Romania’s Real Estate market: Sustainable growth and optimistic prospects for 2025

Romania ended 2024 with a remarkable performance in the real estate market, confirming the growth trends recorded over the past decade. According to data from The Concept in its Q4 2024 study, which you can download here, the average price per square meter reached EUR 1,699, up 14% from 2023 and 139.6% from 2014, when the market hit its lowest point following the global financial crisis.

This increase, adjusted for inflation, represents a real-term growth of 52.1%, highlighting that price evolution has generally been sustainable and correlated with economic progress. This pace has been supported by rising incomes, access to mortgage financing, and consistent demand in the residential market.

A Decade of Growth – 2024 Marks a New Maturity Phase for the Market
In 2014, the average price per square meter was just EUR 708, reflecting a period of economic uncertainty. Over the past 10 years, the market has experienced steady growth, with moderate but consistent annual increases. Double-digit growth in 2016, 2017, and 2024 indicates phases where demand surged significantly, driven by favorable economic and social factors.
For 2024, this growth is based on several factors:
1. Rising Incomes – The average net salary in Romania reached EUR 1,059 in October 2024, while in Bucharest, it was EUR 1,321, improving housing affordability.
2. Consistent Demand in Major Cities – Cities like Bucharest, Cluj-Napoca, Iași, and Timișoara continued to attract both end-buyers and investors interested in the rental market.
3. Recovery of Mortgage Lending – In 2024, 51% of real estate transactions were financed through mortgages, marking a recovery from previous years when cash transactions dominated the market.

Purchasing Power Index Indicates a Balanced Market
A key indicator of housing affordability is the Purchasing Power Index (PPI), which measures how many net average salaries are needed to buy one square meter of housing. In Q4 2024, this index stood at:
• 1.6 nationwide
• 1.4 in Bucharest
These values indicate a stable market where salaries have managed to keep pace with price increases. Although the PPI has slightly increased compared to previous quarters, the current levels are considered affordable compared to other countries in the region.

Transaction Numbers Are on the Rise Again
In 2024, Romania’s real estate market recorded 168,960 transactions nationwide, marking a 6.6% increase compared to 2023. This recovery underscores buyers’ and investors’ confidence in the real estate market.
In Bucharest, the number of transactions reached 50,884, with an annual growth of 4.7%, consolidating its position as the main driver of Romania’s real estate market.
While Bucharest remains the leader in terms of volume, certain counties have shown remarkable performance:
• Iași: +38.5%
• Dolj: +24.7%
• Constanța: +17.8%

These increases reflect the rapid economic development in these regions, attracting both local buyers and investors.
“Romania’s real estate market remains strong, and the growth recorded in 2024 is a clear sign of market maturity. If economic and social factors remain favorable, we can expect continued growth at a more balanced pace,” explains Daniel Tudor, CEO of The Concept Group and CIO of Hubix Investment.
Rental Yields Remain Competitive
Another factor driving real estate investment interest is the average gross rental yield. In 2024, the most attractive yields were recorded in:
• Bucharest: 6.39% – 6.70%
• Iași: 6.18% – 5.74%
• Constanța: 5.86% – 6.45%

In cities like Cluj-Napoca, where prices are higher, yields were lower, averaging 4.26% – 4.29%. This reflects Cluj’s market maturity, which has reached a high level of development but offers limited opportunities for investors focused solely on rentals.
Outlook for 2025 – Continued Growth or Stabilization?
Given the strong performance in 2024, the outlook for 2025 remains optimistic but with a degree of caution. If global economic factors remain favorable, Romania could continue to see moderate increases in prices and transaction volumes.
However, several factors could influence the market:
1. Mortgage Interest Rates – A reduction in rates would stimulate demand, while an increase could slow down transactions.
2. Increase in New Housing Supply – If developers launch a significant number of projects, the market could stabilize, benefiting buyers.
3. Economic Growth – Market stability will depend on wage growth and overall confidence in the economy.

