Volume of commercial real estate deliveries in Romania might double this year

The commercial real estate output in Romania could double in 2019 compared to 2018, if all the projects scheduled for this year are completed in due time, shows an analysis of real estate consultancy company JLL.

Based on the developers’ announcements, over 900,000 square meters (sqm) of modern non-residential spaces should be completed in Romania this year, of which close to half (400,000 sqm) are in industrial and logistics projects.

The stock of industrial and logistics spaces in Romania will thus rise to 4.2 - 4.25 million sqm, an increase of over 10% compared to the end of 2018. Mid-year, the stock already exceeded the threshold of 4 million sqm, of which over 2 mln sqm are located in Bucharest.

The development activity in this sector is encouraged by the demand having strengthened over the last three years: between January 2016 and June 2019, over 1.7 mln sqm of industrial and logistics spaces were rented. For comparison, between 2011 and 2015, only about 1.2 mln sqm of industrial and logistic spaces were rented in Romania.

On the office market, deliveries this year are expected to reach 333,500 sqm in Bucharest alone, more than double compared to 2018. The office stock in Bucharest was estimated at over 2.84 million sqm at the end of June, and by the end of the year it will approach the threshold of 3 million square meters.

On the retail segment, deliveries are expected to reach close to 180,000 sqm this year in Romania, most of which (166,000 sqm) are expected in the second half. The largest new project expected to be delivered by the end of this year is Festival Shopping Center in Sibiu (42.200 sqm).

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