- Bucharest and Timiș are the most dynamic regions, with 240,000 sq m under construction
- Record-breaking volume of transactions in 2020: over 930,000 sq m leased
- 400,000 sq m are under construction nationwide, of which 60% are already pre-leased
The modern stock of industrial spaces in Romania has exceeded the threshold of 5 million sq m in 2020 and will reach approximately 5.5 million sq m this year, with over 60% of the area under construction being already pre-leased, according to the Romania Industrial Destinations research report, launched by CBRE, the leader of the real estate consultancy market.
„2021 has all the prerequisites to be an excellent year for the industrial property market in Romania, as 2020 proved to be a record year with over 930,000 sq m traded. Developers are investing in different areas of the country: from the well-known area of Timiș to Brașov and Bacău, which are beginning to attract growing interest, benefiting from land with potential for development and available labour”, stated Razvan Iorgu, Managing Director, CBRE România.
Nationally, there are approximately 400,000 sq m of industrial spaces currently under construction, over 60% of the area being already pre-leased, according to CBRE Research data. Therefore, after the stock of industrial spaces in Romania increased by over 570,000 sq m in 2020, the development activity continues to be intense this year as well, driven by the degree of vacancy of only 8% nationally.
With an existing stock of 2.3 million sq m Bucharest and its proximities, respectively Ilfov, continue to attract the largest volume of new developments, over 140,000 sq m being currently under construction. Next, with a stock of 1.2 million sqm, comes the northern and northwestern region of the country, which includes Timisoara, Arad and Cluj-Napoca. In this region, the developers have approximately 130,000 sq m under construction, of which over 100,000 sq m are in Timiș county, according to the Romania Industrial Destinations report.
“Timișoara and Arad continue to attract the attention of companies who need logistics spaces, enjoying developed infrastructure and easy access to Bucharest and to the northern and northwestern borders of the country. We are discussing with many companies, including from the retail industry and related fields, who are interested in expanding or moving their storage facilities in this area”, explained Daniel Gavril, Head of Research, CBRE România.
Another dynamic area in terms of new projects is the central region of Romania, which includes cities such as Deva, Sibiu, Târgu-Mureș and Brașov, where there is a stock of circa 670,000 sq m that will increase by 10% this year alone, of which approx. 15,000 sq m are under construction in Brașov.
Eastern and northeastern regions of Romania, with destinations such as Bacau and Iasi, have recently appeared on the radar of investors in the industrial sector, with benefits such as low labour costs, limited competition and a steady supply of land available for development, as specified by the report.
Romania has seen a fast-paced development of the industrial market in the last five years, the stock doubling its volume during this period. However, with only 260 sq m of industrial space per thousand inhabitants, our country is below the regional average. In contrast, Poland has an average of 510 sq m per thousand inhabitants and the Czech Republic, 840 sq m per thousand inhabitants. In the next 5 years, CBRE data indicate an increase in the stock of industrial spaces by over 50%, up to 8 million sq m, currently, the developers having almost 400,000 sq m of industrial spaces under construction.