Romania Real Estate Trends & Outlook 2025
A market in recalibration, driven by quality and selectivity. Romania’s real estate market ends 2025 in a phase of adjustment rather than contraction. Slower economic growth, elevated inflation and high financing costs have tempered activity across most sectors, yet underlying fundamentals remain sound. As the market moves toward 2026, performance will increasingly depend on asset quality, flexibility and alignment with evolving occupier and investor needs.
Macroeconomic context
Economic growth slowed sharply, with GDP forecast at around 0.6% in 2025. Inflation re-accelerated close to 10% following VAT increases and the removal of energy price caps, while real incomes came under pressure due to moderating wage growth and currency depreciation. Despite near-term constraints, forecasts for 2026–2027 point to a gradual recovery supported by infrastructure investment, renewed private demand and easing inflation, creating cautious optimism for real estate activity.
Office market: maturity and consolidation
The Bucharest office market has entered a consolidation phase. Total modern stock stands at approximately 3.4 million sqm, with no new deliveries in 2025 and limited supply expected in 2026. Leasing activity softened, with gross take-up estimated at around 220,000 sqm for the year and net take-up down by roughly 30% compared to 2024. Vacancy continued to edge down, reaching approximately 11.2% in Q3 2025, supported by the lack of new supply.
Occupiers remain focused on cost efficiency and hybrid work models, driving a clear flight to quality. Demand favors centrally located, energy-efficient and flexible buildings, while limited availability in prime areas is redirecting interest toward nearby submarkets and supporting prime rental levels.
Industrial & logistics: the strongest segment
Industrial real estate remains the market’s key growth driver. Modern stock exceeded 8 million sqm in Q3 2025, with approximately 310,000 sqm delivered during the year. This controlled pipeline has kept vacancy low, at around 4–5%.
Demand remains robust, with gross take-up expected to surpass 1 million sqm in 2025, driven by e-commerce, third-party logistics and nearshoring manufacturing. Net take-up is projected to reach up to 600,000 sqm. Prime rents softened slightly, dipping below €5.00/sqm/month, as competition increased. Infrastructure development continues to unlock new logistics corridors and regional hubs.
Residential market: prices resilient, affordability strained
Residential deliveries in Bucharest and Ilfov declined year-on-year in 2025 as higher VAT, rising construction costs and slower pre-sales weighed on development activity. Transaction volumes are easing, yet prices continue to rise. Average prices for new homes in Bucharest reached €2,362 per usable sqm in September 2025, supported by limited supply and high replacement costs.
Investment market: selective activity, stable yields
Investment volumes are expected to total approximately €570–580 million in 2025, well below recent peaks. Prime yields remained stable at around 7.75% for office and retail and close to 8% for industrial. Investor interest is increasingly selective, focused on income security, asset quality and long-term resilience, with alternative sectors gaining visibility ahead of a potential recovery in 2026.
Head of Research Romania