2024 was a positive year for Romania’s real estate market, with sustained price increases, transaction recovery, and competitive investment yields. While several factors could influence market dynamics in 2025, the overall outlook remains optimistic, pointing to continued growth as long as economic conditions remain stable.
This analysis confirms that real estate remains one of the safest investments in Romania, and current trends show the market’s ability to attract both end-buyers and investors.

IULIUS announces the vision proposed for the project in Constanta

IULIUS Company is announcing the vision proposed for the most extensive reconversion, bioremediation and urban revitalization project in Romania, developed on a 38 hectares land in Constanța. The project is reshaping the way urban development is made and represents a vision whereby Constanța will be put on the map of Europe’s major urban landmarks deemed magnet cities. A best practice model for aligning a private investment upwards of EUR 800 million with the urban development strategies of the city and the country, which focuses on creating a ‘city within the city’ type integrated urban complex, with complementary uses, that will help transform the area into a hub for regional, economic, social and touristic development:

• cultural and educational – to support local initiatives, develop the academic community, and diversify the leisure offer;
• retail – with a complete mix of services, brands, and facilities that support the local entrepreneurship and address the community’s requirements;
• public utility functions and services;
• entertainment and edutainment – with new concepts, marking regional or even national premieres, that support the city’s attractiveness as a year-round tourist destination, while also providing locals with new entertainment opportunities in the city;
• sports and leisure facilities;
• park and botanical garden – fitted with hundreds of mature trees, providing a green backdrop, environmental benefits, and set to become a community hub;
• office – to draw companies from industries with added value and to diversify career opportunities for young people, geared towards human resource retention; www.iuliuscompany.ro pagina 1 din 4 • pedestrian, bicycle and vehicle traffic connectivity and mobility solutions – to support the implementation of the regeneration, mobility and connectivity solutions of the public administration for the Anghel Saligny development area.

The vision proposed for the project is signed by Foster + Partners, the architecture studio that created some of the most spectacular, challenging and impactful urban developments across the globe, and focuses on creating a new hub of Constanța, a dynamic and people-centered one, celebrating the local heritage and progress alike. A regeneration of downtown Constanța, which is currently a polluted former industrial site.

“We are excited for the opportunity to be part of Constanța’s future. Our urban plan embraces sustainability, inclusivity and innovation, showcasing how the industrial past of Constanța will become one of its greatest assets. In transforming the urban wasteland into a vibrant hub, we invite locals, investors and tourists to be a part of this transformative journey towards a city that honors its history and embraces a future brimming with life. This is a regenerative journey, involving an entire team of specialists for solving its many challenges. Thus, our vision prioritizes the environmental focus, by integrating green corridors, remediating a hydrocarbon-contaminated land, removing boundaries and developing a sustainable development that compliments harmoniously the existing cityscape,” said Maximilian and Daniel Zielinski, Senior Partners Foster + Partner.

“Constanța is impressive through its history and its defining mosaic of culture and civilization, which is why our project will be designed to honor this heritage. Our wish is to make Constanța a year-round destination, 365 days a year, by establishing a new point of interest, a new destination and new opportunities to promote the city as a business, cultural and social hub. We will do so with the same commitment to our development model, that is restoring a previously industrial area back to the city, reconverted as a living part thereof, smoothly integrated with the urban regeneration masterplan of the city, with a lot of green spaces, new experiences, and consulting with the community. The new development will feature an impressive diversity of entertainment venues, coffee shops, restaurants, first-to-market family leisure concepts, sports infrastructure, thus becoming a community space, the most vibrant part of the city, in an area that is currently cut off from the urban life,” said Raluca Munteanu, IULIUS Development Manager.

