Commercial Real Estate - Romania | Statista Market Forecast

The value of the Commercial Real Estate market market in Romania is projected to reach US$304.10bn in 2024.
This indicates a significant growth potential for the country's real estate sector.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.82%, which will result in a substantial market volume of US$332.70bn by 2029.
When compared globally, it is important to note that the United States will continue to dominate the real estate market, with a projected value of US$25.3tn in 2024.
This highlights the immense scale and significance of the US real estate industry in the global context.
Romania's commercial real estate market is experiencing a surge in demand for office spaces, driven by the country's growing IT and outsourcing industry.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Romania has experienced significant growth and development in recent years. Customer preferences have shifted towards modern and well-equipped office spaces, retail spaces in prime locations, and high-quality industrial and logistics facilities. This trend is driven by the increasing demand for flexible and modern workspaces, the growth of e-commerce, and the expansion of multinational companies in the country. In terms of office spaces, customers are increasingly looking for modern and flexible work environments that can accommodate their evolving needs. This includes features such as open floor plans, collaborative spaces, and advanced technology infrastructure. The demand for such spaces is driven by the growing number of startups and technology companies in Romania, as well as the need for companies to attract and retain top talent in a competitive labor market. The retail sector in Romania has also witnessed significant growth, with a focus on prime locations and modern shopping centers. Customers are increasingly looking for convenient and attractive retail spaces that offer a wide range of products and services. This trend is driven by the growth of consumer spending and the increasing popularity of shopping malls as social and entertainment destinations. The industrial and logistics sector in Romania has experienced a boom in recent years, driven by the growth of e-commerce and the expansion of multinational companies. Customers are looking for high-quality facilities that can support their logistics operations and meet the increasing demand for online shopping. This includes features such as large warehouse spaces, advanced technology systems, and efficient transportation infrastructure. In addition to customer preferences, there are also local special circumstances that contribute to the development of the Commercial Real Estate market in Romania. The country's strategic location in Eastern Europe, its membership in the European Union, and its favorable business environment make it an attractive destination for foreign investors. This has led to an influx of capital and increased competition in the market. Furthermore, Romania's strong economic growth, stable political environment, and skilled workforce have also contributed to the development of the Commercial Real Estate market. The country's GDP growth, low unemployment rate, and favorable investment climate have attracted both domestic and international companies, driving the demand for commercial real estate. Underlying macroeconomic factors, such as low interest rates and favorable financing conditions, have also played a role in the development of the Commercial Real Estate market in Romania. These factors have made it easier for investors to finance their projects and have contributed to the overall growth and stability of the market. In conclusion, the Commercial Real Estate market in Romania has experienced significant growth and development in recent years. Customer preferences for modern and well-equipped office spaces, prime retail locations, and high-quality industrial and logistics facilities have driven this trend. Local special circumstances, such as Romania's strategic location and favorable business environment, as well as underlying macroeconomic factors, have also contributed to the market's development.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.