Insight

2014 / Q1 2015 update

Romania property
market report

rics.org

2014 / Q1 2015 update Romania property market report

Disclaimer: This publication is produced by the authors, with the administrative

and design assistance of RICS (Royal Institution of Chartered Surveyors). The views
expressed herein can in no way be taken to reflect the official opinion of RICS, nor do they
necessarily reflect RICS policy and position.

Insight

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Contents
1

Economic Outlook..................................................................... 1

Residential Market.................................................................... 3

Retail Market................................................................................ 8

Industrial Market...................................................................... 10

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3 Office Market............................................................................... 6

Acknowledgements.......................................................................... 12

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2014 / Q1 2015 update Romania property market report

1. Economic Outlook
Eurozone
The Eurozone economies have had a positive evolution
overall since mid-2013, even though the turbulence
affecting the region has not completely passed.
Nevertheless, the pace of recovery is rather lower than
expectations and therefore concerns over the medium
and long term evolution of the regional economies
persist. Fears concerning potential deflation in the
EU are often raised as inflation in some of the key
economies entered into the negative zone.
The weakening of the European currency has helped
exporters, while falling energy prices have boosted
economic demand. Conversely, the excessive public
debt of several European economies, growing political
risks coming from the Eastern border of the EU and
the unsolved situation in Greece are the most quoted
reasons for worries.
Lithuania became the 19th country to adopt the
Euro currency on the first day of 2015 in an effort to
consolidate its pro-European orientation, despite the
tense regional climate in relation to Russia.
The austerity measures adopted by most of the
European countries during 2010 - 2012 which included
tax increases, cuts in government expenditures,
budgetary lay-offs and reduced investment have
contributed to rising unemployment rates and negative
reactions from the affected populations. As the global
outlook improves, an easing of these measures is
expected.
Confidence in European real estate markets has
increased over the last 18 months with growing
investment volumes in most countries, improving
occupancy rates and a tendency toward yield
compression.

Romania
The Romanian economy had an encouraging evolution
in 2014 thanks to good industrial production and
growing exports. This represents a continuation of the
2013 trend and provides good prospects for sustainable
evolution in the future. Economists are forecasting a 2.5
2.8% growth in GDP in 2015.

Insight

Romania - evolution of key economic indicators

2010

2011

2012

2013

124.4

131.3

132

140.6

Real GDP (yoy)

-0.8

1.1

0.6

3.4

3.0

Public Debt
(% of GDP)

30.5

34.7

38.2

39.3

39.7

Exports
( bn)

37.4

45.3

45.1

49.6

52.5

Imports
( bn)

46.9

54.9

54.7

55.3

58.5

Inflation %

6.09

5.8

3.3

3,98

1,07

Unemployment
rate %

7.3

7.4

7.0

7.3

6.4*

GDP ( bn)

2014

Source: INSSE, European Commission, Focus Economics

* as of December 2014

Exports recorded strong performances in both 2013

(49.6 bn) and 2014 (52.5 bn) with a similar evolution
expected in 2015. Cereal exports have increased by
roughly 15% year on year as the economic sanctions
imposed on Russia favoured the EU markets. Stronger
performances are yet to be expected for 2015 2016
as investments are made in increasing land productivity
and storage capacity. Despite the sectors strong
performance, local banks are reluctant to finance the
agribusiness sector which is considered risky and
volatile, especially as much agricultural land is very
fragmented.
The automotive industry remains a key export driver as
many car part manufacturers have decided to locate or
expand their business in Romania, thus benefiting from
competitive labour costs and its strategic geographical
position. International players including Continental,
Drxlmaier, Michelin, Yazaki, Leoni, Grupo Antolin,
Kimball Electronics have extended their facilities in
Romania.
In a European context the export volumes recorded
by the Romanian economy (which is the largest in the
South Eastern Europe) are still well below their potential
(e.g. below smaller countries like Hungary or Czech
Republic). Currently Romanian exports are based on

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large volumes of products with limited added-value. In addition, Romania continues to

have severe problems in absorbing the available European Funds despite numerous
criticisms from the European Commission, World Bank and not least from local
economic players.
The local real estate market has consolidated over the last 12 months as the gap
between owner/landlord asking prices and rents and the expectations of buyer/tenant
has narrowed. We have noticed stable levels of prime yields, rents and occupancy
levels and growing investment activity.

