In 2025, Romania’s real estate market was estimated at approximately €1.16 trillion, recording an annual growth rate of 2.21%, driven primarily by trends in residential prices, according to a new EY study. Residential properties accounted for approximately 75% of the total market value, while the commercial real estate segment (office buildings, retail spaces, warehouses, and industrial properties) accounted for the remaining 25%. Although residential growth remained the main driver of volume, commercial assets continued to support investment activity and transaction value.
At the end of 2025, Romania had approximately 8 million sqm of industrial space, 4.7 million sqm of modern retail space, and 3.4 million sqm of modern office space in Bucharest. A notable aspect is the lack of new office space deliveries in 2025 – a first for the capital – which consolidated rental stability and limited downward pressure on values.
Prime retail rents in Bucharest have stabilized at EUR 80–85/sqm/month, reflecting strong tenant demand for dominant shopping centers. Industrial rents have seen a slight decrease to EUR 3.8–4.8/sqm/month, driven by increased supply and a more cautious approach from occupiers. Across all segments, yields have generally remained stable, signaling continued investor confidence in Romanian income-generating assets.
Outlook for 2026
Prospects for 2026 remain favorable, but within an increasingly selective context.
Segment commercial It is projected to grow by approximately 1.21% per year over the next 3–5 years, a more moderate pace compared to the residential sector, but one that reflects the maturing of the market and greater investment discipline.
Assets in the sector industrial-logistic are expected to remain the focus of investors, supported by nearshoring trends, expansion of production capacities, and infrastructure investments funded by European funds.
The sector of retail enters a new development cycle, with approximately 700,000 sqm of modern retail spaces expected to be delivered in the next five years, mainly outside of Bucharest. These developments generate opportunities but also increase execution risks, particularly regarding location selection, tenant mix, and financing structure.
For investors and companies, success will depend on discipline in pricing, differentiation through asset quality, alignment with ESG criteria, and access to financing. Transaction durations are expected to remain extended, and their complexity to increase, particularly for platform acquisitions, mixed-use developments, and portfolio restructurings.
The real estate sector continues to represent an essential pillar of M&A activity in Romania, supported by robust fundamentals and sustained investor interest. 2025 data confirm that, despite a more cautious European investment climate, Romania remains an attractive market for both local and international investors. The sector's strategic relevance is expected to continue in 2026, even in a context characterized by increased selectivity and focus on execution.
„Data for 2025 confirms that Romania continues to attract both local and international capital, with the real estate, hospitality, and construction sectors leading merger and acquisition activity for the third consecutive year. Stable returns, limited availability of new office space, and sustained investor appetite for income-generating assets reinforce the sector's strategic relevance.”, says Bogdan Mitroi, Manager, Transactions and Corporate Finance, EY-Parthenon.".
”Although residential assets determine the total market size, the commercial real estate segment concentrates transaction value, with logistics, retail parks, and hospitality emerging as the most attractive subsectors. Investors prioritize dominant assets, inflation-indexed cash flows, and opportunities in secondary cities, where yield differentials remain attractive.
”Against the backdrop of cooling growth in the commercial real estate segment and the market entry of new retail projects, investors are facing a higher level of complexity in execution and structuring. Discipline in pricing, alignment with ESG criteria, asset quality, and access to financing will become decisive factors, especially in the case of platform acquisitions, mixed-use developments, and portfolio repositioning.” adds Mitroi.
The real estate sector at the center of M&A activity in Romania
The HORECA and construction sector (REH&C) once again ranked first in terms of the number of transactions in Romania, leading the M&A activity for the third consecutive year. In 2025, the sector recorded 56 transactions, though with a low level of transparency, given that approximately 70% of M&A transactions in Romania did not have their value publicly disclosed.
Consequently, the aggregate value of publicly reported transactions for the REH&C sector cannot be confirmed with a high degree of accuracy, and year-on-year value developments should be interpreted with caution.
Sources of capital remained diversified, with the United Kingdom ranking first among foreign investors, followed by Romania and the Czech Republic. Although local capital accounted for 27% of total investments, international investors continued to dominate large-scale transactions, intensifying competition for high-quality assets and portfolios. Major players, such as M Core (retail sector), CPI Property Group (logistics sector), and Granit (office sector), maintained their interest in the Romanian real estate market, alongside local investors such as Pavăl Holding (office sector).
From a subsector perspective, logistics, retail parks, and hospitality stood out as the most attractive segments. Investors showed a clear preference for scalable platforms, dominant regional assets, and properties with stable, inflation-linked cash flows. Activity in secondary cities gained traction, supported by favorable yield differentials and lower competitive intensity compared to Bucharest.