Commercial Real Estate Investment in Romania

Published on April 26, 2026 and written by Cyril Jarnias

Romania, with its growing economy and strategic position in Eastern Europe, offers immense potential for commercial real estate investments. In recent years, the country has not only attracted major international investment funds but has also seen the emergence of lucrative opportunities in various sectors such as offices, logistics, and retail.

Vibrant cities like Bucharest and Cluj-Napoca stand out for their attractiveness and rapid development, while favorable Romanian government measures regarding taxation and regulatory structures enhance the appeal of investments.

In this article, discover why Romania has become a focal point for investors looking to maximize returns in a dynamic and expanding market.

Why Invest in Commercial Real Estate in Romania?

Current Economic Factors in Romania

• Romania is currently experiencing moderate economic growth, with a slowdown projected to 1.3% for 2025 according to the World Bank, following growth of 3.6% in 2024. The outlook for 2026 and 2027 is for gradual growth, at 1.9% and 2.5% respectively. This slowdown is due to weakened external demand, but domestic consumption remains a key driver, supported by rising real wages and consumer credit.
• Inflation remains a concern, reaching 5% in February 2025, mainly due to rising food and service prices. This has led to restrictive monetary policies.

Political Stability and Government Initiatives

• Romania benefits from relative political stability, allowing for the implementation of investment-friendly policies.
• The government is pursuing a public investment program, particularly in infrastructure (transport, energy, digital), often supported by European funds.
• Initiatives such as administrative simplification and the digitalization of public services are also underway to attract foreign investors.

Infrastructure Development

Infrastructure projects, including improvements to road, rail, and energy networks, are a strategic focus for the country. These investments are essential for improving connectivity and supporting the growth of sectors such as logistics and commercial real estate.

Expanding Commercial Sectors

Sector	Current Dynamics	Investment Opportunities
Retail	Strong growth, development of new shopping centers	Creation of new retail spaces, retail parks, urban logistics
Offices	Sustained demand in Bucharest and major cities	Development of modern offices, coworking, business services
Logistics	Boom with e-commerce, need for modern warehouses	Investments in logistics hubs, supply chain

Rental demand remains high, particularly in the modern office and retail segments, supported by urbanization, the rise of the middle class, and digitalization.

Real Estate Market Trends and European Comparison

• The Romanian real estate market stands out for its potential returns above the Western European average, especially in offices and logistics, where yield rates can exceed 7-8%, compared to 3-5% in mature markets like Germany or France.
• Real estate prices have seen steady growth, although more moderate recently, linked to the economic slowdown and rising borrowing costs.
• Rental demand remains robust, but the trend is towards stabilization of rents, particularly in residential, while logistics and retail remain dynamic.

Tax Advantages and Incentives for Foreign Investors

• Romania offers a competitive tax regime, with a corporate income tax of 16%, one of the lowest in the EU.
• Specific incentives exist:
  • Partial or total tax exemptions for certain investments in industrial or technology parks.
  • Public or European subsidies for projects that create jobs or have high added value.
  • Possibility of recovering VAT on real estate investments under certain conditions.

Summary of Opportunities

• Opportunities in growing sectors (offices, retail, logistics).
• Returns above the European average.
• Attractive tax environment and investor support policies.
• Solid rental demand, despite the cyclical slowdown.

Key Takeaways

Romania combines an attractive real estate market, high returns, tax incentives, supported infrastructure development, and political stability, making it a prime destination for foreign investments.

The Different Types of Commercial Properties Available in Romania

Property Type	Typical Location	Common Size	Potential Returns	Current Market Trends	Example of Successful Investment
Offices	City centers, business districts, urban peripheries	500 m² to >10,000 m²	7% to 9% gross/year	High demand in Bucharest, growth of telecommuting, modernization of spaces	Leasing of an office building in Bucharest by an international investment fund
Retail Spaces	City centers, shopping centers, main road axes	100 m² (boutique) to >5,000 m² (supermarket)	6% to 8% gross/year	Expansion of shopping centers, rise of e-commerce, format adaptation	Acquisition of a retail park in Cluj-Napoca by an Austrian group
Warehouses / Logistics	Urban peripheries, industrial zones, near highway axes	2,000 m² to >50,000 m²	8% to 10% gross/year	Strong growth linked to e-commerce, development around Bucharest and Timisoara	Development of a logistics hub near Bucharest by an international operator
Hospitality	City centers, resort towns, tourist areas	30 to 150 rooms	6% to 9% gross/year (pre-Covid)	Post-pandemic recovery, increase in tourist demand, renovation of hotel stock	Repositioning of a 4* hotel in Brasov by a local investor

Specific Characteristics by Property Type

• Offices: Primarily located in major cities (Bucharest, Cluj-Napoca, Timisoara), these assets offer flexible spaces, often in modern buildings with services and parking. Returns are attractive, especially for “prime” buildings. Supply is adapting to the growing demand for flexibility and sustainability.
• Retail Spaces: Independent shops are found in city centers, but the majority of investments focus on shopping centers and retail parks on the outskirts. Size varies by format (boutique, supermarket, shopping mall). The sector is influenced by the rise of e-commerce and the search for innovative concepts.
• Warehouses / Logistics: These properties are strategically located near major cities and transport routes. The rise of online commerce and the modernization of supply chains are strongly stimulating this segment. Recent facilities are sought after for their high standards (ceiling height, automation).
• Hospitality: Hotels in Romania are present in historic centers, mountain and seaside resorts. The segment is diverse (budget hotels, boutique hotels, international chains). After the pandemic, the market is experiencing a recovery, driven by the growth of domestic and international tourism.

