Thursday, 28 August 2025
A recent Colliers research report, supplemented by insights from a CIJ EUROPE Q&A with Sînziana Oprea, Director of Land Agency at Colliers Romania, highlights renewed activity in the country’s land market. After a subdued 2024 shaped by political uncertainty and cautious investor sentiment, the first half of 2025 has seen momentum return. Land acquisitions for commercial real estate projects (excluding industrial) approached €200 million, slightly below last year’s volume, yet market sentiment points to stronger activity in the second half of the year and a recovery trajectory into 2026.
Retail and residential plots remain the most active segments. Developers and retail chains are expanding into small and medium-sized cities where land values are moderate but transaction volumes are high. In Bucharest and other major cities, residential land continues to draw attention from established developers, despite slower economic growth and recent fiscal changes.
In the capital’s northern metropolitan area, investors are increasingly targeting large tracts of land for housing estates or villa compounds, reflecting a trend toward lower-density living. Retail demand is similarly expanding, with interest from both established developers and new entrants seeking proximity-based projects such as retail parks, built-to-suit formats, and shopping galleries.
“The land market is being driven by retail operators and major developers, complemented by new buyers and growing interest in niche projects such as medical, education, or data centres,” said Sînziana Oprea, Director of Land Agency at Colliers Romania. “This diversity shows the market is maturing and confirming its long-term potential.”
Demand for office development plots remains weak, with many sites being repurposed for residential or student housing projects, better aligned with current market realities and flexible work patterns.
Meanwhile, industrial land is experiencing rising demand, particularly near major cities and along new infrastructure corridors. Developers are securing plots for logistics parks and manufacturing facilities, driven by regional supply chain realignments. Colliers notes this trend could position Romania as an attractive hub for industrial investment, with spillover benefits for local economies.
The changing fiscal environment is shaping buyer strategies. Speaking to CIJ EUROPE, Oprea noted that some developers are pausing expansion plans, while others see opportunities to negotiate better deals. “Buyers are more cautious on pricing and are seeking transaction structures that minimize risks. However, prime, well-located plots with permits remain highly competitive,” she said.
Due diligence now focuses heavily on permitting risks. Delays in securing zoning and building approvals have created a divergent pricing trend, with permitted plots appreciating while non-permitted sites are losing value.
Foreign investors are also reshaping their strategies. Supply chain realignments and Romania’s infrastructure upgrades are spurring new interest, particularly in retail and logistics. “Competition for prime land often drives up prices by 5–10% when multiple developers target the same site,” Oprea explained.
With real estate projects typically requiring at least two years to deliver, many investors are positioning themselves for the expected economic recovery in 2027–2028. “Developers with long-term strategies see current uncertainty as an opportunity,” said Oprea. “Lower competition allows them to secure strategic sites now at attractive prices, ensuring that by the time projects are delivered, the market will be in recovery.”
Colliers also highlights a steady pipeline of new plots coming onto the market, often from investors refocusing on core businesses. While uneven pricing persists—urbanised, well-located plots command premiums while poorly connected sites see price drops—the outlook remains moderately optimistic.
“As the cycle of projects conceived now will align with the anticipated economic rebound in 2027–2028, the land market should remain dynamic,” Oprea concluded.
