Opportunity

A historic entry point for Office Real Estate

The Romanian market requires a local player with deep insight, real presence and the agility to seize opportunities as they arise.

01 Institutional gap

Romania’s real estate market is underpenetrated by local institutional capital.

02 Macro tailwinds

Convergence with EU driving economic growth generates attractive risk- adjusted investment opportunities in the real estate sector.

03 First-mover advantage

Few ASF-regulated* platforms with institutional governance and ability to execute complex, off-market transactions.

04 Cyclical adjustments

Institutional capital in the office sector in Romania is defensive as large players in the market undergo a process of deleveraging, refocusing on core markets and re-gearing strategies and portfolios.

Retreat of Foreign Institutional Owners

Less Competition, More Opportunity

Amid global macro uncertainty, international office investors are re-allocating capital back to core Western markets to shore up liquidity and reduce perceived frontier-market risk.

As a result, Romania is witnessing the exit or deleveraging of several institutional office asset owners, who are now disposing quality assets at discounted valuations.

In prior cycles, these office owners were dominant bidders. Their absence opens a rare window for local players to act decisively.

Conclusion

This dislocation creates a clear competitive edge for Romanian-based investors with local know-how, direct sourcing ability, and faster decision-making.

Pricing Reset

Institutional-Grade Assets at Discount

Transaction evidence**, albeit limited, shows Class A office buildings trading at yields above pre-2020 levels, despite strong occupancy and euro-denominated rents.

In many cases, current asking prices are close to replacement cost, meaning new development would not be economically appealing at today’s conditions.

This makes income-producing existing assets intrinsically more valuable and defensive against future competition.

Conclusion

We believe the current valuation levels represent an attractive entry point for long-term investors seeking yield and asset-backed inflation protection.

Opportunity

2026 first year in over a decade with potentially no delivery of offices.

Supply at a Historic Low

Structural Undersupply in the Making*

The delivery of new office space in Bucharest and major secondary cities has reached its lowest level in over a decade.

Several converging factors have led to this freeze in new development:

Meanwhile, demand has remained resilient — anchored by a rebound in work from office in all sectors — leading to tightening vacancies in quality assets.

Conclusion

The pipeline for new supply is anemic, which positions existing, well-located office buildings for strong rental growth and capital appreciation over the medium term.

Office Demand is Evolving

Not Disappearing

The post-pandemic narrative of “death of the office” has proven overstated, especially in value-for-money, talent-rich cities like Bucharest.

Multinational tenants continue to consolidate operations in Romania due to workforce quality and cost advantages.

Flexible work models are increasing tenant demand for quality, efficient buildings in central or well-connected locations — exactly the types of assets we target.

Conclusion

Demand is shifting, not disappearing. Tenants are upgrading, and this plays to our acquisition criteria and repositioning capabilities. The “Flight to quality” trend is real.

The Strategic Role of a Domestic REIT

Romania lacks a dedicated, listed institutional vehicle to professionally own and manage office assets for long-term income generation.

Conclusion

Demand is shifting, not disappearing. Tenants are upgrading, and this plays to our acquisition criteria and repositioning capabilities. The “Flight to quality” trend is real.