Romania is fast emerging as a notable contender in the Central and Eastern European (CEE) real estate landscape, drawing investor attention particularly in the industrial and office sectors. According to Colliers’ latest report, “How Government Incentives Shape Industrial & Office Real Estate in CEE”, the country stands out for offering some of the most attractive government support mechanisms in the EU. These incentives can cover up to 70% of eligible project costs—significantly higher than the 50–60% support typically offered by other CEE countries such as Poland or Hungary.
This level of state aid can be a game changer, particularly in today’s highly competitive and efficiency-driven investment climate. With strategic geographic positioning, cost-effective labor, and a developing infrastructure base, Romania has the foundational ingredients to support robust industrial and office development.
However, as Colliers experts point out, government support alone is not a silver bullet. Internal challenges such as political instability, bureaucratic inefficiencies, and fiscal uncertainty continue to weigh heavily on investor confidence. While Romania may offer the highest incentive levels on paper, it continues to lag behind its regional peers in attracting large-scale manufacturing commitments.
Strong Aid, But Limited Results—For Now
According to data from fDi Markets, Romania attracted €1.7 billion in announced manufacturing investments in 2024, with the potential to generate over 8,900 new jobs. By contrast, Poland, Hungary, and the Czech Republic each secured between €2.5 billion and €2.9 billion in similar investments—despite offering less generous financial support.
As Victor Cosconel, Partner and Head of Leasing at Colliers, explains, “State aid is only one piece of the puzzle when it comes to investment decisions. While Romania is generous in this respect, it cannot fully offset other concerns. Global and domestic uncertainties – together with the potential for significant fiscal changes in the medium term – outweigh the additional support Romania offers compared to other CEE countries.”
Victor Cosconel, Partner and Head of Leasing at Colliers (Credit: Colliers)
The Colliers report further emphasizes that the broader CEE region—particularly Romania, Poland, Hungary, the Czech Republic, Slovakia, and Bulgaria—accounts for nearly 90% of all modern industrial stock across the CEE-13 countries. Yet, Romania’s logistics space per capita remains at a modest 0.7 square meters, compared to up to 3 square meters in Western Europe, signaling vast room for expansion.
Office Sector and Local Advantages
While most office projects are not directly eligible for state aid, regional hubs like Cluj-Napoca, Iași, and Timișoara provide alternative forms of support. These range from local tax incentives to a favorable business ecosystem and public policy backing. Developers who understand how to leverage these indirect advantages can secure a meaningful competitive edge.
Romania also benefits from a relatively low-cost, well-educated workforce, which continues to be a magnet for outsourcing and IT services. Despite the current shortfall in modern office space per capita, this structural gap points toward long-term growth opportunities—especially as ESG standards and the European Green Deal begin to reshape investor priorities toward sustainability, smart technologies, and green buildings.
Investor Trends in Q1 2025
In the first quarter of 2025 alone, commercial real estate transactions in Romania reached a total volume of €155.8 million, according to data from Fortim Trusted Advisors (part of the BNP Paribas Real Estate Alliance). Notably, UK-based investors accounted for the largest share (68%), followed by capital from Lebanon and Romania. This activity underscores Romania’s growing appeal to international investors despite its ongoing internal hurdles.
