Romania's industrial & logistics market witnesses explosive growth
The Romanian industrial and logistics real estate market has kicked off 2025 with exceptional performance. Over 500,000 square meters of industrial and logistics spaces were leased in the first half of the year, marking a robust 25% increase compared to the same period last year.
This impressive volume represents the third most successful first semester in the last 12 years and is a significant 45% above the average for the analyzed period. New demand, excluding renegotiated contracts, accounted for 340,000 square meters, making up 66% of the total transacted area, indicating strong organic growth.
Bucharest leads the way, Timisoara follows strong
Bucharest continues to solidify its position as the undisputed primary market for industrial and logistics spaces in Romania. The capital city alone accounted for 70% of all leased spaces in H1 2025, totaling 359,100 square meters.
Timisoara emerged as the second-most active market, capturing 13% of the total with 69,400 square meters leased. Experts from Cushman & Wakefield Echinox anticipate that the total leasing volume for the year could once again surpass the one-million-square-meter threshold, signaling continued market dynamism.
Logistics & retail sectors fuel demand
The strong demand witnessed in the market is primarily driven by operators in the logistics and retail sectors. Logistics companies were responsible for over 30% of the volume, leasing approximately 160,000 square meters, while retail companies contributed significantly with 133,000 square meters, accounting for 26% of the leased area. In contrast, manufacturing companies had a smaller, yet notable, contribution of 27,000 square meters (5-6%).
While some of the largest contracts in the second quarter were renegotiations, such as Kyocera's 16,000 sqm in CTPark Timișoara Ghiroda and Sarantis's 11,000 sqm in WDP Park Dragomirești, the overall trend points to robust new business activity.
Expanding supply and stable rental market
The modern stock of industrial and logistics spaces reached an impressive 7.75 million square meters by the end of Q2 2025. Developers have been active, completing approximately 184,100 square meters of new projects in the first six months of the year—a substantial 77% increase compared to last year. Nationally, about 370,000 square meters are currently under construction, promising further expansion of available space.
Despite a slight increase in the vacancy rate to 5.8%, it is expected to decrease in the latter half of the year due to a limited number of speculative projects. Rental rates in Bucharest and other major industrial hubs have stabilized at 4.30 - 4.70 euro/sqm/month. Minor adjustments might occur towards year-end, influenced by rising construction costs and higher land acquisition prices, but the market remains competitive and attractive.
Source: zf.ro
