Record breaking transaction on the Western Romania land market: CBRE advised VGP on the acquisition of a 39-ha land plot in Arad

The market of industrial spaces in the west of Romania, respectively in the counties of Timiș, Arad and Bihor, continues to attract the attention of investors, after doubling its volume in the last ten years, ranking second after Bucharest. CBRE, leading real estate consultancy company, recently advised the pan-European developer VGP on the acquisition of a 39-ha land plot in Arad. 

The transaction mediated by CBRE Romania, with a double-digit value, is the largest land acquisition in the west of the country this year.

The land plot purchased by VGP is strategically located at the junction of two of the main roads in Arad area, National Road 69 Timișoara-Arad, respectively A1 highway, ensuring utmost visibility and easy access to the project. The real estate already benefits from the Zonal Urban Plan and the related Local Norms of Urbanism (PUZ) approved for the targeted use with an occupancy rate of 60% and construction works for the first building will start this year, the delivery being planned in the second half of the following year.

“Additional to the development of the western area as a logistics hub, the land plots in Timiș, Arad and Bihor generate a high interest from developers, and we expect this appetite to increase. Arad is shaping up as a new destination, following Timișoara, already holding a stock of over 100,000 sq m of industrial spaces, with a vacancy rate of less than 3%”, explained Ion Dinu, Senior Consultant in the Land Development department, CBRE Romania, the consultant who advised VGP on the transaction.

Almost 77,000 sqm of industrial premises have been rented in western Romania in the last 15 months, the area capturing the attention of courier companies, and of those in the distribution and production field. The existing stock of 700,000 sqm has a vacancy rate of 5.2%, while 75,000 sqm of industrial spaces are under construction in Timiș, Arad and Bihor counties and will be delivered by the end of the year, according to CBRE Research data.