The “Sector-Specific Trends, Part 1” panel held at CEDER 2025 opened with moderator Silviu Stratulat, Managing Partner of Stratulat Albulescu Attorney at Law, describing the contradictory status of Romania’s real estate market. While the country, recognised as a “strategic logistics hub” with “a maturing retail market”, continues to attract investment and international interest, the real estate sector is currently navigating increasingly challenging and complex times. A significant area of concern lies within the construction process. Claudiu Bisnel, Managing Partner for Brisk Group, highlighted fundamental issues impacting project delivery and quality, like “inflation that is seen in the volatility of material prices”, as well as “a shortage of labour”, compounded by significant delays in obtaining necessary approvals. Bisnel pointed out: “Bureaucracy in the permitting process is contributing to [a] three to six-month delay in the actual delivery of the project”. Ioana Niculeasa, Head of Real Estate at NNDKP, identified delays and inconsistent application of regulations as key issues, particularly with urban planning documentation. She noted: “the zonal urban plan, […] [is] one of the matters that are very much delayed, due to the fact that the local authorities at [the] level of whatever administrative territorial units interpret in their own way the application of the urbanist regulations”. While a recent government emergency ordinance aims to simplify procedures and accelerate investments, its success depends on correct implementation by the relevant authorities. The structure of the Romanian real estate market also presents challenges for potential new investors. Gijs Klomp, Business Development Manager at WDP Romania, explained that across various sectors, including retail, office, and industrial, there is a prevalence of long-term holders. This makes it difficult for investors seeking to build a substantial portfolio through acquisition. Klomp articulated this difficulty: “It's very difficult for me to go to my investment committee and come up with a credible business case of rolling out in Romania. […] It's not a constant flow of product that I could acquire to build up a meaningful platform, […] which is, I think, a disadvantage of the current market, broadly speaking”. Broader economic factors contribute to the prevailing uncertainty, such as the exchange rate volatility, which, according to Geanina Ungureanu, Head of Retail at CPI Property Group, creates a cautious market environment: “Everybody, I feel, is in a standby mode right now, towards investments and so on”. The imminent increase in VAT is also a widely anticipated challenge, a fact confirmed by all the panellists. Robert Ioniță, Group General Counsel for NEPI Rockcastle, confirmed the expected impact, stating, “There is going to be an impact. The question is how much […]: how much is going to be the increase and how is going to be the impact”. Gijs Klomp noted that VAT is an “easy to collect” tax increase, but questioned whether the market, which he sees as “soft in reality”, will allow the cost to be passed on to clients. Mihai Diaconescu, Director at Logicor Romania, feels the VAT increase “will accelerate a little bit […] the downward trends that that we're on”. Geanina Ungureanu pointed out the direct impact on ongoing construction and refurbishment projects, requiring recalculation of budgets. As outlined by several members of the panel, the general economic climate in Romania leads stakeholders to currently adopt a “wait and see” approach.