Trends in the real estate market in Romania: Retail and industrial support growth, offices and residential held back by limited supply

The retail segment became the main driver of the real estate market in Romania this year, closely followed by the industrial segment, while the office segment saw a decline in 2025 after intense rental activity in the last two years. On the housing market, supply remains limited keeping prices high, shows an analysis by PwC Romania based on public data available in the market.

Deliveries of new retail space are expected to increase by 27% this year compared to the previous year, and by 2027 the stock of retail space in Romania will exceed 5 million square meters. The retail sector is constantly growing, supported by high interest from investors and the entry of new brands into the market.

Fiscal changes, the slowdown of economic growth and especially the reduction of consumption could limit the evolution of the retail segment in the short term, but stable demand and diversified tenants ensure its resilience.

Almost 100 new tenants entered the market in Central and Eastern Europe this year, 40% more than in 2024, and Romania is one of the main targets. Among the brands that recently entered the market are Sports Direct, Worldbox, Wendy's and Funky Buddha, and Action, Holland & Barrett, Tous are also preparing to open their first stores in Romania.

Mall expansions increase deliveries in the retail segment

Deliveries of new commercial space this year will amount to 215,000 square meters, up 27% from 2024, of which 161,000 square meters have already been delivered in the first nine months of the year. The new spaces come from the expansion of existing malls (Moldova Mall Iași, Iulius Mall Suceava), major renovations (Agora Arad) and the inauguration of new commercial parks (Zacaria Retail Park Cisnădie).

With a stock of 4.75 million sqm of commercial space at the end of September 2025, Romania occupies the second position in Central and Eastern Europe, after Poland.

Despite this year's deliveries, the vacancy rate of retail space remains very low – below 1% in Bucharest and around 3% in major cities – reflecting strong demand. In this context, the average rent for retail spaces in Bucharest was 11% higher in the second quarter of 2025 compared to the last quarter of 2024.

The retail projects under development total 273,000 sqm and will raise the total stock to 5 million sqm in 2027. The most important contributions come from the new Rivus Cluj-Napoca mall and the expansions of Arena Mall Bacău and Promenada Bucharest.

High demand in the industrial segment

The industrial segment benefits from an increase in investor confidence in the Romanian market, as a result of the entry into the Schengen area, with a decrease in vacancy rates and an increase in rents for premium spaces. Demand is especially directed towards strategic locations, which support diversification and last-mile logistics, boosted by e-commerce.

Leasing activity in the industrial segment increased this year, with 750,000 sqm of industrial space being leased in the first nine months. The net demand represented 60% of the total transactions, respectively 450,000 sqm.

Bucharest represents 79% of the total leased area, continuing the trend from the beginning of 2025, being supported by infrastructure and road connectivity. By sub-segment, logistics represents 74% of total rentals, and storage and production each 11%.

On the supply side, almost 300,000 square meters of new logistics and industrial spaces will be delivered to the Romanian market this year, half of which in Bucharest and 38% in the west of the country. New deliveries from 2025 have decreased by 55% compared to the average of the last five years, but new projects under development in the industrial segment total 412,000 sqm, of which 76% around Bucharest, where CTP and WDP are the most active developers.

With 8.12 million sqm of operational industrial space at the end of the third quarter, Romania currently ranks third in Central and Eastern Europe. Bucharest remains the country's main logistics hub, but major projects such as the Moldova Motorway (A7) and the Bucharest Beltway (A0) are stimulating industrial growth, improving connectivity and creating new development opportunities in previously underutilized areas.

Decrease in the office segment

The office segment has seen a drop in leasing activity this year amid a lack of new deliveries. New project developments, significantly lower than in the last three years, have increased the pressure on space availability, and vacancy rates are still on a downward trend, especially for well-positioned spaces.

One of the factors that slowed down the evolution of the office segment is the complex process of authorizing new projects. At the same time, new developments in the office segment must meet increasing quality demands from tenants, particularly in terms of sustainability, efficiency and long-term value. Thus, the segment has become quite exclusive, new projects being developed by experienced companies. The projects under development total about 170,000 sqm, the most important being the second phase of Timpuri Noi Square, Arc Project and One Technology District.

The stock of office spaces in Romania totaled 4.51 million sqm at mid-year, of which Bucharest holds 76%, respectively 3.42 million sqm. Thus, Bucharest still ranks fourth among the capitals of Central and Eastern Europe.

Limited supply keeps prices high in the housing market

The residential segment continues to be unbalanced, marked by falling supply and growing demand. Supply remains limited as a result of decisions made by real estate developers in recent years to curtail investment in new projects amid uncertain economic activity and rising bank loans. Added to this is the package of fiscal measures adopted this year, of which the increase in the VAT rate for new homes to 21% had a direct impact on the real estate sector.

Demand for housing rose 15 percent from last year, while supply fell 18 percent, according to market data. Thus, the average sale price increased this year by 15%, to EUR 1,910/m2. Paradoxically, although we are in a context that would favor the seller, buyers have more bargaining power because they are more cautious, prioritizing quality and location, and properties are harder to sell, with average transaction times of 51-70 days in major cities. This behavior puts pressure on vulnerable projects that depend on liquidity from buyers, while developers with solid financing can afford to wait.

And in the rental segment, a similar dynamic is observed, namely the decrease in supply by 19% and the increase in demand by 18%, which led to a 6% increase in the average rent compared to 2024.

In the short and medium term, the market will remain tense, with a slight tendency to stabilize. Limited supply and selective demand will keep prices high, favoring developers with solid portfolios and stable financing. Investors and buyers will continue to closely monitor tax changes and financing costs.

Cristina Rusen, PwC Romania Director

Diana Remus, Senior Consultant PwC Romania

Article supported by PwC Romania