Survey: Major real estate investors and developers in Romania plan to continue expansion

Real estate investors and developers active in Romania argue that inflation, the increasing financing costs, the geopolitical situation, and the increasing construction costs are the main macroeconomic factors that may impact the Romanian real estate market, as these factors are expected to put pressure both on demand and on the rental levels.

However, despite all the above-mentioned issues, investors remain positive, and their expansion plans in Romania are mostly intact, according to the first edition of the Cushman & Wakefield Echinox “Real Estate Investors Sentiment Barometer”.

Cushman & Wakefield Echinox surveyed the top management of 45 local, regional and global investors with a combined real estate portfolio in Romania of more than EUR 10 billion, investors with a share of approximately 50% of the local real estate market. The survey was conducted between October 1 – November 1.

Inflation has almost unanimously (93%) been indicated as the main macroeconomic risk which may impact the Romanian real estate market, a market which will also be influenced by increasing financing costs (86% of responses) and by the geopolitical situation (76%).

Despite the challenges faced by the market, a clear majority of the responding investors (71%) are looking to expand their portfolios. The remaining 29% aim to maintain their current portfolios in the following three years. No respondent has indicated expectations of downsizing their activity.

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