2023 was a year of slow progress towards an economic recovery, amidst ongoing conflicts exacerbating the existing crisis. Europe narrowly avoided a recession, while Romania saw modest economic growth alongside high inflation and a series of tax hikes affecting the private sector and investment climate. Against the backdrop of economic challenges and local hurdles, the Romanian real estate market underperformed in 2023: the office market’s recovery failed to inspire confidence among investors, the logistics sector experienced a decline in demand, and the residential market struggled throughout the year, showing a superficial growth towards year-end caused by upcoming tax changes.
Market players in the Romanian real estate industry approach the situation for 2024 with cautious optimism, believing that the worst has passed and anticipating a gradual recovery becoming apparent in the latter half of the year.
