Significant Changes on the Real Estate Market in Romania in 2024: Higher VAT and New Housing Delivery Standards

The year 2024 brought significant changes to the real estate market in Romania. VAT changes, new delivery standards, but also the obligation of insurance for all homes sold. These transformations already impact house prices, but also the buying process.

Also, real estate buyers and developers have to adapt to an environment that in recent years is in continuous change. For buyers, it is more important than ever to get information from reliable sources, but especially to benefit from professional advice from real estate agents.

VAT increase for New Properties

One of the most notable changes is the increase in VAT from 5% to 9% for the purchase of new buildings. This change applies exclusively to buildings with a maximum usable area of ​​120 sqm, not including outbuildings. The limit of the total value of the property, including the land, must not exceed the amount of 600,000 lei. This increase in VAT will directly affect the final cost of new buildings, putting pressure on buyers and developers.

New buildings will only be handed over finished at the Key

Another major change in the real estate market is the imposition of the standard according to which all new buildings must be delivered turnkey, habitable as such. This means that developers will be obliged to offer ready-to-live-in units, without leaving it up to the buyer to complete the finishing works. This measure comes with financial and operational implications for developers, but ensures buyers the comfort of immediately occupying the new homes.

Insurance has become mandatory for all home sales

Starting with the year 2024, every home sold must be accompanied by a valid home insurance policy. This requirement aims to protect the buyer's investment and ensure the security of the homes. Developers and buyers must comply with this obligation and comply with the new standards imposed by the legislation in force. Without this requirement, signing the real estate transaction at the notary's office is not possible.

Instead of conclusion

These major changes in the real estate landscape will have a significant impact on prices and the buying process. The increase in VAT and the new delivery standards may cause a price adjustment, and buyers will have to be more attentive than ever to the contractual details. Real estate agents now play a crucial role in guiding buyers through these changes, providing them with essential information and advice to make informed decisions.

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