M Core buys Shopping City Suceava from Argo Capital

British group M Core has signed for the acquisition of Shopping City Suceava shopping center from real estate investor Argo Capital, marking the largest transaction in the last five years involving the full sale of a mall. This agreement also marks the sale of the last major asset of the Argo Capital group in Romania.
Shopping City Suceava has a rentable area of 43,100 sqm, where over 100 retailers such as Carrefour, Leroy Merlin, Mobexpert, Decathlon, Sinsay, New Yorker, KFC operate, according to data from real estate consulting company iO Partners, which advised Argo Capital on the transaction.

“Argo has played a key role in the development of the Ukrainian retail market since 2006 and, as the market has evolved, we have decided to withdraw from Romania and focus on the Ukrainian market, which we anticipate will become extremely dynamic once the war ends,” said Andreas Rialas, Director of Argo Capital.

“This acquisition aligns with our strategic expansion objectives in Romania. We are actively exploring all opportunities in the retail sector to develop our portfolio and strengthen our presence in the market,” said Sebastian Macdonald-Hall, Chief Investment Officer at M Core and Co-CEO for Romania at LCP.

Liebrecht & wooD completes first phase of Liziera de Lac project

The first phase of Liziera de Lac project, the residential complex built on the shores of Lake Tataru by Belgian real estate developer Liebrecht & wooD, is complete and almost all 94 houses are already sold. This year, in the second phase of the project, another 39 homes will be delivered.

“The first PUZ that we have in Liziera de Lac is for 420 homes and we want to complete it in the next few years. Then, we will go to the next PUZ, which will be for another 400-500 homes, because our plan is to gradually reach over 3,000 homes. The first phase of the Liziera de Lac project is completed and almost all of the 94 homes are sold. This year, in the second phase, another 39 homes will be delivered,” said Patrick Van Den Bossche, the founder of Liebrecht & wooD.

The first phase of the project includes, in addition to homes, recreational spaces, basketball and tennis courts, a playground, a promenade, bicycle paths, spaces for sports activities, but also areas for relaxation and spending free time. In addition, the complex also has a semi-Olympic swimming pool, named after David Popovici, the first Olympic male champion in the history of Romanian swimming, who also lives here.

Source: zf.ro

Veranda Mall shopping center put up for sale

Veranda Mall shopping center, owned by the Pogonaru family, the Pavăl brothers, Evergent and Erste Bank, has been put up for sale and has entered the radar of interest of real estate investors AFI Europe and M Core, according to sources in the real estate market. The value of a possible transaction of Veranda Mall is estimated at around EUR 80 million.

If AFI Europe were to buy Veranda Mall, this would be its first acquisition made in this real estate sector in Romania. The main acquisitions made by AFI Europe at a local level have focused on the office sector.

As for M Core, the British investor has just bought its first mall in Romania, Shopping City Suceava, and is also in discussions for the acquisition of Focșani Mall. If it were to buy Veranda Mall, M Core would officially enter the Bucharest mall market, a sector in which it is present only with retail parks.

Veranda Mall was inaugurated in 2016 following an initial investment estimated at EUR 60 million, refinanced in 2018 with a 15-year loan of EUR 34 million from CEC Bank. In 2019, the shopping center was expanded to its current area of 34,000 square meters, after an investment of about EUR 10 million.

Source: Profit.ro

Developer Dimri prepares to expand Dimri Ghencea project

Israeli real estate developer Dimri is preparing to start work on the new development phases of the Dimri Ghencea project, which will include another 1,800 apartments, after the widening of Prelungira Ghencea, one of the busiest arteries in Romania, began.

Dimri entered Romania 17 years ago with the plan to build a neighborhood in Ghencea with 25 blocks and over 2,500 apartments, but underdeveloped infrastructure has significantly contributed to slowing down this plan.

“The start of infrastructure works at Prelungira Ghencea pushes us to prepare for the next stage of development of Dimri Ghencea. It is a positive sign and will certainly accelerate real estate activity in the area. Eventually, the tram will also reach here. From the current phase, we have delivered 96 units, and the remaining 288 apartments are to be completed in April-May and we are already preparing the start of the next phase with 1,800 apartments, also developed in stages,” stated Dimri representatives.

