“The industrial sector was quite appreciated during this period; it was even described as a winner of this pandemic. 2021 was a continuation of the 2020 trend regarding the online relocation of business activities. Online retail now needs a storage space, a logistics operator, and a good distribution.
By the end of Q3, 250,000 square meters of transactions had been recorded. In the last quarter, the number of contracts is accelerating, and I am convinced that we will reach 600,000 square meters throughout the year,” Marian Orzu, Managing Partner, Dunwell Industrial Brokerage said during Real Estate Forum 2021 organized by The Diplomat-Bucharest.
There is a race of developers to secure different positions and lands to come up with new products on the market. In addition, investment funds have turned their attention to the industrial sector and see the potential.
The office market in Iasi has grown rapidly after Iasi Airport became an international airport. From that moment on, direct flights to London, Tel Aviv, Paris, etc. appeared. Instead, the industrial market is moving more on wheels. We are talking here about trucks, and a connection of Moldova with the highway from the rest of Romania will certainly lead to the growth of the industrial market. Infrastructure is very important and attracts investment. The more highways we have, the more the development of the industrial sector in Romania will increase.
The yield is still very attractive on this market and varies between 7 and 9 percent depending on the product. They are attractive returns for investment funds entering the Romanian market, especially in direct comparison with Hungary.
Land prices have become prohibitive in some areas, making it difficult to develop new industrial and logistics spaces.
Demand for logistics space is beginning to reach over 20,000 square meters, which is quite rare in the past. Investors will continue to be attracted to this sector, which will become larger and larger. Certainly, the national stock will soon exceed 6 million square meters.”
Full recording of the event here: https://www.youtube.com/watch?v=mzVEjyAQc3Q