FM newsroom- real estate outlook, Romania. Romania’s real estate market is entering 2025 with renewed optimism as investor confidence rebounds. A recent Cushman & Wakefield Echinox report reveals that most investors anticipate portfolio growth, signalling favourable conditions across key real estate sectors despite economic challenges.
Investor Sentiment Rebounds as Confidence in Growth Increases
According to the latest “Real Estate Investors Sentiment Barometer,” 64% of respondents foresee portfolio value increases over the next 12 months, compared to only 6% who predict declines. This marks a clear improvement from previous years, reflecting renewed trust in Romania’s economic environment and real estate prospects.
Key factors contributing to this optimism include increased access to financing, rising demand for modern spaces, and a growing focus on sustainability and ESG (Environmental, Social, and Governance) compliance.
“Investors are optimistic while also showing a certain degree of caution regarding the evolution of the Romanian real estate market. They are predicting a consolidation of the industrial & logistics and retail segments, a stabilization of office demand, and selective portfolio growth,” Vlad Saftoiu, Head of Research at Cushman & Wakefield Echinox, told Romania Insider.
Bucharest and Regional Markets at the Center of Investment Focus
Bucharest continues to dominate as a top investment destination, with nearly 80% of investors highlighting it as their preferred location for new projects. However, interest in regional cities is also on the rise. 65% of respondents expressed strong interest in secondary cities. Smaller, tertiary markets—such as cities with fewer than 200,000 residents—are also gaining traction, with 31% of investors actively considering these locations.
Office Market Shows Signs of Stabilization
After a period of uncertainty, Romania’s office market is stabilizing as companies adapt to hybrid work models. A majority of investors expect rents to increase or remain stable. Selective expansions in premium, sustainable office spaces are also underway, addressing the demand for energy-efficient properties.
Retail Recovery Drives Renewed Optimism
The retail sector is experiencing a resurgence, with robust consumer spending and increased foot traffic boosting investor confidence. Many respondents anticipate rental rate increases for shopping centres and commercial spaces. Only a small fraction of respondents predict declines, signalling sustained recovery momentum.
Logistics and Industrial Spaces Continue to Thrive
Romania’s strategic location as a regional logistics hub remains a key driver for this sector’s growth. Although growth projections have slightly tempered, the long-term outlook remains positive as e-commerce and supply chain upgrades fuel demand for modern warehousing and last-mile delivery facilities.
Challenges: Inflation and Financing Costs
Despite the positive sentiment, investors remain mindful of certain risks. Inflation continues to be a significant concern, potentially driving up operational costs and impacting tenant affordability.
Rising construction costs could affect project timelines and reduce profitability. Interest rates also pose challenges, though bank loans remain the dominant funding source, with 49% of respondents citing favourable credit accessibility.
Sustainability: A Cornerstone of Investment Strategies
ESG compliance and sustainability certifications are becoming essential components of investment decisions. This shift aligns with the EU ESG Taxonomy, which encourages sustainable development as a way to enhance long-term portfolio value and resilience.
Future Trends: Portfolio Expansion and Smart Property Management
A majority of investors plan to expand their portfolios over the next three years, with only 9% considering downsizing. This expansion is likely to focus on key growth sectors such as retail and logistics, while the office market sees more selective investments.
Digital transformation and smart property management are also gaining momentum. Investors are integrating data-driven solutions to enhance tenant experiences and optimize operational costs. Tenant behaviour and preferences, including demand for flexible spaces, are expected to further shape market trends.