Wednesday, 27 August 2025
Romania continues to attract interest from investors considering industrial and office developments in Central and Eastern Europe (CEE), supported by government incentives that can cover up to 70% of eligible project costs, according to Colliers’ latest report, “How Government Incentives Shape Industrial & Office Real Estate in CEE.” This level of support offers a notable advantage compared to other regional markets. However, Colliers experts note that incentives alone are insufficient to offset concerns regarding internal economic imbalances and political uncertainty.
Romania recorded €1.7 billion in announced manufacturing investments in 2024, potentially creating more than 8,900 jobs, according to data from fDi Markets. Despite strong government support, Romania lags behind peers such as the Czech Republic, Hungary, and Poland, each of which attracted between €2.5 billion and €2.9 billion in manufacturing investment in the same period.
“Romania stands out for its level of government support, especially in the manufacturing sector,” said Victor Coșconel, Partner and Head of Leasing, Office & Industrial Agencies at Colliers. “However, state aid is just one element influencing investment decisions. Broader concerns, including global and domestic uncertainties and potential fiscal policy changes, continue to affect investor sentiment.”
In the services sector, while many office projects are not directly eligible for financial assistance, secondary cities like Cluj-Napoca, Iași, and Timișoara offer indirect benefits, such as local tax incentives and access to strategic tenants. These advantages can strengthen competitiveness in the leasing market for owners who leverage them effectively.
Romania also offers a competitive labour market, with one of the best labour productivity-to-wage ratios in the EU. However, the stock of modern logistics and office space remains relatively low, suggesting room for further development.
“Government incentives can help attract key tenants, but other factors such as policy transparency, economic stability, and market fundamentals are critical to maintaining Romania’s competitiveness,” Coșconel added. “Despite challenges, CEE remains a strong investment destination, with 2024 data confirming market recovery, including a 138% increase in investment volumes in Poland.”
Colliers notes that Romania, along with Poland, Hungary, the Czech Republic, Slovakia, and Bulgaria, accounts for nearly 90% of modern industrial stock in the CEE-13 region. With only 0.7 square metres of logistics space per capita compared to up to 3 square metres in Western Europe, the region continues to show long-term growth potential. Additionally, regulatory pressures such as the European Green Deal and ESG requirements are expected to drive further investment in sustainable real estate and smart technologies.
Source: Colliers
