In the spotlight

Iași – Romania’s Regional Retail Capital: The Country’s Highest Retail Density and a Rapidly Expanding Commercial Market
Iași – Romania’s Regional Retail Capital: The Country’s Highest Retail Density and a Rapidly Expanding Commercial Market 1920 1079 ROMANIA PROPERTY CLUB

With a county population approaching one million inhabitants, of whom 48% live in urban areas, Iași has become one of Romania’s most attractive expansion destinations for both international and domestic retailers.

At city level, Iași boasts the highest retail density in Romania, with 764 sqm of modern retail space per 1,000 inhabitants, outperforming Bucharest, Timișoara, Brașov and Cluj-Napoca.

The city’s retail landscape underwent a major transformation in 2025 with the opening of Mall Moldova, developed by Prime Kapital. Covering a total gross leasable area of 110,000 sqm, the shopping centre accommodates more than 250 brands, including 50 retailers making their debut in the Iași market. Its food court features 30 dining concepts and seating for approximately 2,500 visitors.

Iași’s modern retail stock currently totals approximately 207,700 sqm, dominated by three flagship schemes: Mall Moldova, Palas Mall and Iulius Mall. Each serves a distinct catchment area: Iulius Mall benefits from its proximity to the city’s university district, Palas anchors the historic city centre around the Palace of Culture, while Mall Moldova serves the rapidly expanding western gateway of the city.

The area surrounding Mall Moldova continues to attract major investment. Construction is currently underway on IKEA’s first store in north-eastern Romania, covering approximately 16,000 sqm. Iași will become the Swedish retailer’s third Romanian city after Bucharest and Timișoara.

According to information provided by 4BIZ Properties to Romania Property Club (RPC), two DIY retailers have recently completed or are in the process of completing acquisitions of development land totalling approximately 19.5 hectares, signalling continued confidence in the region’s retail potential.

Retail expansion is also extending into Iași’s metropolitan area, following the rapid development of new residential communities. After successful projects in Miroslava and Bucium, IULIUS is further expanding its neighbourhood retail concept with Family Market Tomești, a mixed-use retail destination offering approximately 13,000 sqm of leasable space alongside nearly 10,000 sqm of landscaped green areas. The scheme will be anchored by a Kaufland hypermarket, while Stay Fit Gym will operate the sports component and KFC will open its first Drive-Thru restaurant in the Iași metropolitan area. The total investment amounts to EUR 28 million.

Prime Retail Rents

Segment Prime Rent
High street – Main retail streets EUR 20–40/sqm/month
High street – Secondary retail streets EUR 10–20/sqm/month
Shopping centres (prime units) EUR 40–60/sqm/month
Retail parks EUR 8.5–9/sqm/month

Source: iO Partners (retail parks – Iași County)

Developed around the iconic Palace of Culture, Palas Iași represents one of Romania’s most successful public-private partnership projects. The development was selected following a public tender organised by the Iași City Council in 2004–2005 and implemented through a joint venture agreement under which the municipality contributed the land-use rights while sharing the project’s profits according to the contractual terms.

When inaugurated in 2012, Palas became Romania’s first large-scale mixed-use urban regeneration project, setting a benchmark for integrated city-centre developments. Between 2007 and 2024, the project generated a total of EUR 89.4 million in taxes, local contributions and payments under the public-private partnership agreement. Of this amount, EUR 86.26 million was generated after the project’s opening, between 2012 and 2024.

Having already invested approximately EUR 490 million in Iași, IULIUS is reinforcing its long-term commitment to the city through a further EUR 80 million investment programme. Central to this strategy is the comprehensive redevelopment of Palas Iași, designed in collaboration with the internationally renowned architectural practice Foster + Partners.

The redevelopment focuses on optimising and reconfiguring existing spaces rather than constructing new buildings. Both the architectural and functional transformation will create approximately 16,000 sqm of additional leasable space, enabling the introduction of new international brands while allowing existing retailers to expand.

Gabriel Iațco, Shopping Center Manager, Palas Iași:

“Overall, 2025 evolved broadly in line with our expectations, despite an economic environment that became increasingly volatile during the second half of the year. Even in a climate of greater consumer caution, we continue to see strong demand for premium shopping and lifestyle experiences, with customers prioritising products and services that deliver immediate value.

Against this backdrop, we continued implementing the Palas redevelopment strategy while closely monitoring consumer behaviour. As part of the transformation, we welcomed several new international brands, including Furla, Oltre, JD Sports, Buzz, LEGO, Crocs, Rituals, KIKO Milano, L’Occitane, Stay Fit and Popeyes.

