Foreign Capital Strengthens Its Grip on Romanian Real Estate

Romania’s property and construction industries have emerged as some of the country’s strongest magnets for foreign capital. According to data analysed by Cushman & Wakefield Echinox from the National Bank of Romania, the real estate and construction segment now accounts for roughly 17.5 percent of total foreign direct investment (FDI), ranking just behind industry as the leading destination for overseas funds.

Over the past decade, the value of foreign investments in the sector has grown sharply, reflecting the continued expansion of Romania’s commercial property market and the confidence of long-term investors. The total FDI stock reached around €118 billion by the end of 2023, and while global headwinds slowed new inflows in 2024, the country’s property market continues to attract sustained interest.

Foreign ownership plays a decisive role in shaping the modern real estate landscape. More than two-thirds of the country’s office, retail, and logistics stock is estimated to be held by non-resident investors, with the largest concentrations found in Bucharest and the country’s regional business hubs. Analysts note that investors are drawn by competitive yields and the relative stability of Romania’s property fundamentals compared with other Central and Eastern European markets.

Within the broader economy, four sectors—industry, construction and real estate, trade, and financial services—collectively account for the majority of foreign capital. Yet the property market has outperformed in terms of growth rate, adding billions in new investment and overtaking traditional sectors such as manufacturing and retail in year-on-year expansion.

Industry specialists describe Romania’s real estate sector as resilient and structurally attractive, even against a backdrop of political uncertainty and slower GDP growth. They highlight a mix of factors driving inflows: steady demand for logistics space, ongoing urban redevelopment, and a maturing investment ecosystem that includes both institutional and private capital.

The latest figures also suggest that Romania is playing a larger role in the regional investment map. With prime yields still 1–2 percentage points higher than in nearby EU markets, analysts say the country offers a clear risk-return advantage for investors seeking diversification within Central and Eastern Europe.