The key sectors that have chosen this area of Europe are the automotive, machinery and electric and electronic product manufacturing, as well as consumer goods and textiles manufacturing ones.
CEE countries are close to major consumption markets and hence benefit from lower transport costs and shorter transport times. Moreover, given their EU membership or their being part of free trade agreements between countries outside the EU, moving freight between these countries means low or even zero costs and transport limitations,” say the report authors.
Additionally, these countries are well-connected to other European market through a series of transport routes. These countries have already proved to be attractive and in recent years demand for logistic and industrial spaces has boomed.
“We’ve already witnessed a significant increase in demand for such spaces as in 2022 production firms contracted almost 10 million square meters of industrial spaces across Europe, up 27% from 2017,” says Andrei Brinzea, Partner Land & Industrial Cushman & Wakefield Echinox.
According to him, in Romania demand from the part of production companies in 2022 rose by almost 40%.
“The relocation of production activities to Europe will further boost demand for industrial spaces in certain locations, both for production and logistic activities. These companies will focus on newly built facilities, but will also create opportunities to improve existing projects. Romania has a competitive edge in terms of costs, but state aid and the incentives system also play quite an important role when companies choose the country where they want to open a new production center,” concludes Andrei Brinzea.
(English version by Catalina Apostoiu)