Bucharest yields remain well above Western European levels

Business Forum
Bucharest is consolidating its position within the Central and Eastern European (CEE) real estate market, combining rental growth across major asset classes with investment yields that remain well above Western European levels, according to the DNA of Real Estate Europe Q2 2026 report published by Cushman & Wakefield. Across Europe in Q2 2026, prime office rents rose 4.5% year-on-year, retail rents increased 3.0%, and logistics rents grew 2.4%, while investors remained selective as yield movements pointed to a more balanced market following the repricing cycle of recent years.

In the office sector, Bucharest prime rents reached €22 per sqm per month, up 4.8% year-on-year, broadly in line with the strongest-performing markets in the region. Prime office yields held steady at 7.25%, substantially above the European average of 5.39%. The retail segment recorded the sharpest movement, with prime rents on Calea Victoriei reaching €90 per sqm per month, a 28.6% year-on-year increase and one of the highest growth rates among European high street destinations monitored in the report. Prime retail yields stood at 7%, reflecting continued occupier demand for the city's best locations.

The logistics market also maintained positive momentum. Prime rents rose 2.1% year-on-year to €4.8 per sqm per month, while prime yields remained stable at 7.5%, among the highest levels across Europe. Competitive occupancy costs, strategic location and expanding infrastructure support Romania's attractiveness for logistics operators and industrial occupiers.

"The European real estate market continues to be shaped by occupiers' focus on quality assets and investors' preference for markets offering an attractive balance between income return and long-term growth potential. In this context, Bucharest remains well positioned within the CEE region, combining solid occupier fundamentals with investment yields that are among the most competitive in Europe. The performance recorded across the office, retail and logistics sectors highlights the market's resilience and its growing maturity compared with other regional capital cities," said Vlad Săftoiu, Head of Research at Cushman & Wakefield Echinox.

Across the CEE region, office markets recorded average annual rental growth of 5.0%, retail rents advanced 7.4% and logistics rents rose 0.8%. Among CEE capitals covered in the report, Bucharest remains one of the markets offering the highest prime yields across all major sectors while sustaining positive rental growth and stable occupier demand, reinforcing its status as a destination for international investors and companies pursuing regional expansion.

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