Outlook
For the coming months we should witness an easing of austerity measures and a
consolidation of the banking sector. Additional depreciation of the euro is anticipated
by economists. On these grounds a sustainable positive trend of the European
economies, including Romania, is likely to be observed. The political evolution in the
eastern part of Europe will remain a source of concern with implications which are hard
to predict.
For Romania, positive progress is expected, mainly on the grounds of domestic
demand, consolidated industrial production and agricultural performance.
There are opportunities available, such as the proper management and absorption of
EU structural funds or key investments in infrastructure (e.g. extending the highways
network, increasing the capacity of Constanta harbour) which could boost the local
economy if implemented.
The anti-corruption measures which were strongly visible in the last year might and
should finally impact on economic performance although it is hard to estimate the
effect of this process in real terms.

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2014 / Q1 2015 update Romania property market report

2. Residential Market
The residential market has recorded a positive evolution in the last 12 months in terms
of new building permits, number of delivered units and concluded transactions. If during
2009 2012 the market was unanimous described as a buyers market we see today in
the main cities a more stable market on which competitive projects are being sold during
construction or soon after, at prices which leave little room for negotiation.
Most projects have less than 100 units and are developed primarily on equity. The typical
buyers are local end users as the Investments Funds which were buying large residential
portfolios off plan in 2007-2008 are not considering to invest on the market.
The current evolution of the segment appears to be a healthy and sustainable one, as it
is not based on speculative elements which were distorting the market during the boom
period.
Building Permits Following the 2006-2008 period, the development of new buildings
has dropped significantly by circa 33% over 2 years (2008 2010). This was a natural
contraction reaction of the market which was facing a severe recession.
From 2010 until 2012 the development of new residential buildings still suffered a
negative adjustment although at a considerably slower pace than in the previous years.
At this point we can observe a switch in the trend in 2013 when the number of new
building permits increased by 1.8% year on year. This positive progress continued in
2014 with a 2.7% increase year on year.
In order to have the full picture, one must look also at the number of square metres that
were authorised to be built in each year. We can observe that the evolution in 2013 and
2014 was positive.
Yet, a much more interesting aspect needs to be observed: in 2008 the authorised area
in terms of sq m was of 19,362,342 for a number of 69,011 building permits which
means an average of 281 sq m / building permit. In 2014 this average was only 205
sq m / building permit which is an indicator of the fact that smaller schemes are being
authorised and developed at present.

Authorized SQM

Authorized SQM

25,000,000
19,362,342
20,000,000
15,642,652
15,000,000

10,000,000

8,384,049

12,188,843

8,992,515

10,509,558
8,678,192

8,040,574

7,945,251

5,000,000

2006

2007

2008

Source: INSSE data processed by the authors

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2009

2010

2011

2012

2013

2014

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The most targeted regions for new residential developments remain to be Bucharest /
Ilfov, Cluj, Constanta, Timis, Iasi and Brasov.

No of residential sq m based on building permits

734
813
823

Brasov

1,779
1,883
1,969

Iasi
Cluj

1,143

1,488
1,416
2014

1,931
1,843
1,992

Timis

2013

Ilfov

4,175

3,375

2012

5,355

827
765
750

Bucharest

1,584
1,600
1,841

Constanta
0

1,000

2,000

3,000

4,000

5,000

6,000

Source: INSSE data processed by the authors

No. of residential sq m based on new building permits / counties

Prices and Affordability

Prices have stabilised since 2013 and a slightly positive trend is visible for schemes
that benefit from good characteristics and location. Current prices are at the level of the
second quarter of 2006, just before the price surge.
Average
prices /
sq m

Bucharest

Cluj

Timisoara

Brasov

Iasi

Constanta

Central
locations

1,100 1,200

900 950

850 - 900

800 - 850

800 - 850

900 - 950

Secondary
locations

900 - 1,000

800-850

750 - 800

750 - 800

750 - 800

800-850

The above listed values are averages of both new and old stock (apartments) and are
excluding the prime locations.
There was a visible increase in mortgage loans taken on by the population over the last
two years of +10% in 2013 and +15% in 2014. The preferred financing programme
remains Prima Casa.
The loans granted in the local currency recorded an increase of 90% year on year in
2013 and a remarkable increase of 227% year on year in 2014 due to the NBRs policy
of discouraging loans issued in a foreign currency.

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2014 / Q1 2015 update Romania property market report

In autumn 2014 the Prima Casa government programme saw a high increase
compared to the same period from 2013 (52% year on year increase) with the total loan
amount increasing from 174 mn to 278 mn (59% year on year increase).

