The developers of industrial and logistics spaces completed last year new projects with an area of about 600,000 square meters, thus maintaining the investment plan announced at the beginning of the year, despite the COVID-19 crisis.
“Almost all the projects announced by the developers for 2020 have been delivered. Developers have not stoped or slowed down the construction plans, even if their decision involved increased security measures on construction sites. Dynamics of new developments were supported by a record demand of 670,000 square meters, up 15% from 2019 ”, said Costin Bănică (photo), head of the industrial department of JLL Romania.
In 2020, most of the projects were developed in Bucharest and the surrounding area, which accumulated almost 80% of the built area, respectively 465,000 square meters.
|New project delivered by areas (2020)
|Area||New projects sqm||% in total deliveries|
|Bucharest (extended area)||465,100||79.3|
|West – Northe-West||25,000||4.3|
Thus, the stock of industrial and logistics spaces in Romania exceeded the threshold of 5 million square meters, reaching 5.05 million square meters, from 4.46 million square meters at the end of 2019.
In regional profile, by far most areas are found in the extended area of Bucharest (over 54% of the national stock), followed by West – North-West (17%), Center (15%), and South (almost 11%). The rest of the areas account for only 3% of the total stock but offer opportunities for future growth.
Investments continue in 2021
Despite the pandemic, 2020 was a record year for industrial space transactions. At the national level, over 670,000 square meters of industrial space were leased, increasing by approximately 15% compared to the volume recorded in 2019, in turn, a record year.
Last year, JLL also had an important contribution to the market performance, carrying out leasing transactions of over 200,000 square meters, thus maintaining the market leader for the 4th consecutive year, with a share of 32.5% of the area rented through real estate agents (640,000 square meters).
Out of the total demand of 670,000 square meters, the net demand represented over 70%, respectively 478,000 square meters.
“The industrial space market has kept its dynamism from previous years, and in 2020 we even saw more activity. The record set by the demand last year encouraged developers to continue investing, so that by 2021 the projects announced remain at a level comparable to that of 2020, respectively almost 590,000 square meters, which encourages us to say that this year will be a good one for this segment of the real estate market “, added Viorel Opaiț, Business Development Director, JLL Romania.
|Deliveries of industrial spaces based on developer’s data (2021)
|Area||Pipeline sqm||% in total pipeline|
|Bucharest (extended area)||250,900||42.7|
|West – North- West||170,700||29.0|