Colliers: 2023 was "decent" year for Romania's real estate market

Romania's real estate market is preparing to end a "decent" year, with intense activity in the industrial sector but also with a decline in an economic dynamic and a significant decrease in investment market activity, according to real estate consultancy firm Colliers, which finds that its expectations were fulfilled.

Also, in the residential sector, sales volume in the first half of the year was in line with Colliers' anticipated trend of declining buying interest in the context of high interest rates, but in the second half of the year trading activity recovered amid rising home loans.

Colliers consultants anticipated an "economic slowdown in 2023 without recession," and this happened. Romania outperformed most European countries, but Colliers' expectations of 3-4% full-year GDP growth proved too optimistic, with a figure of just over 2% more realistic at this point.

Another theme highlighted in the "Top 10 predictions 2023" concerned the increasing relevance of the re-alignment of the global geopolitical order, and the theme of near-/friend-shoring (relocation of activity to countries closer to the end beneficiary or friendly countries) has indeed become more visible this year for Eastern European countries, including Romania.

Colliers also anticipated that politics would be in the spotlight this year. Politicians appeared to be focused on the busy 2024 electoral calendar rather than on necessary structural reforms, and the fiscal expansionary policies typical of a pre-election period were also visible.

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