Mortgage loans amount/currency

RON 50,000,000
RON 45,000,000
RON 40,000,000
RON 35,000,000
RON 30,000,000
Other currency

RON 25,000,000

EUR
RON

RON 20,000,000
RON 15,000,000
RON 10,000,000
RON 5,000,000
RON 0

2012

2013

2014

Source: information from NBR processed by the authors.

Demand
For affordability reasons the most sought after properties remain studios, followed by
two and three room apartments. Only 6% of the loans issued through the Prima Casa
programme are targeting apartments with more than four rooms.

Type of apartment bought

6%

11%
Studio

30%

2 rooms
3 rooms
51%

4+ rooms

The vast majority of loans granted through the Prima Casa programme are below
50,000. It is evident that most buyers are targeting units that can fit into the Prima Casa
Programme, which in general refers to units with average areas of 60 sq m net internal
area and acquisition prices of up to 60,000.

Value of units bought through Prima Casa

24%

32%

< 30,000 EUR

30,000 EUR - 40,000 EUR
40,000 EUR - 50,000 EUR

19%

> 50,000 EUR

25%

Source: FNGCIMM

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3. Office Market
The office segment remained active throughout 2014
continuing and exceeding the trend set in 2013.
Occupancy rates improved and rents were relatively
stable as new spaces were delivered on the market.
The segment remains highly appealing for institutional
investors looking to invest in prime assets, although
the supply is still scarce. The owners of prime office
buildings prefer not to sell as there are few investment
alternatives that could generate the same kind of
returns with similar risk rates.
Bucharest remains the most active market in the office
sector followed by Cluj Napoca, Iasi Timisoara and
Brasov.
The total existing stock of modern office space in
Bucharest currently stands at 2.06 mn sq m (gross
leasable area, class A and B) of which circa 140,000 sq
m was delivered in 2014. An additional 120,000 sq m of
office space is expected to be delivered by the end of
2015.

Rents
The headline rental levels for prime offices in Bucharest
have remained stable at around 18.5/sq m/month. In
the central business districts, monthly rents are in the
range of 16-18 /sq m (Piata Victoriei) and 14-16 /
sq m (Calea Floreasca/Barbu Vacarescu). In Dimitrie
Pompeiu area the rents are slightly lower, in the range
of 11-13/sq m. In these areas the vacancy rates are
below 10%. Further out, in Pipera area (away from the
immediate access to the subway) the rents are lower
(8-10/sq m) and the vacancy rates are higher, closer to
20%.

City

Prime office headline

rents /sq m

Bucharest

16-18.5

Cluj Napoca

13-14.5

Iasi

12.5-14

Timisoara

12-14

Brasov

11-12

Leasing Activity
2014 saw the highest level of take-up recorded on
the local market, with total transaction volumes over
300,000 sq m, representing a 22% increase year
on year. The number of pre-leasing contracts also
registered a record high and tripled in volume compared
with 2013. This also reflects in increased development
activity on the market. Conversely, the number of
renegotiation & renewal transactions dropped by 27%.
Approximately 270,000 sq m of office space was leased
in new contracts (excluding renegotiations & renewals)
in 2014. This figure will most likely be exceeded in 2015,
as more than 25,000 sq m was already leased in the
first months of the year.

The western part of the city is becoming increasingly

appealing for IT&C and outsourcing companies. Here,
rents are in the range of 14-16 /sq m per mth and
vacancy rates are below 10%.
In other parts of the city, rental levels stand below 12/
sq m, whereas vacancy rates are above 20%.
As a general market practice, landlords of modern office
buildings offer both a fit-out contribution and a rent free
period.
Service charges remain largely in the range of 3.5-4.5/
sq m per mth. In the case of prime properties the rents
are triple net (service charge covers the property tax,
insurance and maintenance).

