Romanian Real Estate Market H1 2025

In a year defined by political shifts and significant economic challenges, Romania’s real estate market has been characterized by both caution and emerging opportunities. Investments remained broadly in line with the first half of last year, mirroring the wider European trend. The office sector, however, was negatively affected by rising inflation, political uncertainty and labor market pressures, resulting in weaker-than-average performance. By contrast, the industrial sector continued to outperform, attracting new entrants. The residential market was the first to feel the impact of upcoming tax changes and austerity measures scheduled for August, though their effects are expected to extend across all segments of the Romanian real estate market, albeit unevenly.

In the second half of the year, investment activity is expected to remain stable, focusing on ongoing transactions, while high interest rates are likely to keep upward pressure on yields. Commercial sectors are expected to continue the trends seen in the first half, with the imminent sharp acceleration in inflation likely to result in a more stagnant overall outcome, as both owners and occupiers hold off in anticipation of a rebound projected for next year.