Romania’s Land Market Holds Steady in 2024 Amid Uncertainty, Poised for Renewed Activity in 2025

Romania’s land market remained stable in 2024, with transaction volumes hovering around EUR 450 million, consistent with 2023 levels, despite a climate of economic and political uncertainty, according to the annual report published by Colliers.

Bucharest and Its Metropolitan Area Dominate the Market

The Bucharest metropolitan area continued to serve as the epicenter for land deals, accounting for 80% of all transactions, with residential projects representing 70% of this total.

Land plots with approved urban planning documentation retained their value, according to Colliers consultants. In contrast, properties requiring such approvals experienced price declines in some cases of 30% to 40%.

Local Investors Maintain Market Leadership

Local investors consolidated their dominant position, with growing interest in strategically located plots. The outlook for 2025 hinges on post-election government stability, while the closing of previously delayed transactions could drive new investment activity.

Retail and Office Sectors Show Signs of Expansion

Retail-focused land transactions accounted for 20% of the market, including the completion of several long-standing deals. Retailers pursued a strategy of expansion and consolidation, targeting under-served regions.

The office sector also remained active, driven by significant transactions such as One United’s acquisition of Romaero, alongside several strategic land acquisitions for potential future developments.

Residential Segment Continues to Accelerate

The residential sector saw substantial growth, representing nearly 70% of total land acquisitions. Strong investor interest was recorded in Timișoara, Brașov, Constanța, and the extended Black Sea coastal area.

Local investors remained dominant in the residential land segment, where most developers are backed by Romanian capital. A growing trend in land consolidation transactions also emerged, as developers acquired plots adjacent to existing projects to facilitate future expansions.

Land Supply Expands Amid Portfolio Optimization

The supply of land increased in 2024, driven by sellers looking to optimize their real estate portfolios. Even some active investors divested non-strategic plots, shifting focus toward targeted segments.

The Bucharest metropolitan area has become increasingly attractive, particularly around A0 highway interchanges. Interest extends beyond industrial development to include residential and mixed-use projects, signaling a market that is quickly adapting to emerging opportunities.

Outlook for 2025: Political Stability as Key Driver

Romania continues to attract investors due to its economic potential, reflecting strong market confidence. According to the Colliers report, the land market in 2025 will depend heavily on the outcome of the presidential elections and the resulting government stability.

Several transactions previously delayed for political and administrative reasons could be finalized in early 2025, providing renewed momentum for the market. Landowners with solid financial backing are choosing to wait for the optimal moment to sell, while investors — particularly local ones — remain confident in the market’s medium- and long-term outlook.

Although some investments may be temporarily paused pending political clarity, interest in strategic assets and market opportunities remains high. Unless unexpected major changes occur, the land market is expected to operate at a normal pace throughout 2025. (Photo: Freepik)