The stock of modern real estate in Romania continues to be driven by the robust demand in the industrial, logistics and office segments of the market, in line with the rising number of employees and foreign investments, according to a report by real estate consultancy firm JLL.
The total stock of such modern real estate properties surpassed 11 million square metres (sqm) at the end of September as the projects delivered in the first three quarters of the year amounted to 800,000 sqm.
The breakdown by market segments shows that out of the total stock, 4.2 mln sqm are industrial and logistics parks, 3.9 mln sqm are office buildings (in Bucharest and the four largest regional cities), and the rest of 3.27 mln sqm are retail projects, according to JLL. The stock of office spaces will surpass 4 mln sqm by the end of the year as well.
Out of the 800,000 sqm delivered in the first nine months of the year, 370,000 sqm were office and 370,000 sqm were industrial/logistics properties.
Against the background of increasing deliveries of new projects, the vacancy rate in the office segment registered a slight increase from 7.5% at the end of the second quarter to 8.2% at the end of the third quarter. JLL estimates that the vacancy rate will further increase in the last quarter to 8.5%, a sustainable level considering the size of the market.
The balance between the new supply and demand for industrial and logistics spaces is reflected by the vacancy rate, which continues to remain around 5.5-6% at national level and slightly higher in Bucharest.
(Photo source: ID 163061649 © La Fabrika Pixel S.l./Dreamstime.com)
Local and foreign investors have poured over EUR 5 billion in the local real estate market over the last five years,...