Romania's real estate investment market: a resilient performance

 

The Romanian real estate investment market closed the first half of 2025 with a significant transactional volume of €391 million.

 

This impressive figure, while a slight decrease of 6% compared to the same period last year, positions H1 2025 as the second-most performant first half in the last 12 years.

 

This performance surpasses the average for first semesters between 2013-2024 by 30%, underscoring the market's enduring resilience amidst current economic challenges, as reported by Cushman & Wakefield Echinox.

 

Key market drivers: foreign capital and sector dominance

 

A clear indicator of the market's maturity is the strong dominance of foreign investors, who accounted for over 70% of the total transactional volume. British capital, led by M Core, spearheaded investments with €148 million (38% of the total), followed by Romanian investors with €105 million (27%) and Hungarian investors with €52 million (13%). This diversification of capital sources highlights the increasing attractiveness of the Romanian market within the regional context.

 

The retail sector led the investment activity, representing 42% of the total volume. Prime yields across all segments remained stable, reflecting a confident investor sentiment in the market's underlying value and future prospects. While national GDP growth showed a modest 1% increase in Q2, the overall outlook for the remainder of 2025 remains positive, with an estimated total volume exceeding €800 million for the year.

 

Implications for businesses seeking commercial space

 

For businesses seeking office or warehouse space in Romania, these investment trends are highly encouraging. The significant inflow of foreign capital demonstrates international confidence in Romania's economic stability and growth potential. A resilient investment market often translates into a healthier development pipeline across all commercial sectors, including industrial and office spaces, ensuring a broader and potentially more modern supply of available properties.

 

The stability of prime yields suggests a predictable and secure environment for long-term lease commitments. Even with retail leading investment, the overall market strength indicates a robust economy capable of supporting diverse business operations. This strong market activity signals that Romania continues to be an attractive destination for companies looking to expand or establish new operations, offering promising opportunities for both leasing and potential future growth.

 

Source: zf.ro