The total modern stock reached almost 7.13 million sq.m at the end of Q2, as developers completed new projects with a total leasable area of ~104,000 sq. m across the country in H1 2024, among which 60,000 sq. m were delivered in Q2. The total development activity in H1 2024 slowed down when compared with H1 2023, when it accounted for 202,000 sq. m, while the estimated new supply for the next 18 months is at around 571,000 sq. m. The overall vacancy rate slightly decreased at a level of 4.8% while a further drop is expected by the end of the year, as a result of the limited developments on a speculative basis. The most significant deliveries were represented by the first phase of CTPark Arad West (22,600 sq. m) and, also by 13,000 sq. m completed by Alinso in Ploiesti.

In terms of demand, the Q2 leasing volume was around 203,600 sq. m, up from the 196,900 sq. m recorded in Q1. The leasing activity for the first half of the year accounted for 410,500 sq.m, representing a 25% drop when compared with H1 2023, as new demand had a share of 52% in the overall leasing volume in H1. The largest transaction closed in Q2 2024 was related to a 20,900 sq. m pre-lease by VAT within VGP Park Arad, followed by a 20,000 sq. m pre-lease by Deichmann in ELI Park 3 Bucharest.

PRICING: Stable rents

The prime headline rents in Bucharest and in Romania’s main industrial & logistics destinations remained flat at levels ranging between €4.30 – €4.70/ sq. m/ month in Q2 2024. No significant changes are expected in the coming period concerning the rental levels for existing projects, especially those that have a higher degree of vacancy, while an upward trend is predicted for the new developments due to the surging construction costs and land acquisition prices.

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