Romania’s land market remains resilient amid economic and political uncertainty

Romania’s land market remained stable in 2024, with transaction volumes close to €450 million, mirroring 2023 levels despite ongoing economic and political uncertainty, according to Colliers’ annual report. Bucharest and its metropolitan area dominated the market, accounting for 80% of total transactions, while the residential sector led demand, making up 70% of deals.

Land plots with approved urban planning documentation retained their value, while properties lacking permits saw price declines of up to 30-40%. Local investors strengthened their position, maintaining dominance in the market. Looking ahead, Colliers experts suggest that post-election governmental stability and the completion of postponed transactions could provide a boost to investment activity in 2025.

Key Investment Areas and Sectors

The land market attracted diverse investors in residential, retail, hospitality, healthcare, energy, and agri-business sectors. Bucharest’s share of total transactions increased, with investor interest focused on Militari-Preciziei, Cotroceni-Progresului, and Băneasa-Sisești as prime development zones. The northern metropolitan areas of Pipera, Corbeanca, Buftea, and Snagov also saw significant demand, particularly for land with permits, enabling fast-track project implementation.

Retail-related land transactions accounted for 20% of market volume, driven by expansion strategies in underserved areas. The office market remained active, highlighted by One United’s acquisition of Romaero and other strategic land purchases for future developments. The residential segment saw strong growth, particularly in Timișoara, Brașov, Constanța, and coastal areas, reinforcing investor confidence in Romania’s urban expansion.

Market Trends and Pricing Developments

Local investors continued to dominate, particularly in the residential sector. Consolidation transactions—where developers acquire adjacent land parcels for expansion—also increased. Meanwhile, land supply expanded in 2024, as sellers optimized their portfolios. Some active investors divested less strategic assets in favor of prime locations.

Bucharest’s metropolitan area became increasingly attractive, particularly near A0 highway junctions, where demand has expanded beyond industrial use to residential and mixed-use developments.

One of the year’s most significant transactions was the €24 million acquisition of the 12-hectare Roca Preciziei / HILS platform. Other notable deals included the former Muntenia factory, purchased by Israeli developer Dimri, and several transactions from the CPI portfolio.

Colliers experts noted that land pricing trends varied by category. Properties with approved urban planning documentation retained or even increased in value. In contrast, unpermitted plots or land in less attractive areas saw price declines of up to 40%. Sellers have become more flexible with payment terms, introducing options like long-term installment plans tailored to market conditions.

Looking Ahead

Romania’s land market remains an attractive investment destination, reflecting strong long-term confidence despite economic and political uncertainties. The presidential elections and government stability will be crucial in shaping investment activity.

Several transactions previously postponed due to political and administrative challenges are expected to resume in the first half of 2025, injecting fresh momentum into the market. Landowners with strong financial positions are strategically waiting for the optimal selling moment, while local investors remain confident in the market’s medium- and long-term prospects.

While some investors may temporarily delay decisions until the political climate stabilizes, interest in strategic assets remains high. If no major disruptions occur, Colliers forecasts that Romania’s land market will maintain a steady pace throughout 2025, continuing its role as a key driver of real estate investment.