Logistics and industrial market in Romania has the potential of doubling to 8 million sqm in the next years, says Colliers

Modern industrial and logistic facilities reached 4.6 million square meters, up by approximately 10% compared to the previous year. Nearly 9% of the total stock was delivered just in 2019 and the market has potential to almost double to 8 million square meters in the next years, closing the gap between Romania and other CEE markets, Colliers International consultants say.

Romania’s stock of modern Industrial & Logistic spaces posted a record increase of 50% over the last three years, but there is still significant room for growth compared to other CEE countries. In the Czech Republic, modern I&L surfaces are at roughly 9 million square meters, while in Poland are around 19 million square meters.

“We see a lot of potential for expansion for the industrial and logistic real estate submarket, especially if major infrastructure works are to be delivered in the coming years, with automotive and retail being the most active drivers of demand. New and more restrictive EU rules regarding transportation are also likely to change the industrial and logistics landscape in Romania over the next years, increasing the need for regional storage hubs”, says Laurențiu Duică, Partner & Head of Industrial Agency at Colliers International.

Modern leasable industrial and logistics spaces delivered in 2019 amounted to over 400.000 sqm, which means that 1 in 11 leasable stock was delivered last year. Bucharest accounted for 62% or a total of 284,000 square meters of all deliveries. Another 500,000 square meters are expected to be delivered in 2020, with risks to this call tilted rather to the upside.

In 2019, automotive was the biggest driver on the demand side, generating close to one third of the deals, or 141.000 square meters, followed by retail. Pirelli’s new logistic facility in Slatina was the most important development, covering 62,000 square meters.