REAL ESTATE IN ROMANIA
The Romanian real estate market was fairly robust in 2023, in a considerably volatile geopolitical and economic context. It was a record year for the office sector in Bucharest, as 463,000 sq. m were transacted throughout 2023, corresponding to an increase of 19% compared with the previous benchmark set in 2019. The retail and industrial segments have also seen a series of landmark project deliveries, while the pipeline from 2024 onwards remains very consistent on both segments. However, an investment volume of only €488 million was recorded in 2023, reflecting a decrease of 62% vs 2022, in a wider European and global environment marked by notable declines of the investment activity.
The market liquidity remains relatively strong and an overall recovery is expected when it comes to real estate transactions, especially as the pressure on financing costs should lessen in H2 2024, when the interest rates and inflation are forecasted to record downward shifts.
Located in the heart of the city center, the Cushman & Wakefield Echinox office in Bucharest helps our clients to respond to the ever-increasing opportunities offered by the local real estate market – both within the city and throughout the CEE and SEE regions.
WHY ROMANIA?
Economic growth
- Romania recorded a 2.1% GDP growth in 2023, one of the highest in the EU (Eurostat);
- Robust growth forecasts for 2024 (3.4%) and 2025 (4.0%) respectively (National Commission for Strategy and Prognosis);
- Construction, IT&C and retail sectors were the main drivers of the GDP growth, contributing to more than 60% of the total surge (National Institute of Statistics);
- Bucharest was responsible for 25% of the total Romanian GDP in 2023, having a nominal GDP per capita of €47,000, a value almost 3 times higher than the national average (National Commission of Prognosis);
- In terms of purchasing power parity, Romania’s GDP per capita represented 80% of the EU average in 2023 (overtaking Hungary and level with Poland), a significant increase from a corresponding value of 39% in 2006, the year before the country’s joined the EU (Eurostat).
Employment
- Romania had an unemployment rate of 5.3% in April 2024, a level that has remained quite stable during the past 3 - 4 years, with no major surge of unemployment being recorded in that period;
- 5.1 million people were employed in Romania at the end of March 2024, an increase by almost 1 million compared with the 2009 – 2010 crisis (National Institute of Statistics);
- The industrial sector employs around 25% of that total, Romania having one of the highest % of the workforce involved in the industrial output in the EU (Eurostat);
- The IT&C sector has more than doubled in terms of employees since 2010 (National Institute of Statistics);
- 539,000 students enrolled in Romanian universities in 2022 (National Institute of Statistics);
- Foreign language proficiency: 97% of Romanian high school students study 2 or more foreign languages; 90% of the university students are proficient in English (ABSL, Eurostat).
IT specialists
- 145,000 IT specialists (excluding the Communications sector) in March 2023 (National Institute of Statistics);
- Average net salary ~€2,500, the highest figure for any sector, more than 2 times higher than the national average (National Institute of Statistics);
- Romanian software companies such as UiPath (the first Romanian unicorn) or Bitdefender (an internationally recognized antivirus provider) have made significant breakthroughs on the global level in terms of reputation and efficiency.
One of the fastest internet speed
- 12th fastest fixed internet broadband speed in the world and the 4th fastest in the EU (Speedtest Global Index May 2024).
Strategic base for IT companies
- Important IT companies such as Oracle, IBM, Microsoft, HP, Ericsson or Electronic Arts have been present on the local market for more than 10 years and are some of the largest office occupiers in country;
- Oracle has the single largest office presence in Romania and has its second largest office in Europe, while Electronic Arts has its largest office in Europe in Bucharest;
- Newcomers such as Amazon, DB Technology, Deloitte Technology or the service center of the London Stock Exchange Group further illustrate the importance and the overall potential of the Bucharest office market, a market which is expected to further expand by the end of the present decade.
What we offer
Cushman & Wakefield Echinox is a top real estate consultancy company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently.
With over 30 years of real estate market experience, the team of over 80 professionals and collaborators provides expertise across all aspects of the market and strategic advice to help investors, developers, property owners and occupiers respond to the region’s opportunities.
Working with both public and private sector clients across Romania and the SEE and CEE regions, we help unlock the benefits of selling, leasing or buying premium residential properties, offices, industrial and logistic units, retail and leisure assets and land plots, based on specialized valuation or research reports and supported by strong property management through Asset Services and project management through Project Development Services teams. We also facilitate access to investment and capital markets that can drive projects forward, helping transform our towns and cities into great places.
Our specialist teams offer particular areas of expertise in the following sectors:
- Commercial real estate (offices and retail)
- Food & Beverage
- Banking/ Financial Services
- Premium Residential (agency, valuation)
- Technology, IT & Communication
- Automotive
- Industrial & Logistics
- Land
- Hospitality
