Report: Romania’s land market remains stable in 2024, with strong investor confidence despite uncertainty
<p>Despite a climate of economic and political uncertainty, Romania's land market remained stable in 2024, with transaction volumes reaching nearly EUR 450 million, a figure close to 2023's total. Colliers' annual report reveals that Bucharest and its metropolitan area continued to dominate, accounting for 80% of total transactions, while residential projects made up 70% of these deals.</p>

<p>Land plots with approved urban planning documentation preserved their value, Colliers consultants highlighted, whereas properties requiring such approvals saw declines, in some cases by as much as 30-40%.</p>

<p>Local investors strengthened their dominant position, and demand for land in strategic locations continued to rise, the same source said.</p>

<p>Sînziana Oprea, Director of Land Agency at Colliers Romania, commented: "The land market attracted investors from a diverse range of sectors in 2024, such as residential, retail, hospitality, healthcare, energy, or agri-business. Compared to previous years, the capital's share of total transactions has increased. Investor interest has focused on strategic land platforms in key areas such as Militari-Preciziei, Cotroceni-Progresului, and Băneasa-Sisești, which have emerged as prime development hotspots. Additionally, Bucharest's northern metropolitan areas - Pipera, Corbeanca, Buftea, and Snagov - have seen significant activity, particularly for land with building permits, allowing for the fast implementation of projects."</p>

<p>Land transactions for retail projects accounted for about 20% of total market volume, including the closure of long-term deals, Colliers consultants noted, as retailers pursued expansion strategies in underserved regions.&nbsp;</p>

<p>The office market remained dynamic, supported by a few transactions, such as One United's acquisition of Romaero, along with several strategic land purchases for potential future developments.&nbsp;</p>

<p>The residential segment experienced significant growth, now representing approximately 70% of total land acquisitions. Investor interest was particularly strong in key cities such as Timișoara, Brașov, and Constanța, as well as the broader coastal region.</p>

<p>Additionally, local developers, particularly those in the residential market, continued to dominate, while consolidation transactions increased as developers sought to expand their portfolios with adjacent plots.</p>

<p>Land supply expanded in 2024 as sellers looked to optimize portfolios, with some active investors divesting from less strategic properties. Bucharest's metropolitan area, especially near A0 highway junctions, became increasingly attractive for residential and mixed-use developments, signaling the market's adaptability to emerging opportunities.</p>

<p>Looking ahead to 2025, the land market's performance will depend on post-election government stability, Colliers said. Several transactions delayed by political and administrative factors may be finalized in the first half of the year, potentially giving a new boost to the market.&nbsp;</p>

<p>Although some investments may temporarily pause until the political landscape stabilizes, local investors remain confident in the market's medium- and long-term outlook. As long as there are no major surprises, the land market is expected to maintain steady growth throughout 2025.</p>

<p><i>irina.marica@romania-insider.com</i></p>

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