The real estate market continues to evolve dynamically, with rapid and sometimes unexpected shifts driven by economic and societal developments. The residential sector is struggling with a shortage of new housing supply, while the office market is still in recovery mode following the pandemic. Meanwhile, the logistics and industrial space market is experiencing a boom. Each segment presents both opportunities and challenges, making real estate a profitable investment destination, particularly as Romania still lags behind more developed markets, according to Business Review.
Rising incomes over the past decade have enabled people to purchase better, more comfortable homes. However, demand has outpaced supply, with new housing construction failing to keep up. This imbalance is particularly evident in cities like Cluj-Napoca, where limited housing space has driven prices to the highest levels in the country.
“The residential sector will continue to benefit from steady demand for quality housing. The main opportunity lies in providing clients with top-tier buildings that integrate mixed-use functions. We are seeing growing interest in multifunctional housing that combines comfort with flexible workspaces and offers quick access to everyday commercial needs,” says Beatrice Dumitrascu, the CEO of the Residential Division at One United Properties. “This is more than a trend; we believe mixed-use developments have already become a defining feature of our real estate investments, as we have successfully built new communities across Bucharest”, added Beatrice Dumitrascu.
Despite macroeconomic challenges, Romania’s economy is maturing, and so is its population, and this is leading to more sophisticated housing demands. Growth is expected to continue, albeit at a slower pace across the broader economy.
“Romania’s residential market remains one of the most dynamic sectors in 2025. Urbanisation, rising disposable incomes, and evolving buyer preferences are fuelling demand for modern, energy-efficient homes,” say Jan Demeyere, co-founder and Architect at SPEEDWELL. “In this context, projects like Glenwood Estate in Corbeanca and The Meadows near Grivita Lake showcase the way we are addressing these needs. Glenwood Estate offers spacious, high-quality villas with ample green spaces, while The Meadows is designed for families seeking a modern lifestyle close to nature. Both are gated communities, ensuring safety and privacy for residents”, said Jan Demeyere.
“In 2025, the residential sector will likely dominate in terms of the number of projects, driven by sustained demand for housing in urban and suburban areas”, stated Didier Balcaen, co-founder and CEO, Speedwell.
“The residential real estate sector in 2025 will see a dynamic mix of opportunities and challenges. From rising material costs to increasingly stringent environmental regulations and the impact of fiscal, economic, and political shifts—this year will be shaped by the presidential elections,” says Victor Terhes, Sales Director at Bellemonde. “Amid these changes, demand for sustainable and technologically advanced homes in prime locations continues to grow. Gated-community housing complexes are also becoming more popular, offering buyers both social and security benefits. To capitalise on these trends, developers must embrace innovation and adopt new technologies to build more resilient and desirable communities”, added Victor Terhes.
An interesting aspect of Romania’s residential market is that more than half of all property purchases are made in cash, rather than through bank loans or other financing. This not only reflects buyers’ preference for savings over banks, but also reinforces the perception of residential assets as a solid investment opportunity.
“In terms of challenges in the residential sector in Q3 2024, we faced pending changes to the tax regime for construction workers, along with broader fiscal adjustments in Romania. Fast-forward to Q1 2025, and construction costs—particularly workers’ wages—have risen significantly,” says Ashton Topolinski, Partner and Head of Marketing & Branding at InteRo Property Development. “However, the investors’ perceptions of macroeconomic stability, taxation and labor market have improved compared with previous years,” Ashton adds.
“The main opportunity in the Bucharest residential sector in 2025 is investment. Bucharest and the secondary markets will benefit the most from the future real estate appreciation. Our clients are excited to buy apartments from InteRo Property Development because they understand the long-term growth of the Romanian market”, says Ashton.
The office segment
The office market is steadily recovering from the pandemic-era work-from-home model. However, the lack of demand in recent years put new developments on hold, while the need for modern office spaces has driven developers to upgrade older buildings (over 10 years old) to obtain green certifications. “From our ongoing interactions with both tenants and office space owners, we see a continued demand for modern office spaces with excellent accessibility, alongside a sustained trend of employees returning to the office. This demand is largely concentrated in central areas, where limited availability has led to rising rental prices. Another consequence is the reconsideration of older buildings, with many undergoing extensive renovations, as well as the development of adjacent areas offering similar facilities,” explains Vlad Damian, Head of A&T Investor Leasing at CBRE Romania.
”For many companies in the office sector, 2024 was a strong year. “Our company delivered outstanding performance last year. We signed both new leases and contract extensions exceeding 65,000 sqm of office space, surpassing our 2023 results,” says Fulga Dinu, Country Manager of CPI Romania. “We are continuously upgrading and improving our buildings to remain relevant in the market and meet our clients’ highest expectations. This includes remodelling, revamping, repositioning, and integrating the latest digitalization and ESG solutions”, said Fulga Dinu.
“Vastint Romania maintained a strong financial performance throughout 2024. Phase one of Timpuri Noi Square is now 100% leased, and we are witnessing high demand and interest in Business Garden Bucharest, where we are on track to reach the same percentage during this year. This project holds the highest LEED score in Romania, with Building A receiving 98 points in its certification category—ranking first in CEE, second in Europe, and third worldwide”, says Antoniu Panait of Vastint Romania. “The continued development of our projects, such as Timpuri Noi Square and Business Garden Bucharest, has been made possible by adapting our strategy to market demands and community needs”, stated Antoniu Panait.
Among the key threats identified by companies is persistent inflation.
“For 2025, one of the main challenges is the rising costs of construction, operations, and financing, combined with inflation, which continues to put pressure on both office development and tenants’ operational expenses. Another significant challenge is the permitting process for new developments, both in terms of predictability and timing, which could slow market growth”, says Adinel Tudor, CEO at EVO Properties. “On the other hand, repurposing old or unoccupied buildings and adapting them for new functionalities—such as residential, commercial, hospitality or wellness spaces—can create fresh growth opportunities for developers”, added Adinel Tudor.
Over the last ten years, Cluj-Napoca’s real estate market has seen a significant increase in property prices, becoming one of the most expensive in Romania. In 2014, the average price per square meter for a new apartment was approximately 985 euros, while in 2024 this price has more than tripled, reaching over 3,000 euros per square meter.
Reasons for price increase
The rise in prices in Cluj-Napoca is largely driven by the constant and high demand for housing, mainly due to the large student population and the city’s economic development. Students who settle in Cluj after completing their studies contribute to a steady demand for both rental and purchase properties.
Market impact
This price increase has led to several changes in the market, including a rise in investments in real estate infrastructure and an increase in the number of new construction projects. Additionally, high prices have caused a migration phenomenon towards the peripheral areas or the surrounding communes, where prices are more affordable.
Future outlook
Real estate experts predict a continued rise in prices in the coming years, due to persistent demand and supply constraints. Cluj-Napoca remains an attractive city for investors and those seeking housing in an area with economic and educational opportunities.
