Romania emerges as a key industrial hub in Europe

Romania is increasingly being recognized as a potential industrial hub for Europe, with nearly 90% of its counties deemed attractive for industrial investments. This shift is highlighted in the report titled "ExCEEding Borders: CEE & Iberia – Driving Europe’s Industrial Transformation," which underscores the growing significance of Romania in the regional industrial landscape.

Currently, 36 counties in Romania are classified among the most appealing regions for industrial investments. The demand for logistics spaces reached a record high last year, with almost one million square meters rented, nearly double the volume from 2024. At the beginning of this year, the stock of modern industrial and logistics spaces exceeded 8 million square meters, with around 3.9 million square meters located in Bucharest.

Bucharest remains the leading industrial and logistics market in Romania, although its share of total demand is starting to decline. The western part of the country is becoming increasingly attractive for investments in production, distribution, and logistics, reflecting a broader trend where two-thirds of the European regions with the highest industrial potential are located in Poland, Spain, Romania, and France.

In terms of ongoing development, about 450,000 square meters of industrial and logistics spaces are currently under construction across the nation, with 195,000 square meters in the capital region. The production segment has gained significant traction, surpassing one-third of total demand in 2023-2024, compared to only a small share before the pandemic.

Victor Coșconel from Colliers notes that Central and Eastern Europe is becoming a strategic hub for European production. With Romania poised to develop approximately 2,000 kilometers of highways by the end of this decade, the country benefits from competitive costs and attractive state aid schemes. However, infrastructure improvements in road and rail remain critical for further investment.

The modern industrial spaces in Romania currently have an occupancy rate of about 5%, with rental prices for premium projects ranging between 4.5 and 5 euros per square meter per month. Investment yields for flagship projects are estimated at around 7.75%. As the market evolves, capital is becoming increasingly selective, focusing on robust projects that enhance regional competitiveness beyond national borders. Colliers consultants predict that Romania could reach 10-12 million square meters of modern industrial and logistics spaces by the end of the decade.