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2014 / Q1 2015 update Romania property market report

Top leases concluded in 2014 (leased areas > 2,500 sq m; new contracts only)
Tenant

Tenant field

Building

Area - sq m

Q1

Intesa SanPaolo
Bank

banking

Art Business Center 7 /

Bucharest

3,500

Q1

Endava*

IT&C

AFI Park 3 / Bucharest

4,500

Q1

Schneider
Electric

services

Green Court Bucharest

3,100

Q1

Huawei

IT&C

Bucharest One

2,500

Q1

Vodafone *

IT&C

Bucharest One

16,000

Q2

Yardi

services

The Office / Cluj Napoca

3,000

Q2

Orange
Romania

IT&C

Green Court / Bucharest

13,700

Q2

Allianz

insurance

Floreasca Park / Bucharest

3,500
3,000

Q2

Siemens

IT&C

Liberty Technology Park / Cluj

Napoca

Q2

Kelloggs

FMCG

Floreasca Park / Bucharest

2,500
4,000

Q3

DB Schenker*

logistics

Hermes Business Campus/

Bucharest

Q3

Romanian
International
Bank

banking

Hermes Business Campus /

Bucharest

3,500

Q3

Genpact

outsourcing

United Business Center /

Bucharest

3,000

Q3

Telus

outsourcing

AFI Park 3 / Bucharest

6,000

Q4

Telekom
Romania *

IT&C

Globalworth Campus /
Bucharest

25,000

Q4

Ponderas

Medical &
Pharma

Art Business Center 7

8,000

Q4

1&1 Internet
Development

IT&C

Sky Tower

3,473

Q4

Lowe Romania

Media &
Advertising

Metropolis Center Bravo II

2,650

* Prelease

The IT&C sector, together with outsourcing companies accounted for more than 40%
of newly rented spaces in 2014, which is an increase compared with 2013 when this
sector accounted for circa. 35% of the total take-up.

Investment Activity
The most appealing real estate investment product today in Romania appears to be
prime office buildings offering good covenant strengths (blue chip tenants, long-term
leases ideally with no break options, good technical specifications). Yet, there are still few
properties available for sale that can meet these requirements.
Two key office transactions were closed by Globalworth Real Estate in 2014. One is the
acquisition of Nusco Tower for 46 mn and the second is the acquisition of Green Court
One for 44 mn. The prime yield currently stands at 8%-8.25%.

Outlook
A positive evolution of the sector is expected for the coming months, including the level of
take-up, enhanced occupancy rates and further stabilisation of the current market rents.

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4. Retail Market
Retailers continued to expand their networks, although
at a slower pace compared to 2013. Carrefour, Kaufland,
Lidl, Mega Image and Penny Market remained the most
active players over the last 12 months with a positive
outlook for the coming period.
Conversely, the stock of shopping centrescentres
and retail parks reached a record low with only three
schemes delivered: Shopping City Trgu-Jiu (27,000 sq
m), Vulcan Shopping Center, Bucharest (25,000 sq m)
and Auchan Tricodava (20,000 sq m).
We notice therefore the expansion and consolidation of
the local operation of several key players and a more
reserved attitude from developers.
Nevertheless the new supply announced for 2015 will
far exceed the performance of 2014, with Phase I of
Coresi Shopping Resort (Brasov) already delivered in
March (45,000 sq m), Mega Mall (Bucharest) soon to
be completed (70,000 sq m) and also the extension of
several existing shopping centres.

DIY segment
The DIY market was particularly affected by turbulence
in the last couple of years with the Bricostore operations
being sold in 2013 to British group Kingfisher for 13 mn. In
2014 it was the turn of the Austrian group BauMax and the
German groups Praktiker and OBI to face a similar situation.
Thus, BauMax renounced its local operations, which were
taken over by the French DIY retailer Leroy Merlin in a deal
estimated at circa 17 mn. Praktiker was taken over by
Search Chemicals, a company controlled by the Turkish
businessman Omer Susli and will continue to operate under
Praktiker brand. OBI closed its local units with some of the
spaces left vacant by the German group being leased by
Jumbo, a Greek retailer of toys and decorations.

The general environment is therefore very competitive,

which is compelling developers to find creative solutions
to increase foot fall to their schemes.
In addition to the already mentioned future Mega Mall
shopping centre located in Bucharest, new projects in
pipeline for 2015/2016 are:
Park Lake Plaza, the shopping centre developed in
Bucharest by Sonae Sierra and Caelum Development is
planned to be delivered in 2016 and will have a GLA of
67,000 sq m;
Timisoara Shopping City, developed by NEPI and
anchored by Dedeman and Carrefour will have its first
phase of 55,700 sq m delivered in 2016;
Piatra Neamt, a new retail scheme is developed by
NEPI on a site acquired in 2014. The announced GLA of
this scheme is 29,000 sq m and the delivery date is the
beginning of 2016;
Veranda Mall, a new project developed by Prodplast
Imobiliare in the Eastern part of Bucharest will add
approximately 25,000 sq m of retail space. The scheme
is planned to be delivered in 2016;

At the European level Kingfisher discussed a potential

takeover of the French chain, Mr. Bicolage, also present
in Romania. The deal however was dropped this March.

