Romania is strengthening its position among the leading industrial hubs in Central and Eastern Europe (CEE), driven by production relocation trends, growing investments in logistics, and increasing pressure to meet ESG standards, according to the latest edition of the report “ExCEEding Borders 2025: Navigating Strategic Opportunities and I&L Real Estate Market in CEE-14” published by Colliers. Romania accounts for approximately 11% of the modern leasable industrial stock in the CEE-6 region (Bulgaria, Czechia, Poland, Slovakia, Hungary, and Romania), a share that has remained broadly unchanged over the past five years, despite rapid expansion across all regional markets.

With a total stock of 7.5 million square metres of modern industrial and logistics space at the end of 2024 and over 370,000 square metres under construction, Romania is the third-largest market in the CEE-14 region, after Poland and Czechia, and continues to grow at a steady pace, supported by investments in manufacturing and infrastructure. At the same time, the country ranks among the regional leaders in the development of sustainable facilities, with an increasing number of green-certified projects and growing interest in modern, energy-efficient buildings.

“Beyond its advantageous geographic location and competitive costs, Romania is increasingly attracting companies looking to relocate or expand their production capacities closer to Western European markets. Strong demand for build-to-suit facilities and modern industrial parks -well-connected to infrastructure and offering access to skilled labour – is driving the market’s continued growth. We are seeing clear diversification in tenant demand, ranging from retailers and e-commerce players to manufacturers in strategic sectors such as automotive, electronics and pharmaceuticals, with growing interest in regional cities”, explains Victor Cosconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

While Bucharest still accounts for nearly half of Romania’s total stock of leasable industrial and logistics space, demand is rapidly expanding towards regional cities. This trend is supported by the ongoing development of the motorway network, proximity to western borders, and the availability of land for new developments. In 2024, total leasing activity exceeded 600,000 square metres, driven mainly by demand from production, retail, and e-commerce companies. This figure reflects only publicly reported transactions, with a significant number of direct leases remaining undisclosed and therefore not included in the total. Cluj-Napoca, Timișoara, Craiova, Ploiești and Oradea are attracting increasing levels of investment, particularly in build-to-suit facilities and light manufacturing units. At the same time, some of the largest leasing deals – exceeding 40,000 square metres – were recorded in projects located in Bucharest, Timișoara and Cluj.

The rapid expansion of online commerce continues to drive demand for modern distribution centres, with Romania ranking among the fastest-growing e-commerce markets in the region. The average vacancy rate remains stable at around 5%, while prime industrial rents range between 4.5 and 5 euro per square metre per month – a competitive level compared to more mature Central European markets.

Prime investment yields are estimated at around 7.75%, above the regional average, offering investors an attractive entry point into one of the most dynamic economies in Europe. With a growing portfolio of BREEAM- or LEED-certified projects, Romania remains among the regional leaders in sustainability, alongside Poland, Czechia and Slovakia. At the same time, compared to more developed markets, Romania remains structurally undersupplied relative to demand – particularly outside Bucharest – which creates strong foundations for future expansion.

Romania is increasingly being selected for nearshoring and reshoring projects. It ranks as the third most mentioned market in the region among investors seeking alternatives to Asia, following Poland and Hungary. According to Colliers consultants, nearly 50% of new industrial space enquiries in Romania in 2024 were related to manufacturing activities – marking a significant shift compared to previous years (primarily the pre-pandemic period), when logistics dominated demand.

“Romania benefits from its proximity to Western European markets, land availability, and low operating costs. Easier access to labour, particularly in regional cities, provides a competitive edge compared to more constrained markets such as Czechia or Slovakia. At the same time, Romania remains undersized in terms of the ratio between industrial stock and the size of its economy. With a stock of 7.5 million square metres and a population of nearly 19 million, the average is below 0.4 square metres per capita. By comparison, Poland exceeds 0.9 square metres per capita, while Czechia surpasses 1 square metre per capita. This gap highlights significant growth potential, especially in regional cities where demand is constantly diversifying”, notes Victor Cosconel, adding that Romania would need to add around 1 million square metres annually over the coming years to support its transition towards a modern industrial economy integrated into European production chains.

At regional level, the industrial and logistics sector is experiencing a notable resurgence, driven by renewed investor confidence. In the first quarter of 2025, investment volumes across the CEE-14 reached 800 million euro, marking a 143% increase compared to the same period in 2024. Poland remains the regional leader, with a stock exceeding 34 million square metres and a well-developed urban logistics market. Hungary is carving out a niche in battery production and electric vehicle components, while Czechia continues to attract sophisticated investments despite facing a labour shortage. In this context, Romania remains firmly on investors’ radar, standing out through its available land, expanding regional cities and increasingly diverse occupier mix – from manufacturers to retailers and e-commerce players.