Romania continues to gain visibility on the European industrial and logistics investment map, at a time when companies are looking for competitive markets for manufacturing, warehousing and distribution. Two thirds of the European regions with the strongest profile for manufacturing activities are located in just four countries – Poland, Spain, Romania and France – according to the latest edition of the report “ExCEEding Borders: CEE & Iberia: Driving Europe’s Industrial Transformation”, published by Colliers. In Romania’s case, 36 counties, the equivalent of nearly 9 in 10, are included in the category of the most attractive regions for industrial investment.
With a total stock of more than 8 million square metres of modern industrial and logistics space at the beginning of 2026, of which nearly 3.9 million square metres are located in Bucharest, and around 450,000 square metres under construction nationwide, including 195,000 square metres in the Bucharest area, Romania is the third-largest market in the CEE-14 region, after Poland and the Czech Republic. The market continues to grow at a sustained pace, driven by investment in manufacturing, logistics and infrastructure. At the same time, Romania is among the regional markets where the development of modern, energy-efficient space is gaining increasing traction, amid growing demand for sustainable, green-certified buildings adapted to the increasingly stringent requirements of tenants, investors and lenders.
”Central and Eastern Europe is no longer seen merely as a region with growth potential, but is increasingly becoming a strategic hub for European manufacturing. We are already seeing this in discussions with investors, where Romania is appearing more and more frequently on the shortlist of companies rethinking their manufacturing, warehousing or distribution networks in Europe. Nearly 9 in 10 Romanian counties are included in the category of European regions attractive for industrial investment, supported by competitive costs, access to an industrial labour force and investment incentives. Infrastructure remains the main sensitive point, but progress is visible here as well. If the current pace continues, Romania has a real chance of reaching approximately 2,000 kilometres of motorway by the end of this decade, which would be more than double the level recorded in 2019”, explains Victor Coșconel, Partner at Colliers.
Demand reaches a new high, while manufacturing gains ground
The evolution is also visible in market data. In 2025, demand for industrial and logistics space in Romania reached a new high, with nearly 1 million square metres leased, almost double the level recorded in 2024. This growth took place in an uncertain economic context, highlighting the resilience of the market and Romania’s increasingly important role in the reorganisation of production and distribution chains across Europe.
At the same time, Colliers consultants note that the structure of demand is changing. Before the pandemic, transactions for manufacturing space accounted for a low single-digit share of total leasing activity, but interest in this segment has increased significantly in recent years. Manufacturing activities now account for at least 20% of the area leased annually, well above pre-2020 levels. In 2023-2024, the manufacturing segment even represented more than one third of leasing demand, confirming that interest in this type of space is no longer occasional, but reflects a structural shift in the market. The trend is supported by nearshoring, the improving balance between costs and productivity, and the expansion of road infrastructure, which is making more regional cities viable for industrial investment.
In parallel, Bucharest remains Romania’s main industrial market, although the capital’s share of total demand is gradually declining towards half of the total, or even below this level, as regional cities attract increasing investment. Western Romania, areas close to European transport corridors and cities with access to an industrial labour force are becoming increasingly relevant for manufacturing, logistics, distribution and build-to-suit projects.
”We are seeing a transition from a market dominated almost exclusively by logistics and distribution towards a more complex one, in which manufacturing, urban logistics, e-commerce and build-to-suit solutions contribute jointly to development. For Romania, the gap versus more mature markets should not be seen as a disadvantage, but as an opportunity. Among the major commercial real estate segments, industrial probably has the greatest long-term growth potential. Even if short-term fluctuations may occur, driven by economic or political uncertainty, the market fundamentals remain solid”, adds Victor Coșconel.
Investors are becoming more selective, but fundamentals remain solid
Romania also remains competitive in terms of market indicators. The vacancy rate stands at around 5%, while prime rents for modern industrial space range between EUR 4.5 and EUR 5 per square metre per month, an attractive level compared with more mature markets in the region. Investment yields for prime projects are estimated at around 7.75%, above the levels recorded in the Czech Republic or Slovakia, which continues to support investor interest in quality industrial assets, even during a period in which capital is becoming more selective and more focused on fundamentals.
At the regional level, investor interest in industrial and logistics space remains solid, but capital is becoming more selective and is increasingly targeting markets, assets and projects with clear fundamentals. The CEE-6 remains the core of the industrial and logistics market in Central and Eastern Europe, accounting for more than 80% of the modern stock in the wider region and most leasing activity. In total, modern stock is approaching 70 million square metres, while nearly 5 million square metres were under construction at the end of 2025. At the same time, the role of domestic and regional capital is increasing, already accounting for 58% of total investment volumes, a sign that the market is maturing and becoming less dependent on external capital cycles. Developers are, however, more cautious, and new projects are increasingly supported by pre-lets or build-to-suit demand, indicating that the market is entering a phase of stabilisation, rather than correction.
This stabilisation does not mean, however, that the market’s transformation is slowing. The Colliers report shows that the differences are becoming increasingly clear between modern, energy-efficient buildings aligned with ESG standards and older stock. Quality assets, with strong energy performance, international certifications and solutions such as rooftop photovoltaic panels, attract higher demand, have better occupancy rates and remain in investors’ focus. In Romania, ESG requirements are already increasingly present in leasing and investment processes, while energy efficiency is treated as an essential condition by banks, investors and international tenants.
Europe’s new industrial map: costs, corridors and ESG
Another important element highlighted by the report is Europe’s new industrial geography. A market’s attractiveness is no longer defined only by national borders, but also by the corridors connecting manufacturing, suppliers, infrastructure and the labour force. One of the most relevant examples is the electric vehicle and electronics corridor in Central and Eastern Europe, which starts in northern Poland, crosses the Czech-Slovak-Hungarian industrial area and reaches western Romania and Bulgaria. This corridor concentrates one of the strongest industrial opportunity zones in the European Union, supported by competitive costs, investment incentives, supplier networks and industrial tradition.
For Romania, the report highlights a competitive profile particularly in terms of costs, incentives and labour force. The country has one of the highest scores in the region for incentives and one of the most attractive cost profiles in the European Union, while the industrial labour force remains an important advantage. At the same time, lower scores for infrastructure, scale and industrial development indicate the areas where progress could support the next stage of growth.
”Location decisions are no longer made only at the country level, but at the level of region, city, industrial corridor and supplier ecosystem. For companies seeking labour-intensive manufacturing capacity, Central and Eastern Europe remains one of the most attractive options in Europe. For Romania, the key challenge in the coming years is to turn its cost advantage into a structural advantage, through better infrastructure, predictability, a skilled labour force and modern industrial parks capable of supporting higher value-added investment”, says Victor Coșconel, Partner at Colliers.
Romania, between a window of opportunity and growth constraints
For companies, the current moment is also important from the perspective of available incentives. The report notes that the current European regional aid map is valid until the end of 2027, while the next cycle could bring a reduction in aid intensity in regions that have recovered part of their development gaps. For this reason, projects planned for the coming years need to take into account not only costs and land availability, but also the timing of accessing public support.
Over the medium term, Colliers consultants estimate that Romania could reach a stock of 10-12 million square metres of modern industrial and logistics space by the end of the decade, if current trends continue. The pace of growth will, however, depend on the market’s ability to respond to increasingly important constraints: access to road and rail infrastructure, the availability of well-connected land, the capacity of energy networks, access to water in certain industrial areas, access to labour and the predictability of the economic and fiscal framework.
Romania therefore has the chance to consolidate its role as a regional industrial hub, not only for logistics and distribution, but also for light manufacturing, automotive components, electronics, aerospace, e-commerce and higher value-added activities. For investors and developers, the local market remains one of the most interesting in the region precisely because it still has a significant gap to close compared with more developed neighbouring economies. For occupiers, Romania offers a hard-to-ignore combination of competitive costs, geographical position, access to Western European markets and regional development potential.
The report “ExCEEding Borders: CEE & Iberia: Driving Europe’s Industrial Transformation”, published by Colliers, is based on an assessment of all approximately 1,160 NUTS-3 regions in the European Union, using seven criteria relevant to industrial location decisions: labour force, scale, costs, incentives, business environment, industrial development and accessibility.
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