Luxury real estate in the Pipera area, preferred by foreigners

The luxury real estate segment in the north of the capital – the Pipera area is consolidating as a pole of attraction for foreign investors and buyers, thanks to an ideal mix of benefits. Advantages include a competitive price compared to other European capitals and easy access to facilities such as top international schools in Bucharest.

An analysis carried out by City Garden Residence, the developer of the Bonton Luxury Villas project in Pipera, shows that 80% of first-phase buyers are foreigners, while only 20% are Romanians. Also, the share of end buyers versus investors is 70% – 30%.

Bucharest is among the European capitals with the most competitive housing prices, which is a major advantage for foreign investors looking to purchase such properties in a growing city. Also, the return on investment and the potential for property value appreciation over time are other important reasons for foreign investors to consider buying luxury real estate in the north of the capital.

In this context, the developer City Garden Residence has sold most of the first 36 villas of the Bonton Luxury Villas project to foreign buyers. They bought the homes at prices starting at €400,000 + VAT, which means a price per usable square meter of around €1.365, lower than in other European capitals. The villas of the complex have floor areas between 293 – 327 sqm and benefit from up to 7 spacious rooms, 2 or 3 terraces, private garden and premium finishes. Around a third of buyers have opted for the interior elevator, an exclusive feature that the developer provides.

Given an average rent in the area of between €3,000 and €4,000 and an additional budget for fit-out, investors can benefit from an annual return of around 8%, which is above the market average.

“The luxury real estate market in the capital has seen a significant development in recent years, driven by increasing demand, diversification of projects and returns. The market is attractive to foreign buyers, as house prices have not yet caught up with other European capitals and are much more affordable. They understood that it is the right time to invest, as there will be no downturn in the coming period, contrary to the expectations of Romanians. Building material prices have increased by more than 50% since the start of construction, which will lead to an increase in second phase house prices,” said Andrei Cantaragiu, CEO of City Garden Residence.

In addition to the low cost, Pipera’s various facilities contribute to its attractiveness, especially its proximity to international schools. This advantage is a priority for many expats moving with their families to the capital. The Bonton Luxury Villas project is located just 200 meters from the American School, with other prestigious schools nearby, such as the British School of Bucharest, Olga Gudynn International School or Maarif Schools of Bucharest. The project is also located in the vicinity of Băneasa Forest and is well connected to the city’s points of interest, such as the Pipera, Voluntari and Aurel Vlaicu office areas, shopping centres, the city centre and the airport.

The Bonton Luxury Villas residential complex consists of 66 luxury villas with modern amenities and integrated facilities – private club with swimming pool and gym. The project is currently in the second phase of development, comprising 30 villas, being in the finishing stage. The deadline for completion of the construction work is scheduled for this year, with the interior finishes to be completed in 2024. The total investment in the project is more than €19 million. The price of a villa in the second phase of the project starts at €449,000 + VAT.