How the middle class began to disappear from the housing market between very expensive and cheap housing. “Try to negotiate aggressively”

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The residential market in Bucharest is going through a noticeable change in behavior. Future owners are more careful about the purchases they make and try to negotiate more. Real estate agencies say that if until now the negotiations were at 5-10% of the advertised prices, now they have reached up to 20%.

According to the observations of a boutique real estate agency specialized in the premium and luxury residential segment in Bucharest and the northern areas of the Capital, buyers’ interest is increasingly focused in two opposite directions, either they are looking for very affordable properties or, at the opposite pole, premium and luxury homes. The middle segment, once considered the engine of the market, is starting to lose ground.

The agency’s consultants say that in recent months they have noticed a significant increase in demand for properties with lower prices, but also an important change in the negotiating behavior of buyers. If a year ago most negotiations were around a 5-10% discount compared to the listed price, nowadays there are more and more situations where customers propose discounts of even 15-20%.

“We see a much more cautious market than in past years. Customers who fall into the middle market area are the most attentive to costs, interest rates, the exchange rate and the pressure of monthly installments. In many cases, they either look for an option that is considerably cheaper than they originally wanted, or they postpone the purchase decision and try to negotiate aggressively,” Claudia Negru, owner of the real estate agency, told Ziare.com.

According to the agency, the phenomenon is fueled by several factors that have directly affected the middle class: the increase in the cost of credit in recent years, the pressure of inflation on monthly expenses, the volatility of the euro-leu exchange rate and the general feeling of economic uncertainty. In this context, some buyers choose smaller properties in secondary areas or in early stages of development in order to stay within a sustainable budget.

However, the premium and luxury segment began to gain ground. Customers in this category are less dependent on bank financing. They are looking for well-positioned properties with large acreages, communities and high building standards.

“Paradoxically, while the middle segment is becoming more sensitive to price, the premium area remains active. There are buyers who are looking for exclusive properties and are willing to pay for location, privacy, energy efficiency or the concept of community. Practically, we observe how the market begins to divide more and more clearly between the extremes”, added Claudia Negru.

The agency’s internal data shows that properties in an “intermediate” price zone are also where negotiations have become the most difficult. Many buyers believe that the asking value no longer reflects the current economic context and try to obtain significant discounts before making a decision.

Experts believe that this polarization could redefine the residential market in the coming years, forcing developers and owners to adapt their pricing, positioning and product strategies.