Tuesday, 3 November 2026
Romania’s real estate sector continues to attract investor interest, supported by its economic scale, regional development and infrastructure investment. However, construction capacity, unpredictable permitting procedures and rising development costs are creating challenges for projects scheduled for 2027 and 2028. In an interview with CIJ.World, Corina Obretin, Business Development & Marketing Manager at Optim Project Management, discusses the risks facing developers, the importance of early project planning and what Romania must improve to strengthen its competitiveness in Southeast Europe.
CIJ.World: Where do you see the biggest gap between investors’ development plans and Romania’s ability to deliver new projects? What could delay developments scheduled for 2027-2028?
Corina Obretin: The biggest challenge is not necessarily the availability of investment capital, but the construction market’s capacity to deliver the projects being planned. Romania is experiencing a significant increase in public infrastructure investment, which is competing directly with private developments for contractors, skilled workers and construction materials. Developers preparing projects for 2027 and 2028 cannot rely on the same construction schedules and cost assumptions used in 2025.
Several factors could affect delivery. Permitting procedures remain difficult to predict, while major infrastructure projects are absorbing substantial contractor capacity. Securing experienced construction teams is becoming increasingly challenging. In addition, the EU’s Carbon Border Adjustment Mechanism is expected to place further cost pressure on certain imported construction materials.
From my previous experience working with general contractors on commercial fit-out projects, I have learned that many construction problems originate well before work begins. Incomplete designs, unclear project requirements and poorly prepared tender documentation frequently lead to delays, additional costs and contractual disputes. The decisions made during the planning stage often determine whether a project can be delivered within its original budget and schedule.
CIJ.World: What are the most common mistakes developers make at the beginning of a project that later affect construction costs and profitability? Are Romanian investors becoming more effective at managing these risks?
Corina Obretin: The most expensive mistakes often occur during the earliest stages of development, when their financial consequences are not yet apparent. Common problems include establishing a construction budget before the project requirements are fully defined, treating technical due diligence as a financing formality rather than an essential part of investment planning, and appointing contractors before responsibilities and risks have been clearly allocated. These decisions can create significant difficulties once construction begins, as changes that might have been resolved during design development can become costly contractual claims when discovered on site.
Romanian investors are becoming more sophisticated in managing these risks. Institutional investment and international capital have contributed to higher standards of project preparation and financial oversight. More developers now involve project and cost management specialists from the beginning rather than waiting until problems emerge during construction. However, some medium-sized domestic developers continue to regard professional advisory services as an additional expense rather than a means of protecting their investment.
One example of the importance of early coordination is our involvement in the redevelopment of the former Hotel Ambasador on Bucharest’s Magheru Boulevard into The Julius Bucharest. The original building dates from 1939 and requires extensive structural consolidation. Heritage properties present particular challenges because important technical risks may remain concealed until construction work begins. Optim has been involved throughout the process, from technical due diligence and concept development to detailed design, permitting and construction management. This continuity allows the engineers who identified potential structural problems during the initial assessment to work directly with the teams addressing them during construction. Maintaining that connection between design and execution reduces the risk of information being lost between project stages and allows technical challenges to be addressed more efficiently.
CIJ.World: Compared with other Southeast European markets, where does Romania have an advantage in attracting real estate investment, and where is it falling behind? What needs to improve in the next five years?
Corina Obretin: Romania’s principal advantages are its market size and diversified economy. Investment opportunities extend well beyond Bucharest, with regional centres such as Cluj-Napoca, Timișoara, Brașov and Iași attracting development activity. Industrial and logistics demand remains an important part of the market, while European funding is supporting improvements in transport infrastructure. These factors provide a substantial foundation for long-term real estate investment.
However, Romania has not yet translated its economic potential into the level of property investment liquidity that its market size might suggest. International investors recognise the opportunities, but uncertainty surrounding development procedures and taxation affects investment decisions. Lengthy permitting processes, unclear administrative deadlines and unexpected fiscal changes introduce risks that investors must account for when assessing potential returns.
Optim operates across Romania, Bulgaria, Serbia, Hungary and Croatia, giving us the opportunity to compare the challenges faced by developers in different markets. From our experience, Romania is rarely disadvantaged by a lack of investment opportunities. Its main weakness is the difficulty of predicting how long projects will take to move through the development process.
Over the next five years, three improvements would make a substantial difference: fully digitalised permitting procedures with enforceable statutory deadlines, a more stable and predictable fiscal framework, and a coordinated approach to addressing shortages of skilled construction workers. Greater certainty would allow investors to prepare more reliable financial models, reduce development risks and make long-term investment decisions with greater confidence. Romania already has the economic scale and development potential to compete effectively in the region. Improving the predictability of project delivery would help convert more of that potential into completed investments.
Source: © CIJ EUROPE
