Robust investment in real estate continues in Romania during the initial half of 2025, according to a recent report
Romania's Real Estate Market Thrives in H1 2025
Romania's real estate market experienced a robust performance in the first half of 2025, with a total investment volume of approximately €391 million. The office sector led the market, accounting for €169 million (44%), followed closely by the retail sector at €163 million (42%).
The office segment saw a significant rebound from H1 2024, accounting for 40% of the total investment volume in H1 2025. This rebound is attributed to renewed investor confidence and narrowing buyer-seller price gaps. Notable transactions include Granit Asset Management's first Romanian acquisition, the Equilibrium 1 office building, and Alfa Group's acquisition of part of the Iride platform.
The retail sector, led by transactions such as the sale of a portfolio of seven strip malls and the Focșani Mall, accounted for 42% of the total investment volume. MAS REI was among the active investors, selling seven retail parks to M Core.
International investors dominated the market, contributing €253 million, primarily from Central and Eastern Europe and the Middle East. Notable Romanian investors included Alfa Group and Pavăl Holding. However, the market remains heavily reliant on international capital.
The investment volume for the first half of 2025 represents a 6.5% decrease compared to the same period last year. Despite this decrease, the first semester of 2025 ranks as the second-best performing first semester in the past 12 years.
The outlook for the second half of 2025 remains positive, with ongoing transactions and a historical trend of stronger H2 activity. The expected total investment volume for the full year is between €800 million and €1 billion.
Mixed-use projects accounted for 14% of the total investment volume, with the IRIDE transaction involving 17 mixed-use buildings located near the Pipera subway station. The United Kingdom, Romania, and Hungary were the three most active countries in terms of investment volume.
Cristi Moga, Head of Capital Markets at Cushman & Wakefield Echinox, commented that foreign investors contributed over 70% of the transaction volume. The firm was involved in three of the year's largest transactions, with a combined value of €160 million.
| Sector | Investment Volume (€ million) | Percentage Share | |---------------|------------------------------|------------------| | Office | ~169 | 44% | | Retail | ~163 | 42% | | Industrial + Hotels | Remaining volume (~54) | ~14% |
| Investor | Activity/Notable Deal | |--------------------------------|---------------------------------------------------------------------| | Granit Asset Management | First Romanian acquisition: Equilibrium 1 office building | | MAS REI | Sold 7 retail parks to M Core | | M Core | Buyer of retail parks | | Alfa Group | Acquired part of the Iride platform | | Pavăl Holding | Acquired Ethos House building | | Solida Capital | New investor entry | | iO Partners | Advised on major transactions, facilitated new investor entries |
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
- Investors seeking opportunities in the thriving real estate market of Romania might consider venturing into finance for real-estate investing, as evidenced by the involvement of foreign firms like Granit Asset Management and M Core in the acquisition of office buildings and retail parks.
- Moving forward, considering the positive outlook for the second half of 2025, it would be interesting to observe if the investment volume in real-estate, which currently stands between €800 million and €1 billion, will expand further to include sectors like finance for real-estate investments.
