Romanian real estate investors are showing renewed optimism about the market’s prospects for 2025, according to the latest Real Estate Investors Sentiment Barometer by Cushman & Wakefield Echinox. Among surveyed investors and developers managing Romanian real estate portfolios worth over €15 billion, 64% expect portfolio values to rise in the next 12 months, 30% foresee stability, and only 6% anticipate a decline. Key Insights • Geographic Focus: Bucharest remains the dominant investment destination, favored by 80% of respondents, up from 66% in 2023. Secondary cities are gaining traction, with over 65% of investors targeting these markets, and interest in tertiary cities (populations under 200,000) rising to 31%. • Sector Trends: Optimism surrounds the industrial, logistics, and retail segments, with investors predicting office demand stabilization and selective portfolio expansion. Retail rents are expected to increase, supported by recovering demand and robust sales growth, while industrial and logistics assets are forecasted to see stable performance. • Inflation and Costs: Inflation remains the top concern, along with construction and financing costs, which could pressure rents across all segments. A majority of investors plan to grow their portfolios over the next three years, with banks cited as the primary financing source by 49% of respondents. Shareholder loans are also significant, accounting for 19%. Only 9% of respondents anticipate downsizing their activities. Sustainability has emerged as a priority, with investors increasingly focused on certifying buildings and adhering to EU ESG Taxonomy requirements. The integration of sustainability practices is seen as crucial for long-term success. While inflation and interest rates are key challenges, improvements in macroeconomic stability, taxation, and labor market conditions are bolstering confidence. Operating cost management and navigating complex legislative regulations are highlighted as significant hurdles for portfolio management. “Investors are cautiously optimistic, anticipating consolidation in key sectors while maintaining a focus on sustainability and innovation,” said Vlad Saftoiu, Head of Research at Cushman & Wakefield Echinox. As the Romanian real estate market continues to evolve, investors are poised to capitalize on growth opportunities while navigating economic and regulatory challenges. The positive outlook signals a promising year ahead for one of Eastern Europe’s most dynamic property markets. Source: Cushman & Wakefield Echinox Photo: Vlad Saftoiu, Head of Research Cushman & Wakefield Echinox