Romanian investors were the most significant source of capital on the local real estate market, accounting for approximately 30 percent of the total transaction volume in 2025and accumulating nearly 1.8 billion euro in investments over the past decade, surpassing the level recorded by South African or Austrian capital over the same period, according to the annual report published by Colliers. At the same time, the total transaction volume in 2025 reached approximately 525 million euro, nearly 30 percent below the 2024 level, when the market recorded 750 million euro. Colliers’ consultants explain that this decline does not indicate a lack of investor interest but rather reflects the postponement of several major transactions and, to a lesser extent, last year’s domestic political uncertainties.
At regional level, 2025 marked the transition from a period of waiting to one of effective deal execution. After two years in which the gap between buyers’ and sellers’ expectations put pressure on the market, investors began closing transactions again at a more sustained pace, based on more realistic pricing benchmarks.
“One of the most important trends in Romania’s investment market is the increasingly strong role of domestic capital, which has become a factor of stability. Whereas in the past foreign capital was dominant, in recent years, with very few exceptions, locally generated capital has consistently ranked among the top two positions, a clear sign of the local economy’s maturation. Over the past decade, Romanian investors have placed around €1.8 billion, reaching a share of approximately 20 percent of the total, thus surpassing South African investments by roughly half a billion euros and those from the United Kingdom, the Czech Republic, or Austria by more than one billion euros. This structural shift creates a solid foundation for further positive developments and is a clear signal that the local market is gaining confidence in its own strength”, explains Ionuț Mandanac, Associate Director | Capital Markets at Colliers.
Retail and offices kept the market active in a lower-volume year
In 2025 the market was primarily driven by the retail and office segments. Retail was the most active sector, generating approximately 38 percent of total volume. The year’s largest deal was the sale of a retail park portfolio of approximately 32,000 square metres to the British fund M Core for around 57 million euro. Together with other acquisitions in Focșani and Suceava, this transaction consolidated M Core’s position as the most active investor of the year, accounting for nearly 29 percent of total market volume.
The office segment generated approximately 31 percent of total transaction volume and brought new investors to the Romanian market. The most significant deal was the acquisition of the first phase of the Equilibrium project in Bucharest by Hungarian fund Gránit Asset Management for approximately 52 million euro. In central Bucharest, Victoria Center was acquired by Solida Capital, a Middle Eastern investor active in other European markets. In both cases, the buyers entered the local market through these transactions, suggesting that Romania is becoming increasingly attractive to new players. According to Colliers’ consultants, such deals send a positive signal for long-term liquidity improvement.
In the hotel sector, the sale of Hilton Garden Inn Bucharest Airport, estimated at approximately 40 million euro, represents the second-largest hotel transaction in the history of the local market. According to Colliers, the relevance of this transaction lies not only in its value, but also in the fact that it concerns a newly developed hotel built from scratch, which can be considered a mature investment product. Such transactions, they add, may contribute to the development of a more attractive hotel segment for institutional investors and increase specialised capital interest in this asset class.
Yields stabilised and financing returned to the market
From the perspective of prime yields, the market remained stable in 2025. Colliers maintains prime yields at 7.25 percentfor dominant shopping centres, 7.50 percent for prime office buildings and 7.75 percent for top-tier industrial assets. Unlike other regional markets, where yields evolved differently – with slight compression in the Czech Republic and outward adjustments in Poland – prime yields in Bucharest remained stable, indicating a balance between buyers’ and sellers’ expectations.
On the financing side, banks remain open and comfortable with current pricing levels, continuing to support performing assets. In 2025, the largest refinancing ever completed on the local market was also concluded: more than 500 million euro granted for the AFI Cotroceni, AFI Brașov, and AFI Ploiești projects. For solid projects, financing margins currently range between 200 and 250 basis points, slightly lower than in previous years, indicating a gradual improvement in lending conditions.
“Tax legislation is changing at an accelerated pace, and the rules are becoming increasingly complex, which is why investors are analysing transaction structures and their medium- and long-term tax impact much more carefully. Elements such as the deductibility of financing costs, the rules governing the recovery of tax losses, or the impact of the minimum turnover tax directly influence how investments are structured and how returns are calculated. Under these conditions, predictability and rigorous tax planning become decisive factors in maintaining the attractiveness of the local market”, explains Alex Milcev, Partner, Tax & Law Services Leader EY România și Moldova.
Central and Eastern Europe regains investor appeal
At the regional level, after two years marked by uncertainty, banks have become more open to financing real estate assets, particularly high-quality ones supported by stable income streams. Toward the end of the year, the sources of financing used for transactions became more diversified: in addition to traditional bank loans, investors interested in allocating capital to debt instruments secured by real estate assets have reappeared.This renewed confidence was reflected in regional volumes.
The six major Central and Eastern European markets – Bulgaria, the Czech Republic, Poland, Romania, Slovakia and Hungary – attracted 11.6 billion euro in investments, 31 percent above the previous year’s level. Volumes are once again approaching pre-pandemic levels, when annual transactions ranged between 13 billion and 14 billion euro, according to the Colliers report “CEE Investment Scene Q4 2025”. Growth was primarily driven by Poland and the Czech Republic, both registering transaction volumes exceeding 4 billion euro. Investors from the region generated approximately 64 percent of total transaction volume while capital from Western Europe accounted for 17 percent, and that from the United States for 11 percent.
In a global context marked by volatility and geopolitical tensions, Central and Eastern Europe is once again being perceived as an attractive investment destination, offering a balance between competitive yields and a level of risk considered manageable.
For 2026, Colliers’ consultants anticipate moderate growth in regional investment activity, supported by stabilised yields and the gradual return of liquidity. In Romania, the year begins with a new institutional office transaction completed (Equilibrium 2) and a solid portfolio. with several major deals at various stages of negotiation. Under these conditions, investment volume could exceed 750 million euro and, in an optimal scenario, even surpass the 1 billion euro threshold. However, performance will depend on domestic political stability and the international context, factors that directly influence investor confidence and transaction timing.
A positive signal also comes from the macroeconomic side: yields on Romanian sovereign bonds have fallen to their lowest level in nearly two years. The spread against German bonds has lowered, indicating an improved perception of Romania’s risk profile and potentially encouraging investment. However, experience from 2025 shows that transactions can still be postponed even when conditions are favorable, which is why forecasts for 2026 should be viewed with realism and caution. As transactions close and establish clear pricing benchmarks, the market may enter a self-sustaining recovery cycle, in which each completed deal contributes to greater visibility and helps narrow the gap between buyer and seller expectations.
“For 2026, we anticipate significantly better results in the real estate investment market than in the past two years. Liquidity is beginning to return to the region, and Romania benefits from solid fundamentals across all established sectors. Demand for logistics spaces remains strong, while the retail and office segments are showing positive dynamics, with multiple transactions at advanced stages of negotiation. If the domestic political environment remains stable, the government continues its reform agenda, and no major external shocks occur, the investment market could enter a phase of sustainable recovery. Investor appetite is present, and transactions are completed when there is convergence between sellers’ expectations and buyers’ investment parameters. The market operates optimally when prices reflect a balance between the assets’ fundamentals and the cost of capital”, concludes Robert Miklo, Partner | Head of Capital Markets at Colliers.