Romanian Real Estate News 26/06/24

Romanian real estate news


The volume of construction works in Romania grew by 16.2% in April on an annual basis, after unexpectedly contracting by 7.0% in Q1 2024, according to data published by the National Institute of Statistics. April’s recovery was driven by the non-residential buildings (+18.5%) and civil engineering works (+21.1%). In January-April 2024 period, the volume of work on real estate projects still lags by 23.6% behind the volume in the same period last year.


TASE-listed real estate investor-developer HAGAG Development Europe announced the exclusive involvement of leading real estate consulting agency CBRE Romania in the leasing strategy of H Știrbei Palace – a class A, iconic, historical monument located in the heart of Bucharest on the emblematic Calea Victoriei. With an impressive history of about 200 years and a unique architectural presence, the former protocol royal residence of Prince Barbu Știrbei is currently undergoing comprehensive restoration, consolidation, renovation works, and will be facing the world again by mid-2025. Once completed, H Știrbei Palace aims to become a flagship shopping gallery for luxury brands in the Southeast European region.

H Știrbei Palace, Calea Victoriei, Bucharest (Credit: HAGAG)


-Romanian retail investors prioritize the real estate market, regardless of their investment capacity: those with no prior experience in this sector anticipate investing at least €1,500 while experienced investors aim to acquire a property within the next 12 months, according to the findings of a study conducted by MKOR for Build21 real estate company.

-In 2023, the number of foreign direct investment (FDI) projects in Romania fell 13%. However, investor optimism remains strong, with 67% anticipating an increase in the country’s attractiveness as an investment destination over the next three years, compared to 41% in the previous year, the EY Romania attractiveness study conducted in the first part of 2024 reveals.


In light of its assessment on legal compatibility and on the fulfilment of the convergence criteria, and taking into account the additional factors relevant for economic integration and convergence, the European Commission considers that Romania does not fulfil the conditions for the adoption of the euro.

-Bucharest-listed One United Properties, the leading green investor and developer of residential, mixed-use, and office real estate in Romania, announced €47 million financing from Banca Transilvania. This financing will be used to fully repay the existing credit contracted by the company in 2021 from the Black Sea Trade and Development Bank for the development of One Tower, the first office building in Romania to achieve LEED v4 Platinum Building Design and Construction certification. Additionally, this new financing will ensure the partial repayment of existing shareholder loans and other associated costs.

-Libra Internet Bank sees Romania’s GDP growing 2.6% this year, key interest rate dropping to 6.25% and annual inflation falling to 4.5%.

-In May 2024, private lending in Romania increased by 5.7% to RON393.5 billion on an annual basis, after local currency loans posted a 7.6% hike and foreign currency ones a 1.6% increase, the National Bank of Romania (BNR) data showed.