In the next 5 years the modern industrial and logistic stock will reach 8 million sqm, Avison Young experts estimate
With over 630,000 sqm of modern industrial space delivered, the total stock in Romania exceeded 5.2 million sqm in 2020, which means more than double the stock compared to 5 years ago, according to a report released by real estate consulting firm Avison Young Romania.
The global pandemic that marked 2020 did not negatively impact the industrial and logistics market in Romania. On the contrary, as deliveries of different types of goods and courier services became essential for lockdown, logistics operations became more important, and more logistics space was needed. Also, consumption must be sustained, so production must continue.Iulia Bușcă, Head of Industrial Agency at Avison Young Romania
Two thirds of the deliveries of industrial spaces in 2020 were attracted by the areas around Bucharest, thus, the stock of modern industrial spaces around the Capital reached 2.4 million sq m.
For 2021, developers have planned to build over 700,000 square meters of modern logistics and industrial spaces. Also, more than 50% of new developments will take place in the Bucharest area, but also in Timișoara (17%), Craiova (10%) and Bacau (4%). Bacău has been a point of interest for developers for a long time, but 2021 is the first year for which concrete development plans are announced.
Modern industrial and logistics spaces in Romania will exceed 8 million sqm in the next 5 years
Avison Young experts estimate that Bucharest will continue to attract over 40% of industrial developments in the coming years, and then regional cities will soon follow.
The complete rehabilitation (along the entire length) of the existing Bucharest ring road will make the East and South areas more attractive, and the construction of the outer ring road (A0) will expand the industrial area around Bucharest.
Thus, it is expected that important international developers, who are not currently present in Romania, will enter the market.
About Avison Young
Avison Young has been in Romania for over 4 years and is one of the most important real estate consulting companies in the country, offering a full range of services in the field of Real Estate. Avison Young provides homeowners and tenants with real estate investment consulting, leasing, financing and mortgage lending for hotel, office, retail, industrial and residential properties.
Founded in 1978 in Toronto, Canada, Avison Young is one of the fastest growing real estate companies in the world, and continues to expand globally, currently managing over 37 million square meters.