Our diversification strategy continues throughout 2026 with the opening of highly anticipated brands such as Primark and Sport Guru. As the redevelopment progresses, additional retailers will join the project, further strengthening our tenant mix across high fashion, jewellery, sports, beauty, food & beverage, dining, entertainment and edutainment, while introducing new leisure experiences within Palas Park.”

Iași Office Market: Competitive Talent, Lower Costs, Big Ambitions
Iași Office Market: Competitive Talent, Lower Costs, Big Ambitions 2048 1152 ROMANIA PROPERTY CLUB

Iași combines its position as one of Romania’s leading university cities with one of the most competitive cost profiles among the country’s secondary office markets. The city’s salary gap compared with Cluj-Napoca – around 30%, and Timișoara – approximately 15%, is not a disadvantage but rather a compelling argument for IT, outsourcing and professional services companies looking to optimise operating costs without compromising access to skilled talent. While Cluj-Napoca remains the country’s largest regional office market in terms of stock and demand, Iași offers an efficient alternative, combining a highly qualified workforce with lower operating costs and rapidly improving connectivity.

Prime office rents in Iași currently range between EUR 13 and EUR 18 per sqm/month for Class A buildings and between EUR 10 and EUR 13 per sqm/month for Class B properties, according to data provided by iO Partners to Romania Property Club (RPC).

“There are currently no office buildings under construction in Iași, which is understandable given the significant expansion of the city’s office stock in recent years. More than 80,000 sqm of leasable office space was delivered in 2023 alone, through the completion of Palas Campus and the first office phase of Silk District, representing an increase of almost 40% in the city’s modern office stock within a single year. It is evident that a market of Iași’s size cannot absorb deliveries of this magnitude every year,” explain iO Partners representatives.

Although no office projects are currently under construction, the market retains considerable development potential. Future office phases within Silk District, an additional office building within the United Business Center (UBC) complex, and several smaller projects currently in early planning stages could accommodate any increase in occupier demand over the coming years.

The IT and telecommunications sector remains by far the dominant occupier in Iași’s office market, reflecting the city’s growing reputation as one of Romania’s leading technology hubs. Historically, this sector has generated just over 70% of total office demand, while professional services and business process outsourcing (BPO) account for approximately 12%.

As of November 2025, Iași’s IT and communications sector employed nearly 19,000 professionals, providing a strong foundation for office demand. At the same time, occupier requirements are evolving, shifting away from large-scale outsourcing operations towards smaller, higher-value teams specialising in artificial intelligence, cloud technologies and machine learning. This trend increasingly favours premium Class A office buildings over older Class B assets.

Iași benefits from a substantial stock of modern, high-quality office space. However, demand remains relatively lower than in other regional markets, resulting in a comparatively higher vacancy rate. At 13.3%, Iași records the highest office vacancy level among Romania’s major regional cities, although this figure is largely driven by older, less competitive buildings. Premium office assets continue to perform strongly, with leasing activity primarily consisting of renewals and expansions within established business parks.

With a total modern office stock of approximately 296,000 sqm, Iași ranks as Romania’s second-largest regional office market after Cluj-Napoca (340,000 sqm) and slightly ahead of Timișoara (293,000 sqm).

Ionuț Pavel, Office Buildings Manager, United Business Center Palas:

“Iași has established itself as a strong player in both the Romanian and wider regional office markets. In terms of attracting international companies, the city competes not only with other Romanian cities but increasingly with business destinations across Europe, benefiting from a highly qualified workforce, competitive operating costs and an attractive quality of life.

We started 2026 by signing new lease transactions exceeding 3,300 sqm across Palas and Palas Campus. At the same time, we are engaged in advanced negotiations for larger office requirements of more than 1,000 sqm, although most current enquiries are for spaces ranging between 300 and 500 sqm. Demand is primarily driven by companies operating in banking, business services and AI solutions.

We tailor each project to our tenants’ specific requirements, which frequently involve redesigning layouts, reconfiguring office space and providing a high degree of flexibility. Our objective remains to maintain occupancy levels between 95% and 100% across all office buildings within the IULIUS network.”

New Residential Market in Iași: Moderate Price Growth Keeps the City Among Romania’s Most Affordable
New Residential Market in Iași: Moderate Price Growth Keeps the City Among Romania’s Most Affordable 2560 1440 ROMANIA PROPERTY CLUB

In April 2026, the average asking price for new apartments in Iași reached EUR 2,053 per sqm usable area, marking a 15% year-on-year increase, according to the Imobiliare.ro Index. Despite this upward trend, Iași continues to be one of the most affordable residential markets among Romania’s major cities.

For comparison, the average asking price for new apartments stands at EUR 3,434/sqm in Cluj-Napoca, EUR 2,717/sqm in Brașov, EUR 2,245/sqm in Timișoara, and EUR 2,632/sqm in Bucharest. The only major city with a comparable price level is Constanța, where the average reaches EUR 2,112/sqm.

