Romania Entering a time of stability

TCushman & Wakefield Echinox surveyed the top management of local, regional and global investors and developers, with a combined Romanian real estate portfolio valued at more than EUR 15 bln, thus having a share of around 50 pct of the local modern real estate market.

Investors generally anticipate a period of market stabilisation, with limited forecast of sharp rental, demand and value growth, factors which suggest that Romania remains an attractive destination, with conditions that support growth and investment on all market segments, even if a number of challenges persist.
Vlad Săftoiu, head of research at Cushman & Wakefield Echinox

Most respondents foresee a positive office rental evolution in the next 12 months, with 56 pct effectively expecting growth, 39 pct forecasting stability, and only 5 pct predicting a decline. The consistently high percentage of respondents forecasting rental growth over recent years suggests sustained confidence in the long-term upward trajectory of this market segment.

After a period of strong optimism between 2022 and 2023, when most of the respondents anticipated rental growth in Romania’s industrial & logistics market (peaking at 75 pct in 2023), expectations have moderated in the subsequent years. In the latest edition of the barometer, 52 pct of respondents expect rents to remain stable, 36 pct foresee further growth, and 12 pct predict decreases. This shift suggests a growing perception related to market stabilisation and a potential rental growth slowdown.

The results indicate a cautiously optimistic outlook for retail rents. While 41 pct of respondents expect increases, nearly half (49 pct ) anticipate stability, and only 10 pct foresee decreases. The consistent share of stable expectations implies that the retail market enters a period of post-pandemic normalisation, supported by steady demand and a broader economic stability.

Fiscal changes are perceived as the main factor influencing occupancy costs across the real estate market, cited by 20 pct of respondents. Geopolitical developments and macroeconomic uncertainty follow closely (18 pct each), while inflation (17 pct ) and interest rates (13 pct ) are also considered significant factors impacting rental levels and overall demand.

In terms of demand for new spaces, the office outlook is still stable, with the market showing signs of consolidation as many tenants chose to adapt to new work models rather than pursuing expansion. The industrial & logistics segment also appears to be stabilising, reflecting a mature and balanced demand environment, while there appears to be a cautiously positive outlook when it comes to retail spaces, with steady confidence but limited expectations for major changes ahead.

Investors are still optimistic about the Romanian commercial real estate market, even though their focus is diversifying.

Industrial & logistics assets lead in potential, while alternative segments such as hotels and residential (including PRS or PBSA) are gaining momentum. Offices show a gradual recovery, and retail remains moderate. Most investors aim to expand or maintain their portfolios, thus signalling continuous confidence despite caution.

Bucharest and the secondary markets consolidated their positions as the preferred investment destinations. 72 pct (compared with 77 pct in 2024 and 66 pct in 2023) of respondents indicate Bucharest as their main location for new investments, while 34 pct (31 pct in 2024 and 24 pct in 2023) are actively targeting tertiary locations (cities with less than 200,000 inhabitants). Secondary cities are also a very attractive destination for 68 pct of respondents.

A large majority of investors (56 pct ) plan to expand their portfolios in 2026, while 35 pct intend to maintain their current position and 9 pct anticipate reducing their activity. Although the share of investors pursuing expansion decreased compared with previous years, the overall sentiment remains optimistic, reflecting continued confidence in market opportunities.

Banks are the main source of financing for 34 pct of respondents, while 21 pct each claim that the capital required for further investment comes from shareholder loans and own funds.

Investor perceptions remain relatively consistent in 2025, with bureaucracy (58 pct ) and the quality of transport infrastructure (42 pct) seen as the main challenges. The quality of IT infrastructure is still highly appreciated, with 80 pct of respondents rating it as “very good” or “excellent”. Declines are observed in perceptions towards taxation, the labour market and overall economic stability, suggesting a more cautious investor outlook compared with 2024.

Investors have a relatively mixed perception regarding the Romanian economy, as over half of respondents (52 pct ) expect GDP to register moderate growth in the short term, while 15 pct anticipate a more solid growth and 33 pct foresee a decline. The results thus indicate moderate optimism, reflecting expectations of slower economic momentum amid ongoing market adjustments.

Despite a more selective investment environment, the market sentiment remains steady as most investors expect their portfolio values to stabilise over the next twelve months, reflecting confidence in long-term market fundamentals.

The Romanian real estate investment market has been very consistent during the last decade, with a cumulative transaction volume exceeding EUR 8 bln since 2016.

The market continues to hold firm, supported by sustained occupier activity and a new supply pipeline of more than 800,000 sqm of office, industrial and retail spaces scheduled for delivery over the next two years.