Although the Property Market Has Been Hit by the ANCPI Cyberattack, Central Bucharest Apartments Continue to Sell at Premium Prices
Romania’s real estate market has suffered a significant setback following the cyberattack on the National Agency for Cadastre and Real Estate Publicity (ANCPI). Despite the disruption in property transactions, apartments in central Bucharest remain highly sought after and continue to command exceptionally high prices.
Studio Apartments Range from €17,000 to €95,000
The cheapest studio apartment currently available in Bucharest’s city center costs around €95,000 for approximately 25 square meters of living space. By comparison, similar properties on the outskirts of the capital can still be purchased for as little as €17,000.
Prices for apartments in central Bucharest remain elevated due to sustained demand. Two-bedroom apartments typically start at around €200,000, while premium properties can reach €450,000 or more.
“Sales have remained strong even after the cyberattack affecting the Cadastre Agency. Some owners are leaving the country and are offering fully furnished, well-equipped, high-end apartments at attractive prices. However, many sellers are people who purchased properties with mortgages two, three or even five years ago based on income levels they no longer have. Some owned several apartments, took out additional loans to buy more, and are now being forced to sell because rental income has declined while their overall earnings have fallen,” says real estate agent Florin Popescu.
Property Owners Remain Firm on Asking Prices
Many sellers who are not under immediate financial pressure continue to ask what buyers consider excessive prices, hoping that someone eager to purchase will eventually accept their terms.
Unfortunately for overly ambitious sellers, Romanian buyers have become increasingly cautious and do not have unlimited purchasing power, making negotiations more difficult and preventing many transactions from being completed.
“Many owners simply refuse to lower their asking price. They genuinely believe that’s what their apartment is worth. They also rely on market gossip. Someone may sell an apartment for €55,000 but tell the neighbors it sold for €60,000. Or they hear that a neighboring apartment sold for €60,000, even though it lacked modern windows or renovations, and they immediately list theirs for €65,000,” Popescu explains.
Buyers Depending on Mortgages Face Additional Challenges
The current situation is particularly difficult for lower-income buyers and for those relying on bank financing to cover the down payment.
Many people who expected to purchase homes benefiting from Romania’s reduced 9% VAT rate now fear they may lose that opportunity because transactions have been delayed. As a result, some prospective buyers are seeking additional bank loans simply to pay developers the required advance before legal deadlines expire.
ANCPI Says Citizens’ Data Remains Safe
Laurentiu Blaga, Director of the National Agency for Cadastre and Real Estate Publicity (ANCPI), stated on Wednesday that citizens’ personal data stored in the e-Terra database remains secure despite the cyberattack.
According to Blaga, only certain applications connected to the database were compromised, while the core database itself was not breached. He also announced that on 22 July, the affected applications will be migrated to the Romanian Government Cloud, after which state institutions will conduct a comprehensive security assessment.
Minister Darău Does Not Confirm an Extension of the Reduced VAT Deadline
Asked whether the Government was considering extending eligibility for the reduced 9% VAT rate given that property transactions have effectively been suspended for more than a week, Minister Irineu Darău declined to make any commitments.
He said the immediate priority is restoring ANCPI’s systems and evaluating the legal consequences only after all services become fully operational.
Darău added that Parliament is expected to hold an extraordinary session to address urgent matters related to Romania’s National Recovery and Resilience Plan (PNRR), but emphasized that no decision has yet been made regarding possible tax relief for affected homebuyers.
Banks Stand to Benefit from the Cyberattack’s Consequences
According to market participants, Romania’s banking sector may ultimately emerge as one of the indirect beneficiaries of the disruption.
Because property transactions have been delayed, many buyers who were otherwise eligible to purchase homes under the reduced 9% VAT regime have been forced to obtain additional loans simply to secure the down payments required by developers before contractual deadlines expire.
“Banks are even tougher than loan sharks, but because of the ANCPI crisis I had no choice but to take out a bank loan in order to pay my down payment. It’s already a difficult period with salaries falling, and I only hope the interest rate on this mortgage won’t increase over the coming years,” said N.D., one of the Bucharest residents affected by the disruption.
