Deliveries planned for this year are set to top last year’s 890,000 sqm of modern stock.
“Considering the unprecedented health crisis, 2020 was a reasonably good year for the Romanian real estate market. If office and retail projects, which entail large gatherings of people, were directly affected by pandemic restrictions and are still waiting to return to normal, the industrial sector had a record year in terms of transactions and deliveries,” said Alexandru David, Head of Research, JLL Romania.
Development continues to be driven by the logistics and industrial sector, where projects in the pipeline amount to over 670,000 sqm countrywide, or 67% of the total. Industrial stock is set to exceed 5.7 million sqm this year from 5.05 million sqm at the end of 2020.
Expected deliveries include expansions of logistical parks operated by CTP, two new parks developed by WDP and one project by local developer Element Development.
On the office market in Bucharest, developers are expected to deliver 252,000 sqm this year, compared with 155,200 sqm delivered in 2020.
Modern office stock in Bucharest is set to reach 3.2 million sqm by the end of this year. Nearly 43% of this year’s deliveries are located in the center-west area, 16% in the central area and 12% in the city’s central business district.
Expected deliveries include J8 Office Park, developed by Portland Trust the north-west Expozitiei area (45,700 sqm), the first stage of One Cotroceni Park, developed by One United Properties (45,000 sqm) and Sema Offices London & Oslo (34,500 sqm), both locate din the center-west area.
On the retail market, the delivery pipeline amounts to 160,000 sqm after deliveries of 142,200 sqm in 2020. Modern retail stock in Romania is set to reach 3.86 million sqm by the end of 2021.
Of expected retail deliveries, 18% will be in Bucharest. Projects include Colosseum Mall (16,500 sqm) in north-west Bucharest and the first stage of Fashion House Outlet Village Cernica (13,000 sqm), developed by Liebrecht & wooD in the eastern part of the city.
Outside Bucharest, modern retail spaces under construction consist mainly of retail parks and shopping centers with lettable areas of under 20,000 sqm. The biggest project expected is Prahova Value Center Ploiesti, developed by Prime Kapital and MAS Real Estate.