STRONG FUNDAMENTALS FOR A NEW DEVELOPMENT STAGE OF THE CITY

2023 TIMISOARA KEY FIGURES
24.000 SQM
- New offices under development
1,463 EUR/SQM
- Medium price for new & old residential units
416 HOTEL ROOMS
- 4*& 5* under development
61.895 SQM
- Retail parks under construction
40.000 SQM
- Logistics & industrial under development
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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. In 2023 Timisoara is the European Capital of Culture, this major cultural initiative being expected to have an impact on touristic assets on the medium run.
“The last year was a prolific one for Iulius group on the office segment. We have finalized 80,000 sqm of office space, of which over 30,000 sqm in Timisoara, in the fourth United Business Center building. With this inauguration, in the mixed-use development Iulius Town we have consolidated the largest business hub in the West region of the country, which brings together some of the most powerful “intelligence” suppliers in the field of technology and automotive worldwide. In numbers, the office component of Iulius Town represents over 80,000 leasable sqm, 50 multinational companies from three continents, with approximately 9,500 employees, who deliver technologies and services used worldwide”, Laurentiu Manea, Office Building Manager, Iulius Town Timisoara


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.
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. The strong residential development in the last couple of years created new opportunities for proximity retail: there are 61.985 sqm of new retail parks under construction both in the city and in the county.
Timisoara is the second most developed industrial & logistics market outside Bucharest, with a total modern stock of 733,000 sq m (c.a. 11%) and more than 40,000 sq m under development. Its outstanding proximity to Western Europe, the border, and plug into the TEN-T infrastructure made Timisoara the go-to hub for manufacturing and logistics.


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.