Romania: a growing force in CEE industrial & logistics

 

Romania is rapidly establishing itself as a leading market for industrial and logistics real estate within the Central and Eastern European (CEE) region. According to Colliers' latest report, the country holds approximately 11% of the modern industrial stock in the CEE-6, maintaining its share despite rapid expansion across the region.

 

By the end of 2024, Romania's total modern industrial and logistics stock reached 7.5 million square meters, with a robust pipeline of over 370,000 square meters currently under construction. This growth trajectory positions Romania as the third largest market in the CEE-14, trailing only Poland and the Czech Republic.

 

Key drivers: nearshoring, e-commerce, and sustainability

 

The Romanian market's expansion is fueled by several factors. A significant driver is the increasing trend of companies relocating or expanding production capacities closer to Western European markets (nearshoring and reshoring). Coupled with booming e-commerce growth – Romania being one of the fastest-growing e-commerce markets in the region – this generates high demand for modern distribution centers and manufacturing facilities. Furthermore, there is a growing emphasis on ESG standards, leading to increased development of sustainable, energy-efficient buildings. Romania is already among the regional leaders in green certifications like BREEAM and LEED.

 

Market dynamics: demand, vacancy, and rents

 

While Bucharest currently concentrates nearly half of the national stock, demand is increasingly spreading to regional cities. This decentralization is supported by infrastructure improvements, proximity to Western borders, and land availability. Cities like Cluj-Napoca, Timisoara, Craiova, Ploiesti, and Oradea are attracting significant investment, particularly for build-to-suit projects and light manufacturing units. The total reported leasing volume exceeded 600,000 square meters in 2024, with strong contributions from manufacturing, retail, and e-commerce sectors. The average vacancy rate remains stable around 5%, and prime industrial rents range competitively between 4.5 and 5 euros per square meter per month.

 

Opportunities for businesses

 

For businesses seeking industrial or logistics space, Romania presents compelling advantages. Beyond strategic geographic location and competitive operational costs, there is easier access to labor, especially in regional hubs, offering a competitive edge over tighter markets like the Czech Republic or Slovakia. The market remains undersupplied relative to the size of the economy compared to regional peers like Poland or the Czech Republic, indicating significant potential for future growth and new developments, particularly in regional areas where demand is diversifying.

 

Investment landscape

 

Investment yields for prime projects in Romania are estimated at around 7.75%, surpassing the regional average and highlighting the market's attractiveness to investors. As the CEE industrial and logistics sector sees renewed investor confidence, Romania stands out with available land, expanding regional cities, and a diverse tenant mix. The strong construction pipeline ensures continued availability of modern, high-quality space to meet the evolving needs of businesses.

 

Source: agendaconstructiilor.ro