Interview – Vlad Musțeată, CEO North Bucharest Investments:

Interview – Vlad Musțeată, CEO North Bucharest Investments: “2026 is shaping up as one of the strongest investment windows for Bucharest’s residential market”

1. How does NBI evaluate current residential demand in Bucharest, and what shifts do you expect going into 2026?
Residential demand in Bucharest is supported by three strong buyer segments. First, long-term committed investors who consistently buy, upgrade and reinvest, a group with diversified portfolios and high resilience across cycles. Second, conservative buyers who stayed on the sidelines for 3–10 years due to high rates and uncertainty; many now realise they have underperformed compared to constant investors and are preparing to enter the market in 2026. Third, families with rising incomes who move naturally from older stock to larger or more efficient homes.

What changes going forward is the level of sophistication. Buyers today analyse yields, liquidity, technical standards and micro-locations with a discipline similar to institutional investors. This marks a clear step forward in the maturity of Bucharest’s residential market.

2. What key factors support your outlook for a potential price increase in the Bucharest residential market next year?
The outlook for 2026 is shaped by several structural dynamics. First, the supply of new units, especially well-located, efficient and modern apartments, continues to shrink, widening the gap between what buyers want and what the market can deliver. Second, liquidity is at its highest level in the last decade: savings have grown, and investors are more diversified and more confident in residential assets.

Third, despite six difficult years marked by high rates and uncertainty, prices still doubled, suggesting that even mildly positive sentiment could trigger another upward phase. Fourth, expected interest rate cuts from the National Bank of Romania in 2026 will improve mortgage accessibility and activate postponed demand.

Finally, most negative fiscal adjustments have already been priced in, reducing perceived risk. In North Bucharest, NBI’s core market, prices have risen 34% in two years, supported by strong yields and limited quality supply  factors that reinforce the potential for further appreciation in 2026.

3. Market data shows a declining trend in new supply. How is this shaping buyer and investor behaviour?
Deliveries in Bucharest have decreased by 20–23% year-on-year, and this contraction is reshaping behaviour in a decisive way. Buyers are moving faster, and investors are securing units earlier in the cycle, understanding that the best-positioned inventory disappears quickly.

In many northern developments, absorption now happens before completion, which reinforces urgency across the market. The shrinking supply pipeline also reduces optionality for buyers, projects that would have remained available for months a few years ago now sell out significantly faster. For investors, this increases the value of early positioning and careful project selection.

4. What impact could a potential decrease in interest rates in 2026 have on mortgage accessibility and overall demand?
Romania remains highly sensitive to financing costs. Even a modest decrease in interest rates can unlock a substantial volume of postponed demand.
Lower rates improve affordability, accelerate decision-making and create competitive pressure for limited inventory. In a supply-restricted market, the effect is immediate and visible in pricing.

5. To what extent does Bucharest follow the residential trends highlighted in PwC’s Emerging Trends in Real Estate for Central Europe?
Bucharest aligns closely with PwC’s findings: structural undersupply, high construction costs, rising rental pressure and increased institutional interest in residential assets.
The difference lies in pricing—Bucharest still starts from a lower baseline, leaving headroom for both yields and appreciation.

6. Golden Visa markets have redirected global capital flows, while Bucharest is seeing rising foreign interest. How do you compare these dynamics, especially in relation to the premium and luxury segment?
Golden Visa destinations absorbed large volumes of international capital, and as those programs evolve, many investors are reallocating into emerging European markets. Bucharest is now perceived as offering more value per euro than most EU capitals.
Foreign demand was already increasing before this shift, and the redirection of global capital only amplifies the trend.

As for the premium and luxury segment, 2025 was a record year for Bucharest: the highest level of deliveries and transactions in modern history. But this volume will not repeat soon land suitable for premium development is increasingly scarce.
Today, premium properties average €3,300/sqm, and top projects exceed €5,000/sqm. Low future supply ensures that this segment will remain highly resilient.

7. Over the next two years, what criteria does NBI use to identify residential projects with strong appreciation potential?

First, micro-location fundamentals: upcoming infrastructure, connectivity, access to schools and business hubs, rental demand depth. This is why North Bucharest consistently outperforms. Second, developer discipline: financial strength, execution capability and transparency, factors that reduce risk and increase investor confidence.

Third, technical and energy performance: efficient engineering, sustainability features and long-term maintenance clarity. Buyers now link these aspects directly to asset value. Fourth, exit liquidity: absorption speed and rental market strength. A project must demonstrate that it can be sold or leased quickly at every stage of its lifecycle.

NBI covers a wide typology of developments, which allows us to tailor portfolio strategies what we call smart portfolio rotation moving investors from mid-tier assets into higher-performing premium ones to maximize returns.

8. NBI has expanded significantly. How is this reflected in your operations and capacity?
Our growth has been driven first and foremost by people. At NBI, the team is our most important asset — the real competitive advantage that stands behind every project, every investor relationship and every strategic decision.

We have doubled our internal staff, and together with our collaborators, we will exceed 200 experts by year-end. This expansion reflects a deliberate investment in talent: analysts, project consultants, investment advisors and operational specialists who understand the market deeply and execute with discipline.

To support this growth, we scaled our infrastructure as well, operating today from three dedicated sales offices and a central headquarters. But the infrastructure is secondary its purpose is to empower the people who drive our results.

Real estate remains a people business. Markets shift, but the strength of the team defines the strength of the organisation. That is the foundation of NBI’s performance and long-term strategy.

9. What advice would you give investors who have stayed on the sidelines and are considering entering the market in 2026?
Enter early. In every market cycle, the best-performing units are secured before financing conditions improve and before sentiment turns positive.
With declining supply, rising capital availability and the prospect of interest rate cuts, 2026 stands out as one of the clearest buying windows of the past decade.
This market consistently rewards those who enter early, even with smaller or less “perfect” units, because every cycle creates opportunities for upgrading and long-term capital growth.

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