Romania’s industrial and logistics real estate sector continued its impressive growth trajectory in the first half of 2025, solidifying its position as a key market for businesses seeking expansion.
Over 417,000 square meters of industrial space were leased, marking a substantial over 20% increase compared to the same period in 2024.
This robust activity highlights the vibrant opportunities available for companies looking to establish or expand their presence.
Driving forces: retail, e-commerce, and strategic expansion
The primary demand drivers for industrial and logistics spaces in H1 2025 stemmed from the retail and consumer-driven sectors, accounting for at least two thirds of overall leasing demand. The escalating pressure for same-day or next-day deliveries is significantly prompting retailers to expand their footprint. This expansion often involves developing regional hubs strategically located near major urban centers and in well-connected secondary cities, ensuring efficient distribution networks.
Beyond logistics, retailer interest in direct expansion is also strong, particularly in medium-sized and small cities, and metropolitan areas of major urban centers. Discounters, FMCG chains, and international brands are actively expanding, which in turn fuels the need for efficient warehouses and logistics hubs in key cities such as Bucharest, Cluj-Napoca, Iași, and Timișoara. Manufacturing operations also contributed to demand, accounting for around 13% of leasing activity.
Strategic locations and connectivity improvements
Developers and investors are increasingly focusing on secondary locations near future highways or bypass roads. This strategic shift is driven by the anticipation of rising land values and significantly improved connectivity that these new infrastructure projects bring.
Romania now boasts over 1,300 kilometers of high-speed roads, with an additional 1,400 kilometers currently under construction or planned, underscoring the commitment to enhancing national logistics capabilities.
Specifically, the completion of Bucharest’s southern ring road and better connections from Craiova are boosting the logistics appeal of southern regions, creating new attractive zones for industrial development and leasing.
Market supply, vacancy, and rental stability
The market is actively responding to demand with new supply. In the first half of 2025, over 210,000 square meters of modern industrial and logistics space were delivered, with another 400,000 square meters currently under construction, poised to further expand options for businesses. Romania’s modern industrial stock is expected to surpass 8 million square meters soon, indicating a maturing and expanding market.
Despite strong demand, rents for modern industrial spaces have remained stable. In Bucharest, rents range from EUR 4.5 to EUR 5 per square meter per month, while in regional cities, they are between EUR 3.8 and EUR 4.5. The national average vacancy rate stands at a healthy 5.5%. However, businesses should note that this figure drops below 4% in certain high-demand submarkets like northern Bucharest, Cluj-Napoca, or Timișoara, signaling limited immediate supply in prime locations.
Source: romania-insider.com