At the same time, the supply of newly built homes in Iași declined significantly during the first part of 2026, falling 43% compared with the same period last year. Around 1,240 new apartments were available for sale during the first quarter of 2026.

The city’s highest residential prices are recorded in the Ultracentral area, where average asking prices exceed EUR 3,100/sqm, followed by the Copou district at approximately EUR 2,800/sqm. Meanwhile, Bucium, Dacia, and Mircea cel Bătrân remain the city’s most affordable residential neighbourhoods, with average asking prices below EUR 1,800/sqm.

RPC Talks with Răzvan Calița, Managing Partner, The Seller & Partners
RPC Talks with Răzvan Calița, Managing Partner, The Seller & Partners 763 574 ROMANIA PROPERTY CLUB

RPC Talks with Răzvan Calița

Managing Partner, The Seller & Partners

Company Profile

The Seller & Partners is a prominent, independent real estate agency based in Brașov, Romania. Founded in January 2025, the firm specializes in trading high-end and new-construction properties, connecting local sellers with international capital.

How is the sharp growth of tourism in Brașov influencing the new apartment market?

Demand from investors—who possess higher liquidity than buyers purchasing for personal use—has put upward pressure on prices. Developers are well aware that an apartment in a prime location can be sold at a premium to an investor calculating yield, compared to a local family relying on a standard mortgage.

Another consequence is a shift in the property mix. In new central or semi-central projects (such as the Coresi area or the Civic Center), developers tend to design more studios and 2-room apartments, and fewer 3- to 4-room units. The reason? These are the ideal units for short-term holiday rentals via platforms like Airbnb and Booking.

Moreover, the opening of the Ghimbav Airport has accelerated the perception of Brașov as an easily accessible international destination. Many buyers—hailing from Bucharest, but also from abroad, including the diaspora and foreign investors—are acquiring apartments as vacation homes, renting them out for the remainder of the year.

Due to high prices in the city driven by this tourism potential, many locals looking strictly for a home are being pushed toward metropolitan suburbs like Sânpetru, Ghimbav, Cristian, and Hărman. This is rapidly transforming “inner-mountain” Brașov into a commercial and tourism hub.

Are we entering the era of “Branded Residences” in Poiana Brașov?

The “Branded Residences” model offers owners the prestige of a 5-star brand alongside full access to hotel amenities, including spa services, concierge, and room service. The interest shown by major international players confirms the long-term growth potential of the area, effectively turning real estate into a luxury financial product.

Swissôtel Poiana Brașov stands as one of the most advanced projects of this kind. Apartment owners here benefit directly from the Accor Group’s premium standards. It is a professionally managed buy-to-let investment model where interior design is strictly dictated by the brand’s criteria. Already an established name on the local market, Swissôtel has been operational for 1.5 years, delivering concrete performance data that exceeds initial estimates. Investors who acquired this type of product are already enjoying net yields of over 10% per year. This historic performance has validated the business model to skeptical investors, proving that professional hotel management under a global brand is the key to profitability in 2026.

On the other hand, while geographically located in Cristian, Radisson Blu Grand Mountain Resort is designed as an extension of the mountain experience. It is an integrated resort with a strong emphasis on extensive amenities, such as wellness centers and restaurants. Its location in Cristian is strategic: it offers faster access to the highway and airport, bypassing seasonal traffic on the main Poiana road.

The Investor Appeal: Hands-Off Management & High Yields

Investors heavily favor the “Branded Residences” model due to its hassle-free management: the hotel handles maintenance, cleaning, and leasing, while the owner receives a share of the profit. Furthermore, a property backed by a renowned brand retains its value far better than an anonymous apartment building. Last but not least, these units boast superior liquidity, making them much easier to resell.

In Poiana Brașov, this specific segment is estimated to generate yields of over 9% per year, significantly outperforming the 4-5% average of standard apartments in the city.

Conclusion: If Tractorul is the residential “heart” of Brașov, Poiana Brașov and Calea Poienii are its “crown”. The shift toward branded residences marks Brașov’s departure from mass tourism and its grand entry into the international luxury league.

CONTACT

Brașov Market: Residential transactions freeze, but prices refuse to drop
Brașov Market: Residential transactions freeze, but prices refuse to drop 2048 1152 ROMANIA PROPERTY CLUB

The New Home (NH) market grew steadily throughout 2025, climbing from €2,384/sqm in January to €2,668/sqm in December. This represents an annual increase of approximately 11.9%. Meanwhile, the Old Market experienced more tempered growth (from €1,999 to €2,190/sqm), suggesting that demand is increasingly shifting toward new properties, despite their higher price tags.

