Romanian property is becoming more and more attractive for investments
Central and Eastern Europe have long been undervalued by investors. Today, however, the market is becoming increasingly attractive to international companies. In particular, demand for Romanian real estate is growing. Major developers are very positive about the country’s prospects and are ready to expand their asset portfolios.
Cushman & Wakefield Echinox conducted a survey among representatives of investment companies and property developers operating in the Romanian market. The results were as follows:
– 64% of respondents expect the value of their portfolios to go up throughout 2026;
– 6% of respondents forecast a decrease;
– Bucharest remains the key market;
– about 80% of businessmen plan to locate their projects in the capital.
It is worth noting that the attractiveness of Bucharest has risen significantly in recent years. In 2023, 66% of investors will include the capital’s assets in their portfolios. In 2022, this figure was 63%.
Market trends in Romania
In contrast to previous years, interest in smaller cities has grown. This trend is indicative of higher demand for emerging markets. 60% of respondents note the high potential of secondary cities. 30% of respondents intend to enter the third tier of locations.
Vlad Saftoiu of Cushman & Wakefield Echinox noted an optimistic mood among investors and developers. However, they are not in a hurry to act and are cautious about implementing new projects.
Looking at the general trends in the Romanian market, analysts note that the market remains balanced. This is due to some factors:
1. There is growing economic stability in the country, which partially compensates for the risks of macroeconomic problems.
2. Consumption is increasing, the population is ready to spend money.
3. The availability of bank financing is improving.
There are positive changes in the property sector itself. More and more projects are being implemented, taking into account the principles of sustainable development and ESG rules. As for risks, inflation remains the key risk. Its growth puts pressure on rental rates. In addition, construction costs are rising.
Romanian property forecasts
Demand for office space remains low. According to analysts, this trend will continue until 2025. At the same time, the supply of prime real estate is expected to decline. The reason for the decrease in vacancies is the lack of new buildings.
In Romania, conditions are favourable for higher demand for industrial and logistics properties. Rental demand will be at the level of 2017–2019. About 200 thousand square metres of new retail space should appear in the country in the coming months.
Housing costs will continue to rise due to lower interest rates. Moreover, Romania’s unemployment rate is declining, which favours the demand for home purchases.
In general, the local housing market shows a high degree of adaptability. This characteristic provides an opportunity to react flexibly and with minimal losses to global and domestic problems. A positive moment is Romania’s accession to the Schengen area. This opens up new opportunities for investment in infrastructure.