"Romania's potential (or sustainable) economic growth is currently around 4% of the EU average, below 2%, or around 3% for the countries of the region, according to the European Commission. These figures can provide a reason for optimism for Romania's long-term economy, especially given the significant potential that can be unlocked through relatively simple reforms, such as improving infrastructure. This context will also favor the good development of the long-term real estate sector", says Silviu Pop, Head of Research at Colliers International Romania.
Apart from the Baltic and Irish economies, Romania has been the most successful case in the EU over the past decade in terms of GDP growth per capita. Today, the economy is no longer relying on excessive consumption, based on bank loans, but on the one supported by wages. Also, the national economy has turned into an economy that depends more on services (including high complexity).
The inventory of industrial space grew massively during the pre-crisis period (almost 3 times 2007-2008, at 0.9 million sq m near Bucharest).
An interesting change over those years is that outsourcing to logistics has become the dominant component of the market (over 50% of total demand versus 38% in 2007); at the same time, many of the big players have or are currently developing their own logistics network. This is the only real estate segment that, as far as deliveries are concerned, is as dynamic as before the crisis.
Beyond the weak administrative capacity of the state, Romania should continue to grow, as it still benefits from one of the biggest differences in labor productivity and labor costs in Eastern Europe.
Internal migration will be another important factor in real estate market trends: people in cities such as Cluj-Napoca, Timisoara, Iasi, Braşov or Sibiu should increase a lot in the coming years. Consequently, all real estate segments have the chance to improve in terms of quantity (traded / leased areas) and qualitative (investment returns).
For the industrial market, experts expect the current stock of 3.8 million square meters to expand to over 7 million square meters by the beginning of 2030, although it is difficult to assess what impact the technological changes will have over the logisitcs activity. (source: businesscover.ro)