Total investments of over 2 billion euros are currently undergoing or will be soon started in the five largest cities in Romania.
Thus, between the end of 2021 and 2024, in the five cities and in the adjacent regions commercial property projects totaling over 370,000 sqm will be completed.
Timisoara attracts the largest volume of investments, nearly 50% of the total
Timisoara attracts almost 1 billion euros in investments, approximately half of the total regional investments, in office, retail and logistics projects of over 190,000 square meters.
A 5-star Radisson Blu hotel and over 5,000 apartments will be delivered by 2024.
Iulius Group is working here on one of the most important office projects, UBC 0, with 30,000 sqm and AFI Europe added AFI Park Timisoara project to its portfolio last year.
At the same time, large investors in logistics such as CTP, WDP, VGP and Global Vision are present with ongoing projects of over 115,000 sqm.
Iasi: + 65,000 sqm offices and retail and +5,000 new apartments
Iasi accumulates investments in office and retail projects of over 65,000 sqm and over 5,000 apartments in various compounds that will be completed by 2024.
Iulius Group is working here on the office segment, respectively 60,000 sqm at Palas Campus, but also the Family Market retail parks in Miroslava and Bucium.
COS also has regional offices in Timisoara and Cluj-Napoca and recently attracted the Sarmis investment fund to shareholders, continuing the regional expansion.
The large real estate developers in logistics are still absent in Iasi, but two recent public investments, Iasi and Miroslava Industrial Parks have catered for the demand on this segment.
Brasov: a new development stage
Brasov is at the start of a new development stage, considering the completion of the new international airport, scheduled for 2022.
Brasov has approximately 2,500 apartments under construction, over 45,000 sqm of office and logistics space under development and 3 other hotels (Radisson, Ibis, Hilton).
One of the largest investors in the area is AFI Europe, which last year completed an EUR 148 million investment in the AFI Brasov mixed-use project.
Soon, the Israeli company will begin construction of the second office building in the project (10,000 sqm) in next period.
Cluj-Napoca: 3 new large hotels and +5,000 new apartments
Cluj-Napoca and the surrounding areas attract over 20,000 square meters of new logistics spaces, 3 new hotels and over 5,000 apartments in projects already started.
One of the major investors in Cluj is Immofinanz, which owns the Vivo! Shopping center here, with an area of over 60,000 sqm.
Constanta: investors bet on logistics & residential. No major office project yet
More than 7,000 apartments are currently under construction or will be launched in the next period, including an investment of EUR 40 million in the second phase of the Gran Via Marina.
The region has high potential for logistics, due to its location and available transport infrastructure.
Also, the city could attract in the near future at least a major investment on the office segment, given that no iconic building has been developed up to present.
New cities and trends on Romania real estate map
New investments in retail parks, a format favored by the social distancing period and by the sanitary restrictions.
Investors Square 7 & Mitiska have recently completed 2 such projects in Baia Mare and Medias, further preparing the expansion of the park in Slatina and a new investment in Giurgiu.
Logistics, one of the most active real estate segments in the last two years, attracts investments in new regions.
Element Industrial is developing 500,000 sqm in cities such as Braila (EUR 25 million), Ploiesti or Pitesti.
Real estate investments across the country have also drawn the regional expansion of other players in related sectors.
Alukönigstahl Romania signed in the first 9 months of 2021 contracts worth 17 million euros, with over 60% of the projects on the residential segment.
THETA Furniture & More is expected to complete a new furniture factory (4 million EUR investment) near Bucharest in Q1 2022.
EFMS (Romanian entrepreneurial facility management company) has expanded nationwide, reaching EUR 6.6 million turnover in 2020 and Reynaers Aluminum, a systems for facades and doors supplier, inaugurated 3 new showrooms in Cluj-Napoca, Iasi and Timisoara this year.