Romania's property market steadies: a Q2 2026 update from Chestertons Romania

Chestertons Romania has released its market analysis for the second quarter of 2026, and the picture is one of quiet stabilisation rather than dramatic movement in either direction. According to Costin Rusu, CMO of Chestertons Romania, national transaction volumes held broadly flat year on year, even as the monthly pattern told a more encouraging story as the quarter progressed.

A market finding its footing

A total of 150,257 real estate transactions were registered across Romania during the second quarter, with activity building steadily each month: 48,135 in April, 50,314 in May, and 51,808 in June. Compared with 149,838 transactions in the same period of 2025, this represents an increase of 0.28% year on year.

The trajectory within the quarter is particularly relevant. April recorded a 3.56% year-on-year decline, May narrowed the gap to a 0.83%, while June recorded a 5.32% year-on-year increase. Rather than a market in retreat, this looks like one that is gradually regaining momentum.

Residential recovery led by Bucharest

The residential sector had a difficult start to the year. Just over 42,000 individual residential units were sold nationwide in the first four months of 2026, approximately 15% fewer than during the same period in 2025.

From May onwards, however, activity picked up, and Bucharest led the turnaround decisively. Transactions involving individual residential units in the capital rose by approximately 2.2% year on year in April, 15.9% in May, and more than 26% in June. Across all property categories, Bucharest recorded 10,398 real estate transactions in June alone.

This recovery has taken place against a backdrop of continued price growth. The House Price Index recorded an annual increase of 7.8% in Romania in the first quarter of 2026, alongside a quarterly increase of 3.2%.

Buyers remain constrained by higher financing costs and a widening gap between asking prices and purchasing power, while annual consumer price inflation reached 9.87 in March 2026. In this environment, liquidity is increasingly concentrated around realistically priced properties with complete legal documentation in strong locations.

Rental yields remain attractive

Romania continues to offer attractive residential rental returns compared with many markets in Central and Eastern Europe. Average gross residential yields were estimated at approximately 6% during the first half of 2026, compared with approximately 6.5% a year earlier, although returns vary significantly depending on the city, neighbourhood, property type and acquisition price.

Bucharest remains one of the country's strongest rental markets, particularly for smaller apartments in established residential districts, where gross yields generally range between 6 and 7.5%. Cluj-Napoca, by comparison, typically records gross yields of approximately 4 to 5%, reflecting significantly higher acquisition prices. Net returns are lower once vacancy periods, maintenance, taxation and property management costs are taken into account.

Commercial investment shifts toward retail

Romania's commercial real estate investment market generated approximately EUR 102 million in transaction volume during the second quarter of 2026, representing a 54% year-on-year decrease.

A total of nine major transactions were completed during the quarter, compared with ten during the same period of the previous year, suggesting that the decline in overall volume was driven primarily by smaller average deal sizes rather than a significant reduction in the number of completed transactions.

Retail assets dominated investment activity, accounting for close to 80% of quarterly investment volume, or approximately EUR 81 million, as investors continued to favour regional shopping centres and retail parks capable of generating stable and predictable income.

Across the first half of 2026, total commercial real estate investment volume reached approximately EUR 253 million.

Prime yields at the end of the quarter stood at approximately 7.75%  for offices, 7.50% for industrial and logistics assets, 7.65% for prime shopping centres, 8.10 per cent for regional shopping centres, and 8.00% for secondary retail parks.

The slight compression recorded in parts of the retail segment points to growing investor confidence in high-performing assets, while office and industrial yields remained broadly stable.

Taxation and the road ahead

Romania's property market operates under the 21% standard VAT rate introduced on 1 August 2025. A transitional 9% VAT regime remained available until 31 July 2026, inclusive, for one qualifying residential purchase by an individual, subject to specific conditions.

These conditions included a maximum usable floor area of 120 square metres, a maximum property value of RON 600,000 excluding VAT, and the existence of a qualifying advance-payment agreement concluded before 1 August 2025. For agreements concluded between 3 July and 31 July 2025, buyers were additionally required to have paid an advance of at least 20% of the property's value excluding VAT by 31 July 2025. The qualifying property also had to be delivered no later than 31 July 2026.

Higher taxation, ongoing discussions around property tax reform, inflation and financing costs remain the principal risks to sentiment heading into the second half of the year.

Chestertons Romania expects the market's direction from here to be shaped largely by fiscal policy, inflation and borrowing costs. With prices continuing to rise while affordability remains under pressure, success in this market increasingly depends on realistic pricing, high-quality assets, complete legal documentation and a genuine focus on long-term value.

For those looking to buy, sell or invest in the Romanian market, Chestertons Romania is on hand to advise.