Romania could become the new "magnet" for industrial investments in the next decade in the context of strategic changes in the European economic landscape, according to a specialized analysis published earlier this week, Agerpres reported for BTA.
“Romania is not a peripheral market at all and has become a magnet for investments, attracting capital and large-scale projects thanks to a unique combination of factors - from infrastructure modernization to a global trend for the relocation of production. Despite the current economic challenges, mainly due to fiscal measures, the forecast for the horizon 2026 - 2030 is extremely positive“, says the analysis prepared by the consulting company “Frames“, which indicates that Romania has the potential to become a new strong center in the market for industrial warehouses and production facilities.
Statistics cited in the analysis show that the total availability of modern industrial and logistics space has almost doubled in recent years and reached around 7.5 million square meters, consolidating Romania's position as the third largest market of this type in Central and Eastern Europe after Poland and the Czech Republic.
„One of the strongest growth drivers is the relocation of production (nearshoring). International companies are looking for ways to shorten their supply chains and move factories closer to European markets, and Romania, with its skilled workforce and competitive prices, is a preferred destination. Initially driven by retail, fast-moving consumer goods (FMCG) and third-party logistics (3PL), which supported the growth of hypermarkets, demand is now increasingly diversified. This is reflected in the numbers: in the last two years, around a third of the demand for of industrial space was for manufacturing – a big jump compared to 10-15 percent in previous years“, experts note.
According to them, many of these manufacturing projects are purpose-built or even owner-occupied, meaning that manufacturing activity is under-reflected in rental statistics.
“At the same time, logistics and e-commerce remain strong: retailers (including food and FMCG and clothing) and logistics operators still account for around half of the leased space, ensuring continued demand for warehouse space and distribution centers“, the “Frames“ analysis points out.
Another increasingly clear trend is the sharp expansion of geographic distribution. Cities such as Timisoara and Arad, which benefit from their proximity to the EU borders, and Brasov and Sibiu with their industrial heritage, are have become “hotspots“, attracting a significant share of new investments.
According to forecasts, one of the regions with the highest potential is the (Romanian) Moldova region, especially with the construction of the A7 motorway, which has already included cities such as Iasi and Bacău on the radar of investors.
As for Bucharest, the construction of the A0 ring road is expected to stimulate the expansion of logistics areas in the surrounding areas, especially south of the city, where infrastructure was previously underdeveloped, experts say, and point to full accession to the Schengen area and the influx of European funds, especially through the National Recovery and Resilience Plan, as the main drivers of this boom.
“Frames“ forecasts indicate that Romania has the potential to attract investments of €10 billion in the development of logistics and industrial areas with both private and public funds.
The analysis of “Frames“ is based on official data on the dynamics of economic activity in the fields of logistics and industry, provided by the Ministry of Development, the National Statistical Institute, Eurostat and some expert companies.