The growth peak was recorded in Q2, when the overall market average jumped by over 3% compared to the beginning of the year.

When it comes to the housing segment, Sânpetru emerged as the “star” of 2025. Although it started with the lowest price point (€1,512/sqm in January), it wrapped up the year at €1,824/sqm, making a massive recovery compared to other areas. It stands as the region with the highest appreciation rate. Conversely, Stupini and Ghimbav remained more expensive overall but showed a more linear evolution with minor month-to-month fluctuations—a clear sign of a market that has reached a certain level of maturity and local capping.

Apartment Market Evolution (Average Prices €/sqm) in 2025

The table below summarizes quarterly averages for the general market, highlighting the pricing gap between new and old constructions.

Quarter New Home (NH) Average Old Market Average General Average Quarterly Change (%)
Quarter 1 (Q1) €2,457 €2,031 €2,186 —
Quarter 2 (Q2) €2,530 €2,116 €2,255 +3.15%
Quarter 3 (Q3) €2,586 €2,157 €2,300 +2.00%
Quarter 4 (Q4) €2,641 €2,179 €2,355 +2.39%

Regional Analysis (Housing Segment – NH Average Price) in 2025

For the house/villa segment in suburban areas, the evolution was more volatile but maintained an upward trajectory:

Area Q1 Average Q2 Average Q3 Average Q4 Average Annual Change (Q4 vs Q1)
Sânpetru €1,550 €1,690 €1,749 €1,797 +15.9%
Stupini €1,874 €1,811 €1,953 €1,951 +4.1%
Ghimbav €1,819 €1,884 €1,896 €1,891 +3.9%

Market Resilience and the 2026 Outlook

The residential market analyzed shows a high resilience to price increases. There were no negative quarters (declines), only correction and stabilization periods (such as Q3 for apartments). The price gap between new and old apartments widened throughout the year, reaching nearly €480/sqm in December.

Currently, the market is undergoing a transaction volume “freeze” (fewer closed deals), yet prices stubbornly refuse to drop.

Brașov in 2026 is no longer playing in the apartment speculation league. The city has entered a phase of technical consolidation, where the price per square meter is no longer driven solely by supply and demand. Instead, it is dictated by new regulatory rigors and a metropolitan infrastructure that has outpaced any other city in Romania.

In 2026, the average listing price for new apartments hit the €2,700/sqm threshold. Moving forward, we expect stagnation or a slight increase (3-5%), below the inflation rate. In real terms, this translates to a massive drop in purchasing power, not in shelf prices.

Key influencing factors include lending (stubbornly high interest rates are dampening enthusiasm for credit buyers) and energy efficiency. Old buildings will begin to rapidly lose ground to new developments due to skyrocketing maintenance costs.

Why Prices Will NOT Drop

  • The Regulatory Squeeze: New legislation (the “Nordis Law”) has cut off oxygen for developers who previously relied heavily on large down payments to finance other ongoing projects.
  • Rising Financing Costs: Forced to seek external financing (bank loans, investment funds), developers are now facing high development interest rates. Furthermore, the banking system—compelled to create specific products to guarantee client down payments—charges risk fees. All of these financial costs (amounting to 2-4% of the project’s value) are transferred directly into the final price paid by the buyer.
  • Higher Execution Costs: The mandatory implementation of high energy efficiency standards means construction costs are 15-20% higher than they were 5 years ago.

The Bottom Line: Price per square meter has become a direct reflection of legal security and energy efficiency. Anyone selling “cheap” in 2026 is, most likely, a project with a high risk of non-completion.

Market analysis conducted with the support of The Seller & Partners

RPC Talks with Emma Toma, AFI Romania
RPC Talks with Emma Toma, AFI Romania 915 910 ROMANIA PROPERTY CLUB

RPC Talks with Emma Toma

Head of Office Division, AFI Romania

Company Profile

AFI Romania is part of AFI Properties, a leading real estate development, management and investment companies, operating in Central and Eastern Europe since 1997.
AFI BRASOV is the second mixed-use project developed by AFI in Romania, inaugurated in 2020 in the hart of Brasov city, combining 45,000 sqm GLA of retail with 25,000 sqm offices (AFI PARK BRASOV) developed in phases.
AFI Romania has under management aprox. 300,000 sqm office areas and close to 175,000 sqm retail spaces.

What are the primary challenges and opportunities currently shaping the Brașov office market?

Brașov benefits heavily from a motivated, highly educated workforce and a low unemployment rate. The opening of the International Airport in 2023 was a game-changer, removing major logistical hurdles and drastically improving connectivity for corporate operations. Additionally, thriving tourism has fostered a robust hospitality infrastructure that helps attract and retain top-tier talent in the city.

