Tuesday, 14 October 2025
In a recent CIJ EUROPE Q&A with Costin Nistor, CEO of Fortim Trusted Advisors, Romania’s commercial real estate sector is navigating a complex economic environment shaped by slower growth, persistent inflation and shifting investor priorities. According to Nistor, while the broader European context remains challenging, Romania’s property market continues to demonstrate resilience, particularly in retail and logistics.
Nistor explained that Romania is passing through a period of fiscal and legislative changes, with little concern from the authorities for stimulating economic growth. These measures overlap with difficulties across Europe, triggered by geopolitical uncertainties, global commercial tensions and rapidly changing business models. Even so, groups operating in Romania are keeping a vigilant eye on opportunities that arise during such times.
Despite these pressures, recent months have brought encouraging signs of recovery. In the first half of 2025, total real estate investment volumes in Romania reached €431.3 million, which marks a strong performance by regional standards. The office sector led with €189 million in transactions, while the retail market followed closely with €179 million. Retail parks in regional cities stood out as the most resilient and attractive segment, supported by rising consumer spending and demand for convenience-oriented shopping destinations.
“Retail assets are proving to be a solid investment, offering a reliable income stream and long-term potential,” said Nistor. He added that several high-profile retail transactions are currently in progress, suggesting the trend will only accelerate. By the end of 2025, he expects the retail segment to surpass the office sector and become the dominant asset class in terms of total transaction volume.
When asked about yield levels, Nistor noted that prime yields in Romania remain considerably higher than in other CEE capitals, but dynamics are shifting. He observed that there is upward pressure on yields, although the shortage of new projects is helping to counterbalance this, at least for the time being. In his view, the gap between investor expectations and achievable returns could narrow over the medium term, moving closer to the outlook of liquid buyers.
On the question of sector resilience, Nistor said that while office transactions such as Victoria Center and Ethos House have made headlines, they do not necessarily reflect a broader recovery trend. He argued that each of those deals was driven by specific circumstances. By contrast, appetite for retail projects, particularly retail parks, reflects a more general trend evident not only in Romania but across the CEE and EU regions. He pointed out that while the office sector may continue to generate deals, it is likely to remain under pressure for some time, whereas retail and industrial assets stand a better chance of remaining investor favourites.
International capital continues to play a crucial role in Romania’s investment market, accounting for more than half of transaction volumes in the first half of the year. However, Nistor underlined that domestic investors will be central to sustaining activity. He noted that attracting new international investors in the current environment is difficult, which means local capital—already an important driver in recent years—is likely to remain the most active in the near term.
Looking ahead to the second half of 2025, Nistor expects investment activity to remain strongest in retail and office, with hotel assets gaining ground as tourism continues to recover. He observed that the office market offers a sizable pool of investment product and is therefore likely to generate further deals, while retail is underpinned by strong fundamentals that will continue to attract capital. He added that hotel volumes could increase slightly as consolidation emerges as the next natural step, provided business and leisure tourism maintains its current trajectory. The industrial segment also has solid fundamentals, but in Romania it remains dominated by long-term owners and operators, meaning few assets are available for investors.
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