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The logistics and industrial market was the most dynamic real estate sector in 2020

The total demand was up by 72% compared to 2019

The “pandemic year” turned out to be a bumper year for industrial and logistics, with total demand increasing by a staggering 72% over 2019, to nearly 784,000 square meters of leasing deals. A large part of the record demand came from various retailers, including FMCGs, expanding their presence nationwide, and various companies, not just pure e-commerce players, looking to branch out in the online sales segment, shows the annual report released by Colliers. The overall stock of modern industrial and logistic facilities in Romania reached 5.7 million square meters, up by over 0.5 million square meters compared to the previous year, and there is still significant room for growth compared to other CEE countries.

Romania remains one of the more undersupplied markets among the major CEE countries, having roughly half of the warehouse stock on a per capita basis compared to Poland and a quarter of Czechia’s. In excess of 0.5 million square meters of new modern I&L spaces were delivered in 2020, according to Colliers estimates. Bucharest accounted for around half of the total square meters of all deliveries and the rest scattered throughout the country – mostly in cities from Transylvania, but also in some southern parts of the country.

Bucharest remains the heart of the local logistics market, but there have been some slight changes from one year to another in the sense that more and more new warehouses are being developed outside Bucharest and 2020 was no exception. While some speculative developments were initially put on hold, the rosy economic results in the second part of 2020, coupled with the swift recovery in consumption, brought these back on the map in the second part of the year. CTP and WDP remain the major players, but VGP has also recently started to develop new projects. We have also some new names on the market that have the potential to make major investments in the next period, like Globalworth/Global Vision and Element Industrial”, says Vlad Mustață, Associate Industrial Agency at Colliers.

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The new roaring 20s | Colliers Romania: Real Estate Market Overview 2021