The Romanian real estate market presents a multitude of advantages: an abundance of land available for development, high tenant demand, and attractive yields for investors. With a projected GDP growth of 3.5% this year, Romania's economy offers a stable environment for investment. Additionally, its 19 million population with rising incomes represents a compelling customer base for many companies.
"Romania has made remarkable progress in recent years," commented Jakub Holec, CEO of 108 REAL ESTATE. "Its strong pro-European orientation is evident in its infrastructure and day-to-day operations. The construction permitting process is streamlined, and there is a clear emphasis on quality, efficiency, and sustainability. I believe the real estate landscape is a testament to the country's successful transformation, attracting an increasing number of real estate players."
To lead the Romanian branch, 108 REAL ESTATE has appointed Victor Rachita, a seasoned professional with 23 years of experience in the Romanian real estate market.
This expansion strengthens 108 REAL ESTATE's presence in Central and Eastern Europe. In countries where it does not have its own office, the company operates through an alliance partnership with BNP Paribas Real Estate. This extensive network enables 108 REAL ESTATE to guide its clients, from the Atlantic Ocean to the Black Sea.
The Bucharest branch of 108 REAL ESTATE will focus primarily on industrial real estate. "The Romanian market offers numerous growth opportunities in terms of the supply of new, modern logistics and production spaces," stated Victor Rachita, Managing Partner of 108 REAL ESTATE in Romania.
"In the last three to four years, demand has significantly outpaced the completion of new spaces." The annual net realized demand hovers around 1 million square meters, and vacancy rates dropped below 5% last year. However, prime rents have increased around major cities such as Bucharest, Cluj, Timisoara, the port of Constanta, and the popular city of Brasov, exceeding €4.5/sq m/month.
Romania's current capacity of modern industrial space is over 7 million square meters. By comparison, the Czech Republic has over 12 million sq m. Considering the significant investments in the highway and railway networks, the demand for modern industrial space is expected to continue growing. Romania has numerous brownfields, making revitalization or construction feasible in highly attractive locations around major urban areas.
Developers may also be drawn to the current yield, which has been the highest in Central and Eastern Europe for distribution centers since 2018, close to 8%. However, similar to other European countries, the investment market in Romania experienced a decline last year to a volume of around €500 million in closed transactions due to high prices, inflation, and more complex bank financing conditions.
The Romanian market is home to active international developers (CTP, WDP, P3, VGP, Logicor, and others), as well as local developers and influential domestic companies (Element, Olympian). Tenants include renowned companies and brands such as Ericsson, Pirelli, Michelin, Siemens, Packeta, Lidl, Leoni, 3PL European companies – DB Schenker, DSV, Yusen Logistics, Kuhne Nagel, Gebruder Weiss, and Raben.
108 REAL ESTATE is a real estate consultancy that has focused exclusively on commercial real estate since 2009. Since its establishment, “108” has sold over 10 million square metres on the Czech, Slovak and Hungarian markets. Clients approach 108 REAL ESTATE to arrange lettings and sales, provide investment advice, and market and manage development projects. On the back of a strategic acquisition in 2021, 108 REAL ESTATE became BNP Paribas Real Estate’s exclusive alliance partner for the Czech Republic and Slovakia.
