TIMISOARA REAL ESTATE OVERVIEW

The physical proximity of Timisoara to Central Europe leaders (Austria, Germany, Italy, etc.) and pan-European road infrastructure massively contributed to the transfer of know-how and investments in manufacturing capabilities, laying the ground for accelerated economic development.

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.

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.

As the real estate market undergoes a significant transformation, developers are increasingly tasked with integrating energy-efficient practices and adhering to evolving standards and certifications. Veolia România, through its local ecosystem of companies, follows an approach that focuses on reducing carbon footprints, reusing resources and minimizing their usage and consumption, and enhancing cost efficiency. Valentin Zaharia, Tehnical & Performance Director, Veolia Romania:“By significantly lowering CO2 emissions, often up to 90% compared to conventional systems, the GeoExchange solution can enable real estate developers to achieve stringent ESG benchmarks,”

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/sqm, 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/sqm.

The most expensive new apartments are in the city center and in the Take Ionescu area, where the average reaches 2,764 Euro/sqm. At the opposite end of the spectrum were neighborhoods such as Girocului or Braytim in the first semester, where the square meter is sold for prices barely exceeding the threshold of 1,600 Euro/sqm.

The total stock of modern industrial and logistics spaces in Timișoara has increased by approximately 10% in the last year, reaching 850,000 sqm. 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.

Rent-wise, the prime asking rent slightly increased to 4.5 EUR/sqm, following similar increases across the country, mainly as a result of across-the-board spikes in construction, financing, and land costs.

Notable transactions include the Kyocera renewal with CTP and the RPW Logistics renewal with VGP. Most recently, Great Wall Motor announced a new partnership with the local auto components producer Elba, marking a significant market entrance.