FORTIM Study: Belgium leads foreign investment in Romanian real estate as local buyers surge

According to the latest FORTIM study, Belgium and the Czech Republic are the top foreign investors in Romanian real estate for 2024, with local investors also making significant acquisitions. The report highlights that Romanian investors lead the market in terms of the number of commercial properties acquired, with a total of 12 properties purchased between January and August 2024. These transactions ranged from EUR 1.4 million to EUR 44.7 million, with the Iride office complex in Bucharest’s Pipera district being the largest purchase by Romanian investor Alin Niculae.

Romanian investors have predominantly targeted office buildings, hotels in smaller towns and mountain resorts, two small shopping centers, and street-level retail portfolios. Despite this high transaction volume, Romanian investors rank third overall in terms of total investment value, accumulating commercial properties worth EUR 139 million.

Foreign investors have shown strong interest in Romania’s real estate market, with Belgium leading the charge. Belgian investor WDP has made the largest impact, acquiring three properties worth a total of EUR 207 million within the first eight months of 2024. The Czech Republic follows, with investor CTP completing a notable transaction of EUR 168 million for a portfolio of industrial parks across five Romanian cities.

The total value of commercial property transactions in Romania for the first eight months of 2024 has reached EUR 661 million, surpassing the total for all of 2023 by 20 percent. This figure indicates a robust growth trend, with expectations that the final months of the year will see even higher investment levels.

Ștefan Oană, Head of Capital Markets at Fortim Trusted Advisors and a member of the BNP Paribas Real Estate Alliance, commented on the market dynamics: “Romania has already exceeded last year’s total commercial real estate transaction volume by 20 percent within just eight months. Recent months have seen a surge in office transactions, particularly for projects that have demonstrated resilience and performance through challenging periods. This trend is expected to continue, driven by a shortage of new product.”

As the Romanian real estate market continues to attract significant foreign investment while witnessing vigorous activity from local buyers, the outlook for the remainder of 2024 appears promising.