On the flip side, the supply of Class A office spaces has historically lagged behind the demand of expanding corporations. In the tech and services sectors, workplace quality—spanning sustainability, premium amenities, and wellness—has now become a deciding factor in talent recruitment. AFI Romania’s footprint here since 2020 gives us a front-row seat to this emerging economic hub’s evolution. The success of our first phase confirms that the market is mature enough for premium investments, and there is immense potential in closing the gap between the demand for premium spaces and the current supply.

 

How has AFI Park Brașov 1 performed, and what kind of companies have moved in?

AFI Park Brașov 1 has been a resounding success and a powerful proof of concept for the local market. The building is 100% leased to high-profile IT companies, BPOs, and multinational service firms. In a market where quality space was scarce, full occupancy is the clearest testament to the depth of local demand and the quality we introduced in 2020. This definitive response is precisely why we launched Phase 2: Brașov’s appetite for premium workspaces is far from satisfied, and we intend to keep raising the bar.

 

What new features will AFI Park Brașov 2 bring to the market?

AFI Park Brașov is designed as a comprehensive work-and-lifestyle ecosystem, not just an office building. What makes this project truly unique in Brașov is its integration. Physically connected to the AFI Brașov shopping center, our tenants enjoy direct access to 45,000 sqm of retail, featuring over 150 international and local brands, a fitness club, cinema, beauty salon, and various daily services. Corporate tenants also benefit from the AFI Club loyalty program, which grants employees discounts between 10% and 30% across partner retailers and services.

Currently under construction, AFI Park Brașov 2 will deliver an additional 12,000 sqm of Gross Leasable Area (GLA), bringing the total footprint of the AFI Park Brașov office project to 27,500 sqm GLA.

Sustainability is at the core of our identity. The new building is targeting LEED Gold certification, designed to deliver over 20% in energy savings and a 30% reduction in water consumption compared to standard baselines. Furthermore, the project is on track to achieve LEED Zero Carbon certification—a commitment that firmly places AFI Park Brașov 2 at the forefront of responsible, forward-thinking real estate development in Romania.

 

Despite falling tourist number in 2025, the hotel development pipeline remains robust
Despite falling tourist number in 2025, the hotel development pipeline remains robust 1620 1080 ROMANIA PROPERTY CLUB

Brașov is increasingly positioning itself as a major hub of attraction, driven by its unique blend of economic development, tourism opportunities, and high quality of life. The destination benefits from upgraded infrastructure, easy access to major cities, and a landscape that harmoniously blends history with natural beauty. Beyond ranking among the top three national destinations, Brașov has been a constant fixture in major international travel guides over recent years.

  • National Geographic – “Best of the World 2025”: Brașov was included in this exclusive list of the 25 must-visit destinations for 2025. The publication described it as the “gateway to Transylvania,” praising its mix of medieval history, ancient forests, and the accessibility provided by the new international airport.

  • CNN Travel – Top Destinations for 2025: CNN included Romania in its recommended travel list for 2025, calling Brașov a central pillar of the “Transylvanian experience.” American journalists presented it as an authentic and less crowded alternative to Western Europe’s classic destinations.

Accommodation Capacity on the Rise

Currently, hotel capacity within the municipality of Brașov recorded a 4.7% increase in 2025 compared to 2024, expanding from 47 hotels (2,427 rooms) to 50 hotels (2,542 rooms). The most substantial growth in 2025 versus 2024—a striking 21.4%—was reported in the short-term rental apartments and units category, which surged from 2,081 units in 2024 to 2,527 units in 2025. This data is based on figures from the Ministry of Economy, Digitalization, Entrepreneurship & Tourism, analyzed by Est Hospitality.

HOTEL CAPACITY IN THE CITY OF BRAȘOV

Accommodation Type 2024 2025 2025 vs 2024 (%)

1-5 Star Hotel Rooms

2,427

2,542

4.70%

Short-Term Rental Apartments

2,081

2,527

21.40%

A Temporary Cooldown in Tourist Traffic

When it comes to tourist numbers, the 2025 figures indicate a decline compared to both the previous year and the pre-pandemic benchmark. In 2025, the county ranked 3rd nationally, attracting nearly 1.39 million visitors and registering 2.62 million overnight stays. A solid performance in the first half of the year was followed by a slight deceleration in the second semester—a trend observed across the entire mountain region.

In 2025, tourist arrivals and overnight stays remained below 2019 levels and lower than in 2024. Compared to 2024, the hotel market experienced a contraction of approximately 4%. Conversely, arrivals and overnight stays in short-term rental apartments remained relatively stable in 2025 compared to 2024.

