26.10.2023
With a strategic location offering access to pan-European road infrastructure and a skilled educated workforce, doubled by efforts of local authorities both in terms of infrastructure projects and cultural programs, Timisoara catches the eye of both institutional and local real estate investors.
The investors’ focus on this city determines a dynamic land market. Data from local consultancy company Hitch & Mosher show that prices for permitted plots vary between 35-60 Euro/sqm for logistics developments, 113-350 Euro/sqm for retail developments and 155 up to 1,490 Euro/sqm for residential and mixed-use schemes.
Timisoara represents Romania’s third office market, following Bucharest and Cluj-Napoca. Some big occupiers such as Amazon, IBM, Microsoft, Wipro, Hella or Accenture established offices locally. The modern office stock amounts for 300,000 sqm with another 24,000 sqm in the pipeline.
Residential sector was affected by the same turbulences which impacted the national housing market in 2023. While demand for residential for sale is lowering, residential for rent is seeing a noticeable increase. Data from imobiliare.ro shows an increase in demand of 44% in the last two years for rented apartments.
The city enjoys one the highest retail densities from Romania with a ratio of 1,055 sqm per 1,000 inhabitants. The total modern stock amounts to approx. 265,000 sqm with some significant projects. Iulius owns here a 102,000 sqm development, the largest shopping area outside of Bucharest.
Timisoara is the second most developed industrial & logistics market outside of Bucharest, with a moder stock of 733,000 sqm and more than 40,000 sqm under development. All major players are present locally: VGP, Globalworth, CTP and WDP.
Hotel sector is one of the most under-developed, with only 331 rooms built during the last ten years. “Timisoara European Capital of Culture 2023” is expected to bring future opportunities. In this respect, four new 4* & 5* branded hotels, totalling 416 rooms, are under development with delivery dates between 2025 – 2026.
Under those circumstances, Timisoara remains one of the strongest real estate hubs outside Bucharest, set to enter a new development phase.