In Prelungirea Ghencea, Dimri owns a land with an area of 13 hectares on which it plans to develop 25 blocks, 6 swimming pools, an office building and a shopping mall.

Source: Profit.ro

World Class inaugurated 2,300 sqm health & fitness club in Cosmopolis Plaza

The largest health & fitness club World Class in the North of the Capital, and the 47th in the network, was inaugurated in Cosmopolis Plaza. With an area of over 2,300 square meters, the World Class club in Cosmopolis Plaza also includes the first indoor swimming pool in the complex.

“World Class, the first health & fitness network in Romania, continues to expand its presence in growing areas because our main mission is to make Romanians more active. In the Cosmopolis community, we have brought premium workout and swimming facilities, as well as a strong team of health and fitness experts, in order to contribute to a healthier lifestyle for the more than 15 thousand residents of Cosmopolis, as well as for the residents of the neighboring communities.

In the 25 meters long and 13 meters wide swimming pool with 7 lanes, we will focus on teaching as many adults and children as possible to swim, and in the club’s rooms we offer opportunities for physical activities and classes, from fitness, personal training, Skill X and dedicated children’s programs,” says Kent Orrgren, CEO of World Class.

“Because Cosmopolis has become city-like in size, we want to offer our residents all the services they need as close to their home as possible. The health and fitness component is a very important one, which is why the partnership between World Class and Cosmopolis is proof of our commitment to encouraging healthy living for our customers, as well as our emphasis on premium services.

World Class Cosmopolis can be accessed both from the Bucharest Ring Road, via Tunari, and soon from the A3 highway, a road that will transit the new development phase, Cosmopolis 2.0”, emphasizes Ozan Tuncer, CEO of Cosmopolis.

Garanti BBVA Romania has granted EUR 5 million loan to Alca Industrial Group

Garanti BBVA Romania has granted a EUR 5 million loan to Alca Industrial Group to finance the Peştera Wellness & Spa project, a 5-star hotel located in the Peştera-Padina tourist resort, in the Bucegi Mountains.

“The Peştera Wellness & Spa Hotel is a symbol of innovation in the hospitality sector and a catalyst for the growth of the local economy, as well as for the development of tourism in the region,” says Bilge Demirer, Deputy General Manager, Enterprise Banking Area, Garanti BBVA.

The facility, which officially opened its doors to tourists in December 2024, is located in the middle of some of the most emblematic tourist attractions, such as Babele, the Sphinx, the Ialomiţei Cave, the Tatar Gorges and Bolboci Lake.

Cargus Romania has a new CEO

The courier company Cargus, taken over in 2019 by the private investment fund Mid Europa Partners, announces that Belgin Bactali, who previously held the position of CFO of the company since 2019, has officially taken over the position of CEO, succeeding Yannick Mooijman, who decided to retire to explore new opportunities.
Belgin Bactali has over 23 years of experience in developing successful financial strategies and coordinating key projects in renowned companies in the field of transport and logistics.

“It is an honor to take over the leadership of Cargus in this new chapter of its evolution. We will build on the solid foundation already created, developing innovative solutions that meet the needs of our customers and that differentiate us in the industry. We will strengthen our position on the courier market, remaining a trusted partner for customers and collaborators,” says Belgin Bactali, the new CEO of Cargus Romania.

PENNY Romania relocates one of its stores to a new commercial space

PENNY Romania marks the beginning of 2025 by relocating its store in Odorheiu Secuiesc to an expanded space, located on Târgului Street, no. 1A, Harghita County. The store has a sales area of 851.39 sqm and offers 80 parking spaces.

PENNY currently has 416 stores nationwide. For 2025, the company plans to open 35-40 new stores, thus consolidating its network that already had 416 units at the end of 2024.

PENNY will also complete the construction of its fifth logistics center, essential for supporting operational growth.

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