2021 Real Estate Trends: Poland and Romania Embrace Urban Regeneration
- Romania | 16 Mars 2021

In the ever-evolving real estate markets of Poland and Romania, a blend of international influences and local needs has shaped the landscape. In 2021, several key trends have come to the forefront, including urban regeneration, resi-for-rent, sustainability, and the gradual adoption of technology.
Both Poland and Romania grapple with underused or dilapidated urban areas within their cities, which detract from the quality of urban life and the overall cityscape. “Urban regeneration” is the term adopted to revive such areas, often with significant support from public authorities. While both countries’ governments have made strides in this direction, it is largely the industry that drives this trend forward. Successful urban regeneration initiatives blend various functions—residential, commercial, and retail—emphasizing the development of “mixed-use” projects. This aligns with the “15-minute city” concept, which aims to ensure that essential needs are accessible within a short walk or bike ride from one’s residence.
In Romania, particularly in Bucharest, numerous factories within the city were abandoned after the 1990s, leaving behind neglected areas. Simultaneously, developers flocked to the northern part of the capital, leading to traffic congestion and lengthy commutes. Urban regeneration and mixed-use projects aim to address both these issues by revitalizing neglected areas and bringing workspaces and shopping closer to homes. Notable projects include Vastint’s Timpuri Noi Square, developed on the site of a former factory, and One United Properties’ One Floreasca City, built on the former Ford factory site.
Despite high homeownership rates in the EU, real estate investors in Poland and Romania are increasingly focusing on resi-for-rent projects. This shift is driven by factors such as urbanization, affordability, and a preference among younger generations for flexibility. The rising cost of housing, coupled with slower salary growth, has made renting more attractive than large down payments required for homeownership. Developers in this space offer a range of services and amenities, including gyms, dry cleaning, and coffee shops, catering to a growing demand for hassle-free living.
Poland has made significant strides in the resi-for-rent sector, driven by rapidly rising rental prices. In 2020, Poland’s rental markets saw impressive growth, with new builds witnessing a 10-12% increase and the secondary market growing by 6%, second only to Luxembourg.
Sustainability has become a prominent topic in real estate discussions in Romania and Poland. Factors driving this trend include a heightened environmental consciousness among the population, evolving regulations, and a desire to secure long-term financing. The European Green Deal, aiming for a carbon-free continent by 2050, underscores the importance of reducing emissions from buildings, which account for 40% of energy consumption and 36% of energy-related greenhouse gas emissions. Developers now seek green certifications like BREEAM, WELL, and LEED to align with sustainable objectives.
The COVID-19 pandemic accelerated the adoption of digital solutions across various sectors, including real estate. However, both Romania and Poland have been relatively slow to embrace modern tools, ranking low among European peers in digitalization. The perceived high costs and resistance to change have been barriers to transformation. Nonetheless, the appetite for technology is growing, thanks to a pool of talented IT professionals in both countries. Start-ups are emerging with innovative solutions to streamline processes and enhance property transactions. Public authorities are also urged to embrace online procedures, highlighting the need for digital transformation in the industry.