Romania faces decline in foreign direct investment and real estate activity

Romania is experiencing a notable decline in foreign direct investment (FDI). Data indicates that FDI fell to 669 million euros in the first half of 2026, a significant drop compared to previous years such as 2022 (4.5 billion euros) and 2025 (3.72 billion euros). This reduction is attributed to decreased reinvested profits, lower intra-group loans, and reduced capital participation, signaling concerns regarding the country's long-term competitiveness, regulatory stability, and infrastructure.

In the real estate sector, the Romanian market attracted approximately 300 million euros in transactions during the first half of 2026, down from 400 million euros in the same period the previous year. This represents about 5% of the total investment volume in the six largest Central and Eastern European (CEE) economies. While regional investments in the CEE area rose by 7% to 5.8 billion euros, Romanian investors are becoming increasingly selective, prioritizing properties with stable income and high energy performance. Despite the current dip, large ongoing transactions could potentially push the local market toward a 1 billion euro annual volume.