• Romanian real estate remains a core pillar of M&A, supported by resilient fundamentals despite a cautious European backdrop
• Investment activity is increasingly concentrated in high‑quality commercial assets and scalable platforms
• Looking into 2026, opportunities persist, but success will depend on selectivity, execution discipline and strategic differentiation
Real estate continues to act as a cornerstone of Romanian M&A activity, underpinned by resilient fundamentals and sustained investor interest. The 2025 data confirm that, despite a more cautious European investment climate, Romania remains a interesting market for both domestic and international investors. Looking ahead to 2026, the sector’s strategic relevance is set to persist, even in an increasingly selective and execution driven environment.
Bogdan Mitroi, Manager, Transactions and Corporate Finance, EY-Parthenon: ”The 2025 data confirm that Romania continues to attract both domestic and international capital, with real estate, hospitality and construction leading M&A activity for the third consecutive year. Stable yields, limited new office supply and sustained investor appetite for income generating assets underpin the sector’s strategic relevance.
While residential assets drive overall market size, commercial real estate anchors transaction value, with logistics, retail parks and hospitality emerging as the most attractive subsectors. Investors are prioritizing dominant assets, inflation‑linked cash flows and opportunities in secondary cities, where yield differentials remain compelling.
With commercial real estate growth moderating and new retail supply coming to market, investors face higher execution and structuring complexity. Pricing discipline, ESG alignment, asset quality and access to financing will be decisive, particularly for platform acquisitions, mixed use developments and portfolio repositioning.”
What the 2025 data tells us
In 2025, Romania’s real estate market was estimated at EUR 1.16 trillion, reflecting a 2.2% year on year increase, driven primarily by residential price evolution. Residential properties accounted for approximately 75% of total market value, with commercial real estate (office buildings, retail spaces, warehouses, and industrial properties) representing the remaining 25%. While residential growth remained the key volume driver, commercial assets continued to anchor investment activity and transaction value.
Romania closed the year with approximately 8 million sqm of industrial stock, 4.7 million sqm of modern retail space, and 3.4 million sqm of modern office space in Bucharest. Notably, no new office deliveries were completed in 2025, a first for the capital, reinforcing rental stability and limiting downward pressure on values.
Prime retail rents in Bucharest stabilized at EUR 80–85/sqm/month, reflecting strong tenant demand for dominant shopping centers. Industrial rents softened slightly to EUR 3.8–4.8/sqm/month, driven by increased supply and more cautious occupier sentiment. Across sectors, yields remained broadly stable, signaling continued investor confidence in income generating Romanian assets.
Real estate at the core of Romanian M&A
Real estate, hospitality and construction (REH&C) once again ranked as the most active sector by deal count in Romania, leading M&A activity for the third consecutive year. In 2025, the sector recorded 56 transactions with limited transparency, as approximately 70% of Romanian M&A transactions lacked disclosed value.
As a result, publicly disclosed aggregate deal value for REH&C cannot be robustly confirmed, and year‑on‑year value growth for the sector should be interpreted with caution.
Capital remained diversified, with the United Kingdom ranking as the leading inbound investor country, followed by Romania and the Czech Republic. While local capital accounted for 27% of total investment, international investors continued to dominate larger transactions, intensifying competition for high quality assets and portfolios. Important external players, such as M Core (retail sector), CPI Property Group (logistics sector) or Granit (Office sector) continued to show interest in Romanian real estate market, as well as local investors, such as Pavăl Holding (Office sector).
By subsector, logistics, retail parks and hospitality stood out as the most attractive segments. Investors showed a clear preference for scalable platforms, dominant regional assets and properties with stable, inflation linked cash flows. Activity in secondary cities gained momentum, supported by favorable yield differentials and lower competitive intensity compared to Bucharest.
Outlook for 2026
Looking ahead, the outlook for 2026 remains constructive but increasingly selective.
The commercial real estate segment is forecast to grow at approximately 1.2% per annum for the next 3-5 years, a more moderate pace than residential, but one that reflects a maturing and more disciplined market.
Industrial and logistics assets are expected to remain a key focus, supported by nearshoring trends, manufacturing expansion and EU funded infrastructure investment.
Retail is entering a new development cycle, with approximately 700,000 sqm of modern retail space expected to be delivered over the next five years, largely outside Bucharest. These dynamics create opportunities, but also heighten execution risk, particularly around location selection, tenant mix and capital structuring.
For investors and corporates alike, success will depend on pricing discipline, asset quality differentiation, ESG alignment and access to financing. Deal timelines are likely to remain extended, and transactions increasingly complex, particularly for platform acquisitions, mixed use developments and portfolio restructurings.
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About EY Romania
EY is one of the world's leading professional services firms with 406,209 employees in more than 700 offices across 150 countries, and revenues of approx. US$53.2b in the financial year that ended on 30 June 2025. Our network is the most integrated worldwide, and its resources help us provide our clients with services allowing them to take advantage of opportunities anywhere in the world.
With a presence in Romania ever since 1992, EY provides, through its more than 1000 employees in Romania and the Republic of Moldova, integrated services in assurance, tax, strategy and transactions, and consulting to clients ranging from multinationals to local companies.
Our offices are based in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau. In 2014, EY Romania joined the only global competition dedicated to entrepreneurship, EY Entrepreneur Of The Year. The winner of the national award represents Romania at the world final taking place every year in June, at Monte Carlo. The title of World Entrepreneur Of The Year is awarded in the world final. For more information, please visit: www.ey.com
About the study
This analysis is based on EY Romania’s annual review of mergers and acquisitions and real estate market activity and reflects data and insights available as of the end of the year. The study draws on a combination of publicly available information, proprietary EY transaction databases, market intelligence, and insights from EY professionals, as well as discussions with market participants and industry experts. Transaction data include announced M&A deals involving Romanian assets or companies, where sufficient information was available. Given the limited disclosure of deal values in the Romanian market, aggregate figures should be interpreted with caution. The analysis is intended to provide a high-level view of market trends rather than a comprehensive assessment of all transactions.
