Timisoara confirms its development potential and, in addition to consistent investments in infrastructure, attracts two new real estate developments, with an investment value of over 100 million Euros, shows an analysis by Romania Property Club (RPC), based on the conclusions of the Timisoara Real Estate Roundtable, an event organized on Thursday, September 25, 2025.
Local and central authorities are focusing on investment for development, with a program in 2025 of 270 million Euro (City Hall) and 100 million Euro (County Council). The 3 billion Euro A9 motorway, which connects Timisoara to the Serbian border, is currently under action.
Two of the most powerful Romanian entrepreneurial groups are preparing two large-scale investments on a combined area of over 40 hectares. Țiriac Group has obtained the PUZ for a mixed development – housing, offices, commercial spaces, hotels and services – in the Abator area. Pavăl Holding has obtained a PUZ for a 36 ha industrial and logistics park located in the northern part of the city. The two projects total investments of over 100 million Euro.
Iulius Town remains the main business and commercial hub in the city, with a retail area exceeding 100,000 sqm and hosting 450 stores, and four modern office buildings, totalling 80,000 sqm, where 11,000 employees work. Iulius investments in Timisoara total 442 million Euro. “The trends we have seen since last year on the office market have continued in 2025. In the absence of new project deliveries, demand is moving towards the modern infrastructure created in previous years. The competitive advantage belongs to green buildings, whose efficiency is reflected in operating costs and in the comfort that employees have,” said Laurențiu Manea Office Buildings Manager, Iulius Town Timișoara. Regarding the retail component, Iulius Town’s market share reached 28% in 2025, the portfolio being expanded with exclusive brands, as well as department stores, while bringing together all the major fashion anchors.
What attracts investors to this area of Romania? Timiș is the third most popular destination (after Bucharest-Ilfov and Cluj) for foreign investors. Approximately 150 companies with international shareholding and a significant economic impact (turnover of over 5 million Euro and employing at least 10 people) have established their headquarters in Timiș. They operate mainly in the chemical and plastic materials, automotive and electronic components, transport, IT and agriculture sectors. By country of origin, Central and Western Europe dominates the top of investors. Timiș’s strong economy has kept the unemployment rate at 1.06%, while the average net salary is around 1,200 Euro, the third highest after Bucharest and Cluj.
The sharp economic development causes effervescence on the land market. Thus, data from real estate consultancy Hitch & Mosher shows that plots authorized for industrial development are priced between 35-60 Euro/sqm, those for retail development are priced between 120-500 Euro/sqm, and those for residential and mixed development are priced between 200-1,000 Euro/sqm.
The total office stock in Timișoara remained stable at 285,000 sqm, with the main projects in the city being Iulius Town and AFI Park. The requested rents vary between 12.5 and 14.5 EUR/sqm, and negotiations may become competitive, given the 15% vacancy rate.
The level of wages coupled with a lower cost of housing than in other regional poles, leads to a more generous disposable income that fuels the retail sector. According to Hitch & Mosher data, 200,000 sqm of commercial spaces are under development at the county level, with delivery deadlines Q2 2025 – Q1 2027.
In terms of housing affordability, Timișoara is below Cluj-Napoca, Brașov and Bucharest, but with a considerable increase compared to the previous year. The average asking price for new apartments in the first semester was 1,844 Euro/sq m, up 10% compared to the first semester of 2024, according to Imobiliare.ro data. In August, after the VAT increase, it reached 2,127 Euro/sq m.
Despite the rich calendar of events and the “European Capital of Culture 2023” initiative, statistics show for 2024 a number of tourists below the pre-pandemic level: the total number of tourists who arrived in Timisoara in 2024 is 9.21% lower than in 2019. In the first half of 2025, compared to the same period last year, the figures show an increase of 17.68% for hotels and 3.20% for apartments, according to INS data. The interest of tourism investors remains high for this destination. Data from the consulting company Est Hospitality shows that a number of 616 rooms affiliated with international chains are under development, the most recently announced being Radisson Individuals.
The total stock of modern industrial and logistics spaces in Timișoara has increased by approximately 10% in the last year, reaching 850,000 sq m. The county has seen its vacancy rate increase from 8.2% to almost 11% (the second highest in Romania after Iași), despite several notable large transactions and a total leasing activity that exceeded 85,000 sq m in the last 12 months.
