In Romania, the potential of development in production remains high and the first signs of recovery are expected in the upcoming months, in line with European trends.
Most production units in Romania have resumed activity after a temporary slowdown and even halt in activity during lockdown to limit the spread of the coronavirus, and some of them are currently operating at reduced capacity, downsizing to fit lower demand in certain sectors.
Production could accelerate over the summer to compensate for the slowdown in the first months of the year, leading to a need for more flexible leasing contracts in case demand doesn’t recover at the same rate as production, Colliers said.
During regular years, production usually peaks in Romania in the period October-November, with 9% growth above the monthly average, while the second busiest production period is in spring. In the auto industry, for instance, March is generally the peak month in Romania, as well as Germany, Poland and the UK.
“The market is currently on stand-by but there is high potential for development in the production area due to better resources in terms of underutilized labor and labor costs sensibly lower compared with other countries in the region and almost on a par with China. A quick recovery in the economy would generate effervescence on the industrial and logistics property market in Romania, softening the long-term effects of a potential unfavorable evolution in the second half of 2020,” said Laurentiu Duica, partner and head of Industrial Agency at Colliers International.