TOURISM IN THE CITY OF BRAȘOV

Metric 2019 2024 2025 2025 vs 2019 2025 vs 2024

Hotel Arrivals

517,641

489,529

470,637

-9.10%

-3.90%

Rental Apartment Arrivals

N/A

116,794

114,954

—

-1.60%

Hotel Overnight Stays

1,002,192

900,733

868,730

—

-3.60%

Rental Apartment Overnight Stays

N/A

211,790

215,011

Source: Est Hospitality based on NIS (National Institute of Statistics) data

International Brands Bet Heavily on the Pipeline

Interest from international hotel chains remains exceptionally high. The most anticipated entries are in the ultra-luxury 5-star segment: Hyatt (rebranding the former ARO Palace) and Kempinski, which is debuting with a brand-new development in Poiana Brașov.

HOTEL DEVELOPMENT PIPELINE (2026-2028)

Property Rating Keys / Rooms Operator Estimated Opening

Hilton Garden Inn

4*

130

Hilton

2026

Radisson Blu Grand Mountain Resort Cristian

5*

46 villas & 20 rooms

Radisson

2026

Ibis Styles

3*

126

Accor

2027

Mercure Brașov Center

4*

180

Accor

2027

Hyatt Regency

5*

189

Hyatt

2028

Kempinski Poiana Brașov

5*

120

Kempinski

2028

TOTAL

811

Source: Est Hospitality

Industry Insight

“This year will mark the opening of the 4-star Hilton Garden Inn, which represents only the third hotel affiliated with an international chain in the city. Brașov will also welcome its first internationally branded 3-star hotel in 2027. Concurrently, in 2026, the number of short-term rental apartments is projected to surpass Brașov’s total hotel capacity.”

— Mircea Drăghici, Managing Partner, Est Hospitality

Business Blueprint in Brașov: Global Leaders and Local Champions Meet in an Emerging Office Hub
Business Blueprint in Brașov: Global Leaders and Local Champions Meet in an Emerging Office Hub 2560 1440 ROMANIA PROPERTY CLUB

Brașov is rapidly cementing its status as an emerging office market. Currently holding a total stock of 155,000 sqm, with an additional 21,000 sqm actively under development, the city accounts for just under 5% of Romania’s total modern office inventory.

According to data from iO Partners, monthly office rents in Brașov span between €11 and €15 per sqm for Class A buildings, while Class B spaces remain accessible at rates under €10 per sqm.

Historically, the tech and telecom sectors have been the main drivers of the local office market, commanding nearly 60% of total transaction volumes, followed by professional services and BPOs at 18%. Today, Brașov’s office infrastructure serves as a vital backbone for a wide array of sectors, including manufacturing, wholesale and retail trade, BPO, SSC, and IT services.

Major employers are drawn to the region by a highly competitive advantages:

  • An educated workforce: Over 20,000 students graduate annually.
  • Language skills: The local talent market offers a robust pool of multilingual candidates.
  • Cost-efficiency: Annual gross salaries range from €10,000 to €20,000 for general services, and between €10,000 and €50,000 for IT roles—significantly lower than Western European standards or other primary hubs in Romania.

As of mid-2025, Brașov county counts over 205,000 active employees across more than 30,000 businesses (including 26,179 micro-enterprises, 1,784 small businesses, 331 medium enterprises, and 82 large corporations).

The undisputed corporate titan of the region remains Autoliv, boasting 8,561 employees and a massive turnover of 6.06 billion RON in 2024, followed by other major employers like Selgros Cash & Carry and Schaeffler România. On the domestic front, Bilka Steel reigns as the largest 100% Romanian-owned company in the county and a national leader in the roofing sector, clearing the 1.5 billion RON turnover milestone in 2025. Meanwhile, state-owned IAR Brașov achieved an exceptional 2025, booking a profit surge of over 50% (reaching 48 million RON) fueled by robust aerospace manufacturing and maintenance contracts

The Two Pillars of Brașov’s Office Market: Coresi and AFI

The city’s commercial gravity centers around two main office hubs: Coresi and AFI.

Spanning 100 hectares, the Coresi district has fundamentally reshaped how the city lives, works, and grows. Managed by Nhood, the hub features 75,000 sqm of modern Class A office spaces, hosting more than 30 national and international companies and over 6,000 employees.

The hub maintains strong momentum:

  • In 2025, the leasing team closed 5,000 sqm in deals for prominent names like Terma, Arvato Systems, and Eviden.

  • The technical team seamlessly managed complete fit-outs to ensure zero-downtime relocations.

  • Looking ahead to 2026, the new U1 building is set to open, bringing 11,000 sqm of GLA to the market, with its first 2,000 sqm already pre-leased.

