By the end of 2023, an additional 650,000 sq m of I&L space were under construction in Romania, out of almost 6 million sq m under construction across the region, Colliers said in its ExCEEding Borders, Navigating the Industrial Landscape and Workforce in CEE-13 report published on Tuesday.
Gross demand for I&L space in Romania reached 768,000 sq m in 2023, while the vacancy rate stood at 6%, reaching the upper end of the region’s average of 5% to 6%.
“We see very good interest for operations in Romania coming from companies present on the local logistics and manufacturing scene, as well as those looking to Romania for a potential entry. Good wages coupled with a better labour force availability than in other markets make Romania look like a good choice,” Victor Cosconel, Head of Office & Industrial Agencies at Colliers Romania, said.
Spanning 3.5 million sq m, Bucharest’s modern I&L facilities accounted for half of Romania’s, while related space under construction totalled 120,000 sq m, or 18.5% of the country’s total. Gross demand for I&L space in the capital city reached 297,500 sq m, absorbing 38.7% of nationwide demand, while the vacancy rate stood at 5%.
Romania's industrial property market has nearly doubled since 2020 due to economic growth, better infrastructure, and reshoring. The country's road network is set to double by 2030, with a new motorway across the Carpathian mountains and Schengen entry further boosting the market and turning Romania into a regional hub, according to Colliers.
As per the EU rules Romania offers the highest aid intensities for large companies, which can reach up to 70% of qualified costs.
Collier's report on the industrial and logistics sector covers thirteen countries in CEE: Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia (CEE-6); Estonia, Lithuania, and Latvia (the Baltics); as well as Albania, Croatia, Montenegro, and Slovenia (SEE-4). The company is operating in 68 countries worldwide, offering real estate and investment advice to clients.
Jun 28, 2024
