Non-residential real estate developments to hit new record in Romania this year

Romania’s commercial real estate market has entered a new year of development on all its major segments, as investors plan to deliver industrial, retail and office spaces with a cumulated area of 1.2 million square meters, a new market record.

The growth remains largely demand-driven, as more than half of the spaces scheduled for completion in 2019 are already pre-leased.

By comparison, new spaces totaling around 850,000 square meters were delivered in 2018, according to data from real estate consultancy firms Cushman & Wakefield Echinox. The total retail stock exceeded 3.7 million square meters at the end of 2018, almost similar to the office one, while the industrial & logistics inventory was of around 3.5 million square meters.

This year, some 600,000 sqm of industrial and logistics space, over 400,000 sqm of office space and 200,000 sqm of retail space will be delivered.

After a stagnation period of six years (2009 - 2014), the industrial & logistics sector resumed its growth in 2015 and will reach a peak this year. "It is a dynamic market as developers have realized its potential and have decided to expand their portfolios by acquiring new land plots. We specifically refer to companies such as Global Vision, P3 or VGP, but also to Element Development and MLP, players who have recently entered the sector and have already announced deliveries for 2019," explained Rodica Târcavu, Partner, Industrial Agency, Cushman & Wakefield Echinox.

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