Romanian Market Trends

• Demand for offices and logistics warehouses is supported by economic growth and European integration.
• Retail is renewing itself, combining customer experience and last-mile logistics.
• Hospitality benefits from a gradual recovery, with investments in modernization and energy efficiency.
• Foreign investors remain active, attracted by returns above the EU average.

Examples of Successful Investments

• An international fund acquired several “prime” office buildings in Bucharest, showing a high occupancy rate.
• An Austrian investor developed a next-generation retail park in Cluj-Napoca, quickly leased to international brands.
• A European logistics operator built an XXL warehouse near the A1 highway, fully leased to e-commerce giants.
• A local group renovated a historic hotel in Brasov, now ranked among the best tourist addresses in the country.

The Romanian commercial property market stands out for its diversity, attractive returns, and growth potential supported by the modernization of the economy and appeal to international investors.

Analysis of Profitability and Risks Related to Investments

Romania positions itself among the most attractive commercial real estate markets in Central and Eastern Europe, driven by competitive taxation and a favorable macroeconomic context.

Indicator	Value/Assessment in Romania	European Comparison
Average Gross Rental Yield	6 to 7% (offices, retail, logistics)	Lithuania: ~5.65%; Hungary: similar; Western Europe: often lower

Current Trends in the Romanian Real Estate Market

Evolution of Real Estate Prices in Romania (2019-2025)

Year	Average Annual Price Change (%)	Main Comments
2020	+8.3	Post-pandemic growth peak
2021	+7 to +8	Sustained growth
2022	+8.5	Highest increase, inflation effect
2023	+4 to +7	Slowdown, but stable growth
2024	+4 to +7	Moderation, regional disparities
2025 (Q1)	+5.2	More moderate growth expected

• Prices have been rising again since 2020, driven by the increase in living standards, rising wages, the return of the Romanian diaspora, and the arrival of Ukrainian refugees.
• The most expensive cities remain Cluj-Napoca, Bucharest, and Brașov.

Current Mortgage Interest Rates

• Mortgage interest rates remain high in 2024-2025, limiting the purchasing power of some households and dampening demand in a context of economic and political uncertainties.
• The National Bank of Romania has maintained its key interest rates at a high level to counter inflation, which is slowing but remains above the 3.6% target.

Fast-Growing Cities and Regions

• Cluj-Napoca: fastest growth, record prices per m².
• Bucharest: dynamic market, high transaction volume.
• Brașov, Timișoara, Iași: sustained development, growing attractiveness due to employment, universities, and the IT sector.
• Constanța: dynamism linked to tourism and port logistics.

Economic and Political Factors Influencing the Market

• Economic Factors:
• Income growth and urbanization.
• Return migration (return of the diaspora, arrival of Ukrainian refugees).
• Declining inflation, but still present.
• High interest rates limiting creditworthiness.
• Political Factors:
• Political uncertainty (elections, government instability).
• Indirect impact of the war in Ukraine on demand and investor confidence.

Recent Statistics on Supply and Demand (Commercial Sector)

Sector	Demand Trend	Supply Trend	Rent Evolution
Offices	Moderate increase	Many new projects	Stable rents
Retail	Strong demand	Adapted supply	Slight increase
Logistics/Industrial	Strong growth	Rapid development	Rising rents

• In 2024, the volume of residential transactions increased by 6.6% (169,000 units), after a low point in 2023.
• The commercial sector benefits from sustained demand, especially in logistics and modern offices, driven by the rise of e-commerce and industrial relocation.

Comparison with Other Eastern European Markets

Romania remains attractive compared to Poland, Hungary, or the Czech Republic, with still lower real estate prices but faster growth.

Central European markets are more mature and offer greater stability, but the potential for price growth in Romania remains significant.

Government Regulations and Their Impact

• The Romanian government has implemented measures to support homeownership (Prima Casă/Noua Casă programs).
• The regulatory framework remains favorable to foreign investment, with few restrictions on property acquisition for EU nationals.
• However, local property and transaction taxes remain stable, with no major reforms announced for 2025.
• Discussions on stricter regulation of short-term rentals and energy standards are ongoing.

Medium and Long-Term Forecasts (Commercial Real Estate)

• Expected growth, especially in the logistics segment (warehouses, e-commerce platforms).
• The supply of modern offices should continue to increase, but a stabilization of demand is anticipated after the telecommuting wave.
• Persistent attractiveness for international investors thanks to economic growth, infrastructure catch-up, and the relative stability of the regulatory framework.

Key Takeaways:

The outlook for the Romanian real estate market remains positive in the medium term, despite cyclical uncertainties. The dynamics of major cities, the growth of the logistics sector, and the resilience of residential make Romania a market to watch in the region.