Industrial and logistics projects accounting for more than half a million sq. m are currently under construction and due to be delivered by the end of 2024, 60% of which being already pre-leased. The limited pipeline of speculative projects could put pressure on rental levels in the coming period due to the fact that, even though Romania recorded one of the most spectacular increases of demand for industrial and logistics spaces in the Central and Eastern Europe after the pandemic, rents remained the lowest in the region, according to data from the Cushman & Wakefield Echinox real estate consultancy company.
Therefore, around 555,000 sq. m of industrial and logistics parks are currently under construction and are planned to be completed in the Q4 2023 - Q4 2024 period, with 315,000 sq. m being already pre-leased. Bucharest (154,000 sq. m), Brasov (108,000 sq. m), Bacau (50,000 sq. m), Slatina (50,000 sq. m) and Timisoara (34,000 sq. m) are the main locations where developers will expand their footprints in the next 15 months.
Andrei Brinzea, Partner Industrial Agency Cushman & Wakefield Echinox: “In a context where the economic uncertainty continues to impact the tenants’ expansion plans, developers may adopt more cautious approaches when it comes to commencing new investments in industrial & logistics facilities, on the short term at least. This caution can also be noticed in other markets in the region, a region where the new supply has seen an y-o-y decrease by 16% in the first 9 months of 2023. However, we estimate that the developers’ appetite for new investments will bounce back on the medium term, given that we are already witnessing a downward inflationary trend and a stabilization of the financing costs, elements which could stimulate the tenants’ needs for new industrial premises.”
The YTD new supply was of 252,000 sq. m across the country. The total yearly development activity in 2023 will be lower compared with 2022 (821,000 sq. m), as the Q4 pipeline is estimated at around 183,000 sq. m.
In terms of demand, a gross take-up totaling 716,000 sq. m was recorded in the first 9 months of the year, reflecting a 22% y-o-y drop. The new demand continues to be the main driver of the leasing market, with a share of over 70% out of the gross take-up registered in Q3 2023 and also during the first 9 months of 2023.
Moreover, the local market has recorded the highest demand growth between 2020 and 2023 compared with the pre-pandemic levels among the CEE countries (Poland, Czech Republic, Romania, Hungary, Slovakia, Bulgaria). Thus, the average quarterly demand for industrial and logistics spaces at national level has increased by 254% since 2020 (to 267,000 sq. m vs. 75,400 sq. m in the 2010-2019 period).
The information provided by KomuniK
The countdown is on until the start of the largest local fest, Transilvania International Film Festival on 13 June. Or, as everyone calls it: TIFF. To pass the time and (or) have an alternative, do not miss some of the most entertaining stories of all time courtesy of suspense master Alfred Hitchcock. And check out […]
Roughly 45.7% of Romanians believe the country’s May presidential elections were rather unfairly organized, while 50.4% believe they were fair, according to a survey by INSCOP Research. Romania's previous presidential elections, which saw centrist Bucharest mayor Nicusor Dan emerge victorious, saw extreme polarization. Immediately after...
CARFIL Brasov, central Romania, is set to begin production of three types of Romanian military UAVs this year, news agency Agerpres reported. The drones, named Cuda, Sirin, and a marine drone, were unveiled at the Southeast Europe Special Operations Forces Forum 2025 (SEESOF) in Targu Mures, the first international expo-forum dedicated to the special operations forces. ...
The National Meteorological Administration of Romania, or ANM, aims to become a European regional hub for professional training in the field of climate change, according to director general Elena Mateescu. The official noted during “The Future of Agriculture” forum held on Thursday, June 5, that the ANM has already completed the European Agrometeorology Center, which […]
Romania’s Interior Ministry (MAI) and Defense Ministry (MApN) have warned of ongoing disinformation campaigns on social media aimed at manipulating public opinion. The latest wave of false claims includes reports about the imposition of martial law and border closures, seeking to heighten public anxiety over the risk of war. Romanians, whether abroad or within the […]
The International Monetary Fund (IMF) issued new recommendations to Romania, among which is an increase in VAT, but also excise duties, dividend taxes, and the introduction of two income tax rates of 15% and 25%. At the same time, it recommends the reduction or elimination of the health insurance contribution, as well as a change in […]
