The first quarter of 2025 ended with real estate investments totaling EUR 175 million in Romania, slightly down by 8% compared to the same period last year but with strong momentum last year’s quarter recording 2.5 times the volume seen in Q4 2024 . According to the Colliers report ”CEE Investment Scene Q1 2025”, total investment volumes more than doubled, supported by a strong rebound in markets like the Czech Republic, Slovakia, and Bulgaria. Colliers experts highlight that there is a significant pipeline of transactions currently in Romania that could push the full-year volume slightly above 2024 levels. “While most CEE-6 countries, including the Czech Republic (+297%), Slovakia (+344%) and Bulgaria (+273%), saw a significant recovery in investments, Romania recorded similar YoY levels but a strong growth on a quarter-to-quarter basis. This comes at a time when investors are returning to CEE markets, attracted by competitive costs, economic potential, and strong prospects in industrial-logistics, hotel, and office sectors. In Romania, however, fiscal and political uncertainties, high financing costs, and a mismatch between sellers’ and buyers’ price expectations have an effect on market dynamics”, explains Robert Miklo, Head of Capital Markets at Colliers. Romania remains a point of interest for investors due to its strategic regional position, available workforce, and development potential, particularly in the industrial sector. According to Colliers, the local market could return to an upward trend in the second half of the year, provided that several major ongoing transactions are finalized and price expectations align with market demand and supply. Romania continues to be one of the largest economies in the region, contributing over 18% to the combined GDP of the six countries analyzed. Under these conditions, if the large transactions currently underway are completed, the total investment volume could exceed EUR 800 million for the entire year. Among the most notable deals in Q1 were the market-entry and flagship acquisition of Victoria Center by Solida Capital and the sale of a retail property portfolio by MAS REI to UK-based fund M Core, and the sale of Shopping City Suceava by Argo Capital, with the same buyer. “Both retail transactions, similar in size, generated over EUR 100 million in turnover, meaning the retail sector accounted for roughly two-thirds of Q1 investment volume, which reinforces the strong comeback of the this segment starting with 2021”, adds Simina Niculiță, Partner and Head of Retail Agency at Colliers. “The slight drop in year-on-year investment activity in Q1 in Romania does not reflect a lack of interest from investors but rather a timing and supply and demand reality. Attractive assets are still available, but sellers’ value perception do not easily align with buyers’ return evaluations especially in a strictfinancing context. Nevertheless, Q2 already started strong with landmark office transactions and the pipeline of ongoing deals is strong therefore we expect a robust performance for the investment market by end of the year”, notes Robert Miklo. Colliers experts remain optimistic about the year’s outlook in Romania’s real estate investment market. Foreign capital inflows into segments such as logistics, hospitality, and mixed-use could drive the performance, but this may depend on realistic pricing adjustments and a sustainable decrease in financing costs. Moreover, political clarity and predictability, now that the presidential elections have concluded, could further strengthen investor confidence. “Romania has significant strengths: a competitive workforce, strategic geographic position, an attractive stock of assets, and consistent demand in certain sectors. However, to resume a steady pace of transactions, we need both a predictable fiscal and political environment and favorable external conditions”, adds Simina Niculiță, Partner | Head of Retail Agency at Colliers.