Bucharest was included for the first time in the European ranking of cities analyzed for investment in the Emerging Trends in Real Estate Europe 2026 report, recently published by PwC and the Urban Land Institute.
The report shows a favorable context for Central and Eastern Europe, as companies explore investment opportunities due to lower utility costs and a well-trained workforce.
Bucharest is 30th in the ranking, followed by Istanbul and Sofia. The report notes that the city is especially attractive due to the projected population growth, for which it received a score of 2.53, by far the highest among the 30 cities analyzed. In contrast, Romania’s capital is disadvantaged compared to other European capitals by modest economic growth prospects over the next two years, evaluated with a score of 0.4.
Moreover, the value of transactions recorded in the last two years is significantly lower than in other European cities included in the ranking, which means it is not liquid enough.
More broadly, Romania enjoys positive prospects and better visibility among investors in the real estate sector, according to an analysis by Cornelia Bumbăcea, Partner at PwC Romania, and Andreea Bistriceanu, Director at PwC Romania.
London, Madrid, and Paris remain the most attractive European cities for real estate investments this year, followed by Berlin and Amsterdam, according to PwC. From Central and Eastern Europe, the highest-ranked cities are Warsaw, in 12th place, and Prague, in 23rd, while Budapest ranks 29th, just ahead of Bucharest.
Market size and liquidity, indicated by 56% of survey participants, are the main factors investors consider when choosing a city for real estate investments or developments, followed by the city’s economic performance (48%) and the availability of assets or new development opportunities (34%).
The report identifies three major directions that will influence investment decisions in the real estate sector, namely digitalization, decarbonization (energy), and demographics, with safety increasingly visible as an additional factor.
From the perspective of many investors, digitalization and clean energy go hand in hand. In this context, data centers and new energy infrastructure (renewable energy production and storage capacities and networks) stand out as market segments considered by investors to have the best growth prospects in the coming years. In contrast, traditional offices, especially those located on the outskirts of cities, rank at the bottom in terms of attractiveness.
Demographic factors will also increasingly influence real estate markets in the coming years, highlighting, alongside population aging, the migration of young people to university centers. From this perspective, segments with interesting prospects are student housing, educational facilities, healthcare assets, and housing or care homes for the elderly.
Projects in the residential sector, hotels, logistics, or industrial facilities remain attractive from an investor perspective. In contrast, office and shopping center prospects are moderate or weak, especially for projects on the outskirts or outside cities. According to Emerging Trends in Real Estate Europe 2026, the coming year brings clear themes that attract real demand, the analysis shows: digitalization, clean energy, and demographic changes.
(Photo source: Vasile Bobirnac | Dreamstime.com)
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