Promenda Mall - extension, Bucharest, the shopping

centre will be extended with circa 25,000 sq m;
currently planning needs to be obtained (NEPI);

Existing Stock & Pipeline

City Park Constanta extension of the shopping

centrewith an additional area of 20,000 sq m (NEPI),
planned to be delivered in 2015;

Retail expansion has been quite aggressive over the

past few years, especially if we take into account that
purchasing power is still very low in Romania. For this
reason some cities are facing oversupply and as a direct
consequence there are projects which are struggling to
survive while others have declared bankruptcy.
Shopping centres and retail parks only represent 2.6
million sq m at a national level, of which close to 0.9
million sq m are located in Bucharest.

Deva Shopping City extension of 10,600 sq m

planned to be delivered in 2015;
Severin Shopping City extension of 9,700 sq m
planned to be delivered in 2015;
Pipera Plaza, the first phase (7,500 sq m GLA) of
a new small retail scheme in the north of Bucharest,
planned to be delivered in 2015.

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2014 / Q1 2015 update Romania property market report

Rents
For schemes which are performing well, rents were relatively stable over the last 18 months.

Retail spaces average rent / sq m/ month

Prime cities (Bucharest)

Prime regional cities

Type

Size
(GLA m)

Prime
shopping
centre

Secondary
shopping
centre

Shopping centres

Food Anchors

>5,000

12-14

8-12

7-10

5-8

Anchors

>1,500

10-12

8-10

8-10

6-9

Large Size Units

700-1500

14-18

12-16

10-14

7-10

Medium Size
Units

250-700

25-35

15-20

12-20

12-15

Standard Unit

50 - 250

40-60

25-35

20-35

15-25

Food Court

40-150

20-25

10-20

10-14

n/a

Leisure &
Entertainment

1,5003,000

8-12

5-10

8-12

4-8

Retail
Park

Investment Transactions
The key retail investment transactions of 2014 were the acquisition of 12 retail schemes
anchored by Auchan hypermarkets for approximately 260 mn and the acquisition of
Promenada shopping centre by NEPI from Raiffeisen Evolution for 148 mn. Previously
(December 2013) NEPI acquired City Park Constanta shopping centre from Neocity in
an 81 mn transaction.
Several retail schemes with a poorer market position changed owners in 2014: Equest
Balkan Properties sold Vitantis Bucharest (36,000 sq m) to Revetas Capital and Moldova
Mall (9,000 sq m) to Afaredo Limited (Gheorghe Iaciu), Cometex (Dan Ostahie) sold
Aurora Mall Buzau and a smaller retail scheme in Alba Iulia to NEPI. This trend is likely
to be visible in 2015, with two new transactions already recorded until March: GTC sold
Galeria Buzau (14,000 sq m) to Eurosting and Pradera sold Galeria Comerciala Militari
(3,600 sq m) to Carrefour. Other transactions on the retail market include:
The acquisition of the former OBI unit located in Sibiu by the Germany DIY chain
Hornbach, from CA Immo and Oasis;
Jumbo bought the unit which it anchors in Pitesti from Rolast for approximately 5 mn;
Carrefour bought its unit in the future Park Lake Plaza for approximately 15 mn.

Outlook
The sector will remain active and an increase in transactional activity is anticipated for
the coming months.
Beside investors looking at Romanian market, international retailers showed interest in
opening stores either directly or via franchise.
For instance, in 2015 retailers like Debenhams will return to the market with a different
franchise partner, Pepco will open a large network of stores, Spanish sport retailer
Decimas, luxury brand Marc Cain, LPP group announced aggressive expansion and
there are other large international retailers to come.

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5. Industrial & Logistic Market

Logistics
The market for logistics and industrial spaces was very
active in 2014 with many pre-leases, leases, renewals
and transactions announced throughout the year. The
total logistics area leased in 2014 is in the region of
200,000 sq m, out of which pre-leases represented
circa 80,000 sq m. Automotive companies and the
FMCG companies were the most active players and
roughly 80% of the leasing contracts were concluded
by them.
Occupancy rates and rent levels are stable. At the same
time new supply remains relatively low and the overall
stock remains slightly below 2 million sq m, