Romania’s industrial and logistics real estate sector continued its growth trajectory in the first half of 2025, driven primarily by the rapid expansion of both traditional and online retail, according to Colliers’ latest market report. Demand for modern warehouses, regional hubs, and efficient logistics infrastructure has seen a notable rise, fuelled by the ongoing development of FMCG distribution networks and the acceleration of e-commerce.
More than 417,000 square metres of industrial space were leased in H1 2025, marking an over 20% increase compared to the same period in 2024. Retail- and consumer-driven sectors remained the primary demand driver, accounting for at least two thirds of overall leasing demand and further confirming retail’s central role in sustaining the wider logistics market. Meanwhile, among other things, the growing pressure for same-day or next-day deliveries is prompting retailers to expand their footprint by developing regional hubs not only near major urban centres but also in well-connected secondary cities across the country.
In the first half of 2025, approximately 120,000 square metres of modern retail space were delivered across Romania. Notable projects included the expansion of Mall Moldova in Iași (nearly 60,000 sqm), the expansion of Iulius Mall Suceava (over 16,500 sqm), and Funshop Park Ploiești (around 10,000 sqm), along with several other developments in smaller and mid-sized cities. An additional over 80,000 square metres are currently under construction, with completion expected in the second half of the year, although some projects may be postponed to 2026.
Although the pace of retail sales has slowed compared to the 2021 – 2024 period, retailer interest in expansion remains strong, particularly in medium and small-sized cities, as well as in the metropolitan areas of major urban centres, where retail parks continue to offer solid profitability. Discounters, FMCG chains, and international brands such as Pepco, Sinsay, Action, Bipa, TEDi, and Kik are actively expanding their footprint, while local FMCG players like Diana, Anabella, and La Cocos are expanding beyond their original regional focus.
As of 2024, Romania reached an actual individual consumption level of 88% of the EU average, the highest level among CEE countries, according to Eurostat. Actual individual consumption is defined as a volume-based indicator, rather than a spending one, so it tracks the overall quantity of goods purchased in a country. Expanding from an individual consumption of 55% of the EU average in 2010 to 88% last year, Romania has seen the fastest expansion in the EU. This offers enticing prospects for both the retail and logistics sectors, which still seem too small for the level of development of the overall economy, according to Colliers experts.
This ongoing expansion is driving the need for efficient warehouses and logistics hubs, sustaining strong demand in major cities such as Bucharest, Cluj-Napoca, Iași, and Timișoara. At the same time, developers and investors are increasingly eyeing secondary locations near future highways or bypass roads, anticipating rising land values. The completion of Bucharest’s southern ring road and improved connections from Craiova toward Bucharest and Constanța are significantly boosting the logistics appeal of southern regions. Romania has now surpassed 1,300 kilometers of high-speed roads, with another 1,400 kilometers under construction or planned – fueling investor interest in expanding toward the country’s southern and eastern cities.
“Even amid ongoing fiscal and geopolitical uncertainties, the outlook for Romania’s industrial and logistics sector remains strong. The country continues to hold a competitive edge in the region, particularly in terms of labor costs and availability. Infrastructure expansion is drawing attention to secondary cities, while growing interest from Asian investors, including companies from China, signals the potential for a medium-term industrial transformation. Areas with fast access to modern infrastructure, such as southern Bucharest, the Craiova–Constanța corridor, and the new A0 highway, pottentially a true game changer, are becoming increasingly attractive for logistics and industrial developments”,underlines Victor Cosconel, Partner | Head of Office & Industrial Agencies at Colliers.
Rents for modern industrial spaces remain stable across Romania’s major cities, ranging from €4.5 to €5 per square meter per month in Bucharest and between €3.8 and €4.5 in regional cities. The national average vacancy rate stands at 5.5%, though in certain submarkets, such as northern Bucharest, Cluj-Napoca, or Timișoara, it drops below 4%, reflecting limited supply and growing pressure on available space, particularly for large-scale developments.
In the first half of 2025, over 210,000 square meters of industrial and logistics space were delivered, with another 400,000 square meters currently under construction and scheduled for completion within the next year. At this pace, Romania’s modern industrial stock is likely to surpass the 8 million square meters very soon, reinforcing its position among the top regional markets. Retailers and various other consumer-driven tenants (notably logisticians working for various brands and products) generated the lion’s share of demand – at least two thirds of leasing demand. Meanwhile, manufacturing operations stood at around 13% of leasing demand in the first semester – a lower share compared to the recent average of around 25%, but still higher than the „norm” before the pandemic.
“Romania’s industrial and logistics market is holding its upward trajectory and is well-positioned to end 2025 with record-high activity or at least near record activity, both in leasing volumes and ongoing developments. Strong demand, especially from the retail sector, along with the expansion of infrastructure networks and competitive cost levels, is enhancing the appeal of major cities and emerging secondary markets. We expect this momentum to continue in the second half of the year, even as some relocation or expansion plans may be influenced by new fiscal measures. Romania remains firmly on the radar of major international investors and occupiers, increasingly drawn by its potential as a regional hub for production and distribution”, concludes Victor Cosconel, Partner | Head of Office & Industrial Agencies at Colliers.