AFI Park Brașov 1 has been a resounding success and a powerful proof of concept for the local market. The building is 100% leased to high-profile IT companies, BPOs, and multinational service firms. In a market where quality space was scarce, full occupancy is the clearest testament to the depth of local demand and the quality we introduced in 2020. This definitive response is precisely why we launched Phase 2: Brașov’s appetite for premium workspaces is far from satisfied, and we intend to keep raising the bar.

Brașov consolidates its status as Romania’s central industrial hub
Brașov consolidates its status as Romania’s central industrial hub 2560 1708 ROMANIA PROPERTY CLUB

As a region traditionally renowned for its industrial heritage, Brașov ranks as Romania’s fourth-largest industrial hub—following Bucharest, Timișoara, and Ploiești—boasting a total stock of approximately 480,000 square meters. Positioned at the geographical heart of the country, it represents a core area of strategic interest.

According to data from iO Partners, prime Class A industrial and logistics rents in Brașov oscillate between €4.1 and €4.5 per sqm per month, fluctuating based on unit size and lease terms. The profile of major industrial tenants locally mirrors the region’s manufacturing DNA. Consequently, the automotive industry (auto parts) generates roughly 50% of multi-annual demand, followed by light manufacturing (22%), the logistics sector (15%), and retail & FMCG (6%).

Major institutional investors maintain a strong local footprint and continue to expand. VGP currently has a new 35,000 sqm warehouse under construction. Concurrently, CTP is developing two industrial parks in the region: CTPark Brașov and CTPark Brașov West. Furthermore, M Core is set to launch its first-ever industrial project in Romania here—a 16,000 sqm development. This will be an in-city logistics project, meticulously partitioned into small-business modules.

According to analysts at The Seller & Partners, Brașov is undergoing a phase of organic expansion. This trajectory is fueled by major international players, a nationwide repositioning of the workforce, and forward-thinking urban planning that balances production areas with residential growth.

Investor appetite for industrial land remains high, with a clear focus on the North-West axis. While the strategic triangle formed by Cristian, Râșnov, and Ghimbav continues to attract the bulk of capital placement, development pressure is visibly shifting toward the wider metropolitan area. In 2026, attention is strategically turning toward Codlea. Its geographical positioning is evolving into an unbeatable competitive advantage: immediate proximity to Brașov International Airport and a direct connection to the future highway interchanges leading toward Sibiu (A13) and the Moldova region.

INSIGHTS FROM THE EXPERT

Dana Bordei, Country Commercial Manager, VGP Romania

Q: Brașov is a traditional manufacturing destination. What were the main challenges over the past year, and where do you see future growth opportunities?

Dana Bordei: Over the past year, the market has been shaped by several converging pressures: higher financing costs, continuous sensitivity toward construction and fit-out budgets, and a more cautious tenant base hesitant to make early commitments.

Simultaneously, occupiers have raised the bar regarding energy performance and operational cost predictability. This shift has moved negotiations away from mere base rents toward total occupancy costs and sustainability certifications. In essence, projects capable of delivering modern specifications, energy efficiency, and flexible unit sizing have consistently managed to capture demand.

Looking ahead, Brașov’s growth opportunity lies in its role as Romania’s central hub, both for production-adjacent operations and regional distribution. We see sustained demand coming particularly from: * Automotive and industrial supply chains (including suppliers and light assembly); * 3PL (Third-Party Logistics) and contract logistics servicing Transylvania and broader national coverage; * Pharmaceutical and healthcare distribution; * Companies seeking more resilient “nearshoring” footprints backed by solid labor access and reliable infrastructure.

At VGP, we have heavily focused on sustainability-driven differentiation, which is increasingly becoming a deal-breaker for international tenants.

Q: What is the current status of the VGP park, and who are the anchor tenants?

Dana Bordei: VGP Park Brașov already hosts an impressive portfolio of tenants spanning a wide array of sectors, such as automotive, pharma, distribution, and manufacturing—a testament to the park’s versatility and market appeal.

Among them are household names such as Inter Cars, Autoliv, RETURO, DB Schenker, Miele Tehnica, and Fildas, among others. These tenants highly value our strategic location, state-of-the-art facilities, and VGP’s unyielding commitment to quality and sustainability, which were key drivers in choosing us as a partner.

Developed on an impressive land footprint of approximately 360,000 sqm, the logistics park is master-planned to meet both current and future market demands, offering a total potential build-up area of 180,000 sqm.

Brașov Market: Urban agglomerations capture the attention of retail investors
Brașov Market: Urban agglomerations capture the attention of retail investors 2160 1440 ROMANIA PROPERTY CLUB

While Brașov’s shopping center stock has remained constant at approximately 140,000 square meters—dominated by its two mega-projects, Coresi and AFI—investor attention has pivoting toward proximity retail and new urban agglomerations.

