New construction in Bucharest. Image: Geoln.com
These are the results of a comparison of the markets in Budapest, Warsaw, and Bucharest prepared by the developer Cordia, according to CIJ World.
At the end of the first quarter, the average price of new housing in Budapest exceeded 1.9 million forints (€5,200 per square meter). Independent data from the National Bank of Hungary shows a similar figure—€5,100 per square meter.
In Warsaw, the average asking price for new construction was 19,358 zlotys (€4,500 per square meter). However, apartments that were actually sold cost an average of 17,449 zlotys (€4,000 per square meter). In new developments, the price exceeded €4,600.
In Bucharest, the entry price is significantly lower. The average price of new housing in March was about €2,540 per square meter, and in July, according to Imobiliare.ro, it rose to €2,620—12.5% higher than a year earlier. Thus, in terms of purchase price, Bucharest still retains a significant advantage. But the long-term calculations for an investor are no longer so clear-cut.
In Poland, new apartments are often sold without full interior finishing. Buyers must pay extra for renovations and fixtures before the property can be used or rented out.
Taxes also play an important role in pricing. In Hungary, a 5% VAT rate applies to new residential properties that meet the relevant requirements. In Poland, the rate is 8% for residential properties up to 150 square meters in size, while areas exceeding this threshold are taxed at a rate of 23%. In Romania, the standard VAT rate is 21%.
Land costs also vary. According to Cordia’s estimates, the land component per square meter in Warsaw is more than twice as high as in Budapest and Bucharest. At the same time, construction in Warsaw and Bucharest costs approximately 25–33% less than in Budapest.
For the rental market, the picture changes again. Cordia estimates the gross yield on Polish properties at approximately 4.5–6%, and on Bucharest properties at 5–6%. These figures represent the developer’s estimates, not uniform market statistics.
Warsaw compensates for high housing costs with a large labor market and steady demand for rentals. Bucharest offers a lower entry barrier, but prices there are rising faster. Budapest remains the most expensive of the three markets; however, a lower VAT rate for eligible new properties improves the economics of the purchase.
As a result, investors must consider not just the cost per square meter, but the entire transaction: the apartment’s price, taxes, finishing costs, maintenance expenses, potential rental income, and the resale value. That is precisely why an apartment priced at €2,600 per square meter in Bucharest may not necessarily be a more profitable investment than a property priced at €4,000–5,000 in Warsaw or Budapest.
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