in the European Union.
The same study also places Romania 13th out of 31 European countries regarding rental affordability.
Why Choose Bucharest?
One economic indicator that determines how affordable a certain city or country is for living is the rent affordability index, calculated as the ratio of the average rent price to the average salary. Thus, the lower the index value, the more affordable the rent.
In Romania, the average rent for a studio located outside the central areas of the urban environment is currently around 302 euros, according to data reported by the Numbeo platform. The platform uses both public statistical data and information submitted by users for calculations. At the same time, the average net monthly salary is around 1,040 euros, according to the latest information published by the National Institute of Statistics.
Bucharest offers a unique blend of affordability and vibrant city life that is hard to find elsewhere in Europe:
- Affordable Living Costs: The average rent for a one-bedroom apartment in Bucharest is around €375 per month, constituting approximately 34% of the average monthly net income of €1,100. This affordability starkly contrasts cities like London and Paris, where similar accommodations cost upwards of €2,000 and €1,500, respectively.
- Rising Salaries: Economic forecasts suggest that Bucharest’s average monthly net salary could reach about €1,600 by 2027. This projected increase will further enhance the city’s rental affordability, allowing residents to enjoy a comfortable lifestyle.
Not only that, but Bucharest also offers many attractions, incredible internet speed, which ranks 7th in the world, and competitive jobs for those looking for an expat-friendly city.
Besides, the overall cost of living in Bucharest is enticing for worldwide nomads to come, live and work in Romania’s Capital City.
The Rental Market Landscape in Bucharest
Bucharest’s rental market is diverse and caters to various needs:
- Variety of Accommodations: The city boasts a range of rental options, from cosy studios to spacious apartments. For instance, a studio in neighbourhoods like Titan can be rented for about €350, while a two-bedroom apartment in the trendy Unirii district may cost around €800.
- Thriving Short-Term Rentals: The short-term rental market is flourishing, generating approximately €24 million in the first half of 2024. With an average daily rate of €63.70 and a solid occupancy rate of 55%, this sector presents exciting opportunities for property owners and visitors.
- Affordable coworking spaces: Bucharest coworking spaces are among the most affordable in the region, with lots of amenities and creative incentives.
Bucharest: A City on the Rise
Bucharest is not just affordable; it is also a city full of potential:
- Investment Opportunities: The city’s rental yields are attractive, averaging around 6.23%. This makes Bucharest a great place to live and a promising market for real estate investment. Areas like Berceni and Militari offer exceptionally high yields, making them hotspots for investors.
- Future Developments: As economic conditions improve and financing becomes more accessible, demand for residential properties is expected to rise. Developers are responding to this trend, with new projects underway to enhance the housing landscape further.
For those considering a move to the European Union, Bucharest offers an unbeatable combination of affordability, economic growth, and a vibrant lifestyle. With competitive rental prices, promising salary increases, and a dynamic rental market, the Romanian capital is poised to attract more renters and investors. Whether you’re looking for a long-term home or a short-term getaway, Bucharest invites you to experience its rich culture, stunning architecture, and lively atmosphere while enjoying a cost-effective living experience.