The Coresi Shopping Resort spans a gross leasable area (GLA) of 63,000 sqm and reached a milestone of 15 million annual visitors last year. This footprint was sustained by continuous community engagement and a dedicated campaign celebrating Coresi’s 10th anniversary, featuring music festivals, sports, and cultural projects. The Coresi brand remains one of the most acclaimed in the city, ranking 3rd in the “Top 100 Most Loved Brands in Brașov,” securing leadership positions in brand awareness and loyalty, according to Nhood data.

The next strategic milestone for Coresi is the transformation of The Hangar, a historic industrial structure that predates the current project and forms a vital part of the area’s identity. The development approach focuses on preservation and transformation rather than demolition, aiming to reactivate the space and integrate it as a new urban landmark and a connection point between generations, Nhood reports.

On the other hand, AFI Mall opened its doors in October 2020 with a footprint of 45,000 sqm. It hosts 150 stores and premium brands, including Zara, Levi’s, Tommy Hilfiger, Gant, Under Armour, Mango, and many others. The center features a 3,500 sqm terrace offering panoramic views of the Carpathian Mountains, equipped with playgrounds, relaxation zones, cafes, and numerous restaurants. Strategically located just a few minutes’ walk from the historical center , the mall boasts a monthly footfall of 750,000 visitors, 51% of whom are women.

RETAIL RENTS IN BRAȘOV

Asset Type Rent Range (Euro/sqm)
Shopping Centers / Malls €30 – €40
High Street Retail (Stradal) €10 – €30
Retail Parks €8.5 – €9

Source: iO Partners

Market Maturity: The Shift to Flexibility and Proximity

According to data from The Seller & Partners, the starting point for 2026 reveals a retail market that has reached full maturity. Large “one-stop-shop” commercial formats have successfully covered the city’s main consumer axes. With a stabilized stock of modern space, Brașov no longer requires new commercial giants, but rather a more intelligent distribution of existing points of sale.

Despite high occupancy rates, the market is far from stagnant. While a wave of new pipeline projects is on the horizon, the underlying format has shifted radically. Developers are now betting heavily on Retail Parks and Strip Malls—more flexible structures with lower operational costs and direct street-level access. These developments aim to fill the “gaps” left by the massive expansion of previous years, offering a fast-paced alternative to lengthy mall shopping trips.

Currently, two such pipeline projects are under construction:

  • Bartolomeu Retail Park: Developed by Repaco Capital in the north-western district of Brașov, this retail park is scheduled for inauguration in the near future and will feature a leasable area of approximately 5,500 sqm.
  • Codlea Project (M Core): The British investor M Core is adding Brașov to its expansion map with a new project in Codlea. The investment targets the construction of three buildings on a 26,436 sqm plot of land. One building will host a supermarket, while the other two will be dedicated to commercial galleries, bringing the total announced built-up area to 6,864 sqm.

The “Catchment Area” and Community Target Strategy

Ranked as the second most visited region in Romania after the capital, Brașov benefits from an extended catchment area, driven not only by the ski season but also by robust weekend leisure traffic. Consequently, prime downtown locations command high interest from investors and retailers alike.

A prime example is City Grill Group, the largest Romanian-capital restaurant chain, which closed 2025 with a consolidated turnover of €90 million. The group recently announced plans to renovate the famous Cerbul Carpatin restaurant. “The group invests in buildings that tell a story, where the public is drawn to an experience that is difficult to replicate in any other context or location,” company officials explained.

The chronology of recent developments points to a clear trend, note analysts at The Seller & Partners: where residential development builds up, retail inevitably follows. The current investor strategy targets high-density population clusters, shifting focus from general “high-footfall” thoroughfares to specific, localized communities. New projects are strategically positioned at the intersection of commuter flows between residential neighborhoods and business hubs, transforming retail into an essential proximity service.

Looking Ahead

Moving forward, the dynamics of the retail sector will remain intrinsically linked to medium and large-scale urban expansion. The growth of districts such as Tractorul Nord, Bartolomeu, or the new residential axis in the Astra-Noua area serves as the catalyst for the next phase of commercial construction. The strip mall is no longer an isolated project, but a mandatory component of the urban mix, validated by the modern consumer’s need to save time.

The Bottom Line: High-street retail and proximity retail parks currently represent the most resilient asset class in Brașov. In a market deemed “fully covered,” survival and profitability now hinge on developers’ ability to accurately read the city’s new residential maps and deliver retail spaces exactly where “the lights go on” in the newly completed apartments.

© Romania Property Club, RPC, 2026 - All rights reserved.

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