Real Estate: Report: The land market enters a new phase of active caution, with moderate growth prospects for 2026

Romania’s land market closed 2025 with an estimated transaction volume broadly in line with 2024 levels, when deals totaled nearly 450 million euro. According to Colliers consultants, market dynamics were shaped by political uncertainty and fiscal adjustments in the first part of the year. However, sentiment improved visibly after the elections, with the final months of 2025 delivering some of the strongest transactional results seen in recent years.   Colliers consider land transactions intended for real estate developments in cities and their surrounding areas, increasingly including acquisitions by industrial developers as competition for land intensifies. Some of the plots purchased in 2025 for industrial projects had initially been earmarked for residential developments, highlighting the adaptation of investment strategies in a changing market. The real estate consultancy firm also notes that year-end activity was particularly buoyant, and the actual transaction volume may even have exceeded 2024 levels.   “2025 was a year of caution, but not of stagnation, marked by political uncertainty, fiscal adjustments and urban planning blockages, particularly in Bucharest. Buyers were more sensitive to risk and capital allocation, while sellers were more open to portfolio adjustments. The strong finish to the year confirmed robust demand for well-located land, and the competition between residential, retail and industrial developers points to a market that is adapting and growing, not contracting. In this context, investors with liquidity and a long-term perspective see the current moment as a strategic opportunity to invest in land”, explains Sinziana Oprea, Director of Land Agency at Colliers Romania.   In 2025, Bucharest accounted for around 60% of land transactions, down from 70–80% in previous years, against the backdrop of urban planning blockages in the capital and increased infrastructure investment nationwide. Investor interest has therefore expanded towards areas surrounding Bucharest and regional cities offering clear development prospects.   The residential sector remains the main driver of the market, generating approximately two-thirds of land transactions in Bucharest, primarily through residential schemes and mixed-use developments with a predominantly residential component, according to Colliers. At the same time, large developers are extending their focus to new areas, including outside the capital, in order to diversify investments and better manage costs. Plots located in areas with valid/recently reactivated zoning plans (PUZs) have attracted heightened investor interest, given the need for predictability in permitting.   Retail accounted for around 20% of land acquisitions in Bucharest and its surrounding areas, with competition for prime locations remaining intense. Unlike the residential sector, which is largely dominated by local investors, retail continues to be supported by international players, alongside a growing number of Romanian investors with solid capital bases.   The industrial sector - including urban logistics and, selectively, data centers - has become increasingly active in the land market, competing directly with residential uses for certain plots. Interest is strongest in areas with newly completed or developing infrastructure, although industrial investors remain more price-sensitive, a factor that influences negotiations, according to Collier’s consultants.   Outside the capital, land transactions were split between residential and retail uses in roughly equal proportions. Major regional centers still offer large-scale sites suitable for long-term projects, while developers previously active only in Bucharest are increasingly expanding their national footprint.   Land supply has continued to increase, Colliers consultants underline, with more properties being brought to market, including plots with permits or advanced documentation. While sellers are seeking to capitalize on still-stable price levels, buyers remain cautious and alert to the risk of overvaluation, particularly as infrastructure investments - especially around the A0 ring road - open up new areas of interest.   Overall prices have remained relatively stable, although plots with clear permitting advantages in major cities have recorded premiums of 20 - 30% compared to non-permitted land. Certain areas with newly completed infrastructure have even seen prices double over the past two to three years, while competition among developers for prime and limited retail plots has also driven price increases of up to 15 - 20%. For 2026, Colliers consultants anticipate a scenario of cautious optimism, supported by transactions initiated in 2025 and the continued rollout of infrastructure investments nationwide. While the actual completion of deals will depend on the evolution of the macroeconomic environment, 2026 is seen as a year of consolidation and preparation for a potential market acceleration in 2027 - 2028 - favorable for developers aiming to enter ahead of the next growth cycle.   “We are seeing growing interest in flexible transaction structures, such as joint ventures, delayed payments/phased acquisitions or various forms of partnership, which demonstrates the market’s ability to adapt to a more complex environment marked by caution and the need for risk control. These mechanisms allow investment activity to continue even in periods of restraint and are increasingly shaping how transactions are negotiated and closed”, concludes Sinziana Oprea, Director of Land Agency at Colliers Romania.