European Outlook 2026
Bucharest, January 2026: The leading investors and property developers in Romania anticipate rental growth throughout 2026, particularly in the office segment, while occupier demand shows signs of consolidation rather than expansion, according to the 4th edition of the Cushman & Wakefield Echinox “Real Estate Investors Sentiment Barometer”.
Cushman & Wakefield Echinox surveyed the top management of local, regional and global investors and developers, with a combined Romanian real estate portfolio valued at more than €15 billion, thus having a share of approximately 50% of the local modern real estate market.
Vlad Săftoiu, Head of Research Cushman & Wakefield Echinox: “Investors generally anticipate a period of market stabilization, with limited forecast of sharp rental, demand and value growth, factors which suggest that Romania remains an attractive destination, with conditions that support growth and investment on all market segments, even if a number of challenges persist.”
Most respondents foresee a positive office rental evolution in the next 12 months, with 56% effectively expecting growth, 39% forecasting stability, and only 5% predicting a decline. The consistently high percentage of respondents forecasting rental growth over recent years suggests sustained confidence in the long-term upward trajectory of this market segment.
After a period of strong optimism between 2022 and 2023, when most of respondents anticipated rental growth in Romania’s industrial & logistics market (peaking at 75% in 2023), expectations have moderated in the subsequent years. In the latest edition of the barometer, 52% of respondents expect rents to remain stable, 36% foresee further growth, and 12% predict decreases. This shift suggests a growing perception related to market stabilization and a potential rental growth slowdown.
The results indicate a cautiously optimistic outlook for retail rents. While 41% of respondents expect increases, nearly half (49%) anticipate stability, and only 10% foresee decreases. The consistent share of stable expectations implies that the retail market enters a period of post-pandemic normalization, supported by steady demand and a broader economic stability.
Fiscal changes are perceived as the main factor influencing occupancy costs across the real estate market, cited by 20% of respondents. Geopolitical developments and macroeconomic uncertainty follow closely (18% each), while inflation (17%) and interest rates (13%) are also considered significant factors impacting rental levels and overall demand.
In terms of demand for new spaces, the office outlook is still stable, with the market showing signs of consolidation as many tenants chose to adapt to new work models rather than pursuing expansion. The industrial & logistics segment also appears to be stabilizing, reflecting a mature and balanced demand environment, while there appears to be a cautiously positive outlook when it comes to retail spaces, with steady confidence but limited expectations for major changes ahead.
Investors are still optimistic about the Romanian commercial real estate market, even though their focus is diversifying.
Industrial & logistics assets lead in potential, while alternative segments such as hotels and residential (including PRS or PBSA) are gaining momentum. Offices show gradual recovery, retail remains moderate. Most investors aim to expand or maintain their portfolios, thus signaling continuous confidence despite caution.
Bucharest and the secondary markets consolidated their positions as the preferred investment destinations. 72% (compared with 77% in 2024 and 66% in 2023) of respondents indicate Bucharest as their main location for new investments, while 34% (31% in 2024 and 24% in 2023) are actively targeting tertiary locations (cities with less than 200,000 inhabitants). Secondary cities are also a very attractive destination for 68% of respondents.
A strong majority of investors (56%) plan to expand their portfolios in 2026, while 35% intend to maintain their current position and 9% anticipate reducing their activity. Although the share of investors pursuing expansion decreased compared with previous years, the overall sentiment remains optimistic, reflecting continued confidence in market opportunities.
Banks are the main source of financing for 34% of respondents, while 21% each claim that the capital required for further investments comes from shareholder loans and own funds.
Investor perceptions remain relatively consistent in 2025, with bureaucracy (58%) and the quality of transport infrastructure (42%) seen as the main challenges. The quality of IT infrastructure is still highly appreciated, with 80% of respondents rating it as “very good” or “excellent”. Declines are observed in perceptions towards taxation, the labor market and overall economic stability, suggesting a more cautious investor outlook compared with 2024.
Investors have a relatively mixed perception regarding the Romanian economy, as over half of respondents (52%) expect GDP to register moderate growth on the short term, while 15% anticipate a more solid growth and 33% foresee a decline. The results thus indicate moderate optimism, reflecting expectations of slower economic momentum amid ongoing market adjustments.
Despite a more selective investment environment, the market sentiment remains steady as most investors expect their portfolio values to stabilize over the next 12 months, reflecting confidence in long-term market fundamentals.
The Romanian real estate investment market has been very consistent during the last decade, with a cumulative transaction volume exceeding €8 billion since 2016.
The market continues to hold firm, supported by sustained occupier activity and a new supply pipeline of more than 800,000 sq. m of office, industrial and retail spaces scheduled for delivery over the next two years.
