Real estate investment transactions in the Romanian commercial real estate sector totaled €419 million in H1 2024 and could reach around €700 million by the end of the year, surpassing 2023 levels, according to an analysis by Colliers.
Romania’s performance places it in the leading position of the top six largest markets in Central and Eastern Europe (CEE), alongside Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia.
Last year, the investment volume reached €500 million, primarily driven by the industrial and office sectors. Looking ahead, Robert Miklo, Director of CEE Investment Services at Colliers, predicts we could see more transactions in regional cities involving industrial and retail projects, while Bucharest may see new office segment deals.
Despite risk costs, Silviu Pop, Director of CEE & Romania Research at Colliers, remains optimistic about 2024. Potential interest rate reductions and signs of market stabilisation in Western Europe contribute to this positive outlook.
In the office sector, new demand was moderate in H1 2024, with 160,000 sqm leased in Bucharest—a 7% increase from 2023. One new building of approximately 16,000 sqm is expected to be delivered this year, with further growth anticipated from 2026 onward.
Retail experts at Colliers estimate that the threshold of 5 million sqm of modern commercial space will be surpassed by 2026-2027, up from the current stock of 4.6 million sqm.
In the industrial segment, the total leasable space reached 7.3 million sqm, with an additional 800,000 sqm under development, expected to be completed by the end of 2025.
At the same time, Pop highlights the continued relevance of nearshoring/friendshoring in the production sector. However, new leasing volumes decreased by 29% in H1 2024 compared to the same period last year, attributed to the absence of large lease contracts.
In the residential sector, demand pressure remains high, while new supply is limited due to reduced project authorization activity.
For land transactions, 2024 presents opportunities for strategic acquisitions, particularly in urban regeneration projects.
Meanwhile, Romania’s construction sector has seen near-historic records due to massive investments backed by European funds.
Pop stated that competition between the private and public sectors, rising salaries, and material price pressures have strained the Romanian construction market, leading to increased costs since H2 2023.
Despite the challenges, the country’s long-term real estate prospects remain promising, according to Colliers’ experts.
