Romania’s real estate investment market recorded transactions of 750 million euro, up 58 percent in 2024

Real estate investments in Romania reached 750 million euro in 2024, marking a 58 percent increase compared to the previous year, though slightly below the 800 million euro annual average recorded over the past decade, according to Colliers’ annual report.

Romania emerged as a regional leader, delivering the strongest performance among the five major economies of Central and Eastern Europe – Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia. Industrial assets dominated transaction activity, totaling nearly 300 million euro, making 2024 a record year for this investment category. Among the most significant deals was the 278 million euro sale of Globalworth’s industrial portfolio, partially co-owned with Global Vision, completed through two separate transactions.

Looking ahead to 2025, Colliers experts describe market prospects as mixed, citing political uncertainty following the cancellation of the presidential elections and an elevated risk profile due to economic imbalances as key challenges for the investment landscape.

“Compared to the previous year, 2024 was significantly more active and concluded with a solid performance. The strong transaction momentum observed throughout the year has carried into 2025, with several major deals still in progress. These increases in transaction activity confirm that Romania’s relatively low investment volume, compared to Poland, is primarily due to limited available products rather than a lack of investor interest. Banks have remained actively involved, ensuring continued access to financing. Looking ahead, we anticipate sustained positive dynamics, with strong prospects to surpass 2024’s performance”, explains Robert Miklo, Partner | Head of Capital Markets at Colliers.

The largest transactions of the year were the sales of Globalworth’s industrial portfolio. CTP acquired 270,000 square meters of leasable warehouse space and land for future expansions across multiple cities for approximately 168 million euro. Additionally, WDP purchased a 136,000-square-meter portfolio, jointly owned by Globalworth and GlobalVision, for around 110 million euro. Furthermore, WDP acquired Expo Market Doraly, a retail park located north of Bucharest, for an estimated 90 million euro. Another notable transaction was the sale of The Landmark, a prime office complex in the central business district, to African Industries Group, backed by Indian capital. This marks the first major commercial real estate transaction in Romania involving Indian investment and has contributed to the stabilization of prime office yields, according to Colliers consultants.

Among other notable acquisitions last year were two retail parks purchased by BT Property, the real estate fund of Romania’s largest bank, further strengthening a new type of capital in the market. Additionally, Mureș Mall in Târgu Mureș was acquired by the local medical university, with plans to transform it into an educational facility. This transaction is part of a growing trend of recent acquisitions by local authorities, involving significant investments.

“The average transaction value in recent years stood at approximately 25 million euro, marking one of the lowest levels recorded. However, this trend reflects the growing involvement of local capital, which is becoming increasingly active. A new generation of entrepreneurs, who have accumulated capital through their businesses over the past decades, is actively seeking investment opportunities. Between 2022 and 2024, transactions below 20 million euro accounted for, on average, about a quarter of the total annual volume”, notes Robert Miklo.

Yields remained stable in 2024, standing at 7.25 percent for prime retail centers, 7.50 percent for premium office spaces, and 7.75 percent for top-tier industrial assets, with a slight 0.25 percentage point increase for the latter. Colliers specialists explain that this adjustment does not necessarily indicate a market correction but rather a realignment based on recent transactions that have validated current yield levels. Additionally, recent transactions involving well-performing, newly opened retail parks in regional cities have closed at yields around 8 percent, and in some cases, even lower. Regarding financing, banks remain open to lending and comfortable with current pricing, supporting well-performing assets, particularly in the industrial and retail sectors. Meanwhile, next-generation office spaces are gradually regaining investor interest after a period of decline driven by the remote work trend.

For 2025, the outlook is promising, with nearly 100 million euro in signed but yet-to-close transactions, including the sale of a portion of Iride Park, owned by Immofinanz, and a portfolio of retail parks belonging to MAS REI. Additionally, other deals in various stages of negotiation, totaling approximately 500 million euro, indicate a strong start to the year. If favorable trends continue, Colliers’ analysis suggests that commercial real estate investments could exceed 800 million euro in 2025. However, this scenario depends on key market developments.

“The main challenges for Romania are linked to its domestic context, marked by political uncertainty. This climate could lead investors to adopt a more cautious approach until the situation becomes clearer. Additionally, the high cost of risk, driven by a significant fiscal deficit and current account imbalances, weighs on the market’s attractiveness- even though investment yields remain competitive. Implementing fiscal reforms could help mitigate these risks and stimulate long-term investment activity. On the external front, geopolitical developments, the fragile eurozone economy, and global trade policies remain key factors to monitor. However, the long-term outlook remains positive. Between 2015 and 2019, Romania recorded an average annual commercial real estate transaction volume of over 900 million euro, while its nominal GDP doubled compared to 2015. Accelerated infrastructure development is set to drive broader economic growth and further enhance the country’s investment appeal. With strong fundamentals in place, Romania has significant potential to attract new investors and sustain a positive long-term trajectory”, concludes Robert Miklo, Partner | Head of Capital Markets at Colliers.