Colliers: Land continues to be a strategic investment despite the uncertainty in the economic and political climate

Romania’s land market remained stable in 2024, with transaction volumes close to the 450 million euro recorded in 2023, despite an economic and political climate marked by uncertainty, according to Colliers’ annual report. Bucharest and its metropolitan area continued to be the main hub for transactions, accounting for 80 percent of the total, while residential projects made up 70 percent of these deals.

Land plots with approved urban planning documentation preserved their value, Colliers consultants highlight, whereas properties requiring such approvals saw declines, in some cases by as much as 30-40 percent. Local investors strengthened their dominant position, and demand for land in strategic locations continued to rise. Looking ahead to 2025, market trends will largely depend on post-election governmental stability, while the completion of postponed transactions could provide a boost to investment activity.

“The land market attracted investors from a diverse range of sectors in 2024, such as residential, retail, hospitality, healthcare, energy, or agri-business. Compared to previous years, the capital’s share of total transactions has increased. Investor interest has focused on strategic land platforms in key areas such as Militari-Preciziei, Cotroceni-Progresului, and Băneasa-Sisești, which have emerged as prime development hotspots. Additionally, Bucharest’s northern metropolitan areas – Pipera, Corbeanca, Buftea, and Snagov – have seen significant activity, particularly for land with building permits, allowing for the fast implementation of projects”,  highlights Sînziana Oprea, Director Land Agency at Colliers România.

Land transactions for retail projects accounted for about 20 percent of total market volume, including the closure of long-term deals, Colliers consultants note. They explain that retailers have pursued a strategy of consolidation and expansion, focusing on previously underserved areas. The office market remained dynamic, supported by a few transactions such as One United’s acquisition of Romaero, along with several strategic land purchases for potential future developments. The residential segment experienced significant growth, now representing approximately 70 percent of total land acquisitions. Investor interest was particularly strong in key cities such as Timișoara, Brașov, and Constanța, as well as the broader coastal region.

Local investors continue to dominate the land market, particularly in the residential sector, where most developers are backed by local capital. Another key trend is the increase in consolidation transactions, as developers acquire adjacent land parcels to facilitate future expansion.

The land supply continued to expand in 2024, driven by sellers looking to optimize their real estate portfolios. Even some active investors divested from less strategic land and shifted their focus to specific market segments. Bucharest’s metropolitan area has become increasingly attractive, particularly near A0 highway junctions. Interest here is no longer limited to industrial developments but has expanded to residential and mixed-use projects, reflecting the market’s ability to quickly adapt to new opportunities.

“The most notable transaction of the year was the acquisition of the Roca Preciziei / HILS platform, spanning 12 hectares and valued at approximately 24 million euro. Other key acquisitions include the former Muntenia factory, purchased by Israeli developer Dimri, along with several transactions from the CPI portfolio. Sellers have become more flexible with payment terms, introducing options such as long-term installment plans or occasional payments, tailored to market conditions. This strategy reflects a deeper understanding of market dynamics and the financial constraints faced by investors in an increasingly uncertain environment compared to previous years. Land prices have evolved differently depending on the property type. Land with approved urban planning documentation and building permits has retained or even increased in value. In contrast, certain plots without permits or in less attractive areas have seen price declines of up to 30-40 percent compared to previous years”, explains Sînziana Oprea, Director Land Agency at Colliers România.

Looking ahead, Romania continues to attract investors due to its economic potential, reflecting strong confidence in the market. In 2025, the land market will largely depend on the presidential elections and the stability of the government thereafter, concludes the Colliers director. Several transactions previously postponed due to political and administrative reasons could be finalized in the first half of the year, providing a new boost to the market. Landowners with strong financial positions are choosing to wait for the optimal selling moment, while investors – especially local ones – remain confident in the market’s medium- and long-term outlook. Although some investments may be temporarily put on hold until the political landscape stabilizes, interest in strategic assets and market opportunities remains high. If no major unexpected changes occur, the land market is expected to maintain a steady pace throughout 2025.