Romanian Real Estate Market Shows Signs of Growth Amid Economic Uncertainty

Economic growth in Romania has slowed, with GDP projected to expand by only 0.9% in 2024 before recovering to 1.9% in 2025. High inflation, a rising budget deficit (expected to reach 8.7% of GDP in 2024), and political instability—marked by upcoming presidential elections—have impacted investor sentiment. However, government plans to increase public investment with EU funds offer a potential stimulus for the real estate sector.

The total real estate investment volume in Romania exceeded €730 million in 2024, a 50% increase from the previous year (Romanian Real Estate Market Overview 2024). The industrial sector led the way, accounting for 40% of transactions, followed by retail (30%) and office assets (22%). The largest transaction of the year was CTP’s €168.2 million acquisition of an industrial portfolio from Globalworth.

Bucharest’s office market expanded with just one new project in 2024, adding 16,000 sqm of Class A space (UniCredit Bank Romania, 2024). Vacancy rates remain relatively high at 12.2%, though the Center and CBD submarkets show lower vacancies of around 5-6%. Demand has been driven by the IT, finance, and professional services sectors. Prime office rents remain stable at €21-22/sqm/month, but developers are cautious about speculative projects due to economic uncertainty.

Romania’s modern industrial stock surpassed 8.2 million sqm, with an additional 600,000 sqm planned for 2025. The sector remains attractive due to low labor costs and improving infrastructure, such as the expansion of the A7 highway. Prime rents in the industrial market have increased to €4.5-4.75/sqm/month, and vacancy rates are at historic lows of 4.3% nationwide.

Retail investments were strong, accounting for 30% of total real estate investments. Retail parks and big-box stores remain popular among investors, with recent transactions including the €25 million sale of Era Shopping City in Oradea. Developers are focusing on locations with strong consumer demand and urban expansion potential.

Despite economic headwinds, the Romanian real estate sector is expected to see modest growth in 2025. Investment volumes could exceed €800-900 million, driven by postponed transactions and new office projects in Bucharest. The Schengen accession in early 2025 is expected to enhance Romania’s attractiveness for foreign investors, particularly in logistics and industrial real estate.

While political uncertainty and fiscal challenges remain, Romania’s real estate market continues to offer opportunities, particularly in the industrial, retail, and logistics sectors, as infrastructure improvements and EU funding bolster development