The real estate market in Romania registered last year the fastest growth in the last 5-7 years. Developers have intensified their activity in all sectors of real estate, taking advantage of the good market situation and growing demand.
New supply reached 5-year record levels, registering growth of 11% for the residential market, + 39% for shopping centres new supply, while the area of offices completed in Bucharest was 4 times larger than in 2015.
Industrial sector continued on an positive trend, being witnessed further improvements in market fundamentals. There was registered a strong leasing activity and a record volume of new supply delivered at national level, while average rents saw a marginal growth.
Development activity accelerated last year to a record of 400,000 sq mGLA of new speculative space completed at national level. In addition, the owner-occupied stock increased by more than 125,000 sqmof newspace.
Bucharest’s industrial stock increased last year by 190,000 sq m GLA, a volume higher than all completions done during 2009-2015 when development blocked. Major deliveries were also registered in Cluj-Napoca (55,000 sq m), Brasov (30,000 sq m), Braila (27,200 sq m), Timisoara (20,000 sqm)and Ploiesti (20,000 sq m).
Demand counted on 410,000 sqmof major leases at national level. Around 70% of the area was leased for logistics, with the rest having a manufacturing destination and being dominated by demand coming from automotive car-parts suppliers, representing20%of the total volume of major leases.
The Capital concentrated almost 55% of demand, with major deals totaling 220,000 sq m. Take-up doubled in the last two years and increased by 7% in 2016. Bucharest remains specialized on logistics, reachingmore than90%of take-up.
Timisoara is the 2 largest market after Bucharest, with major leases of 450,000 sqmduring the last 7 years, 55% for logistics and 45% for manufacturing (automotive, electronics, equipments). Take-up grewby35%in 2016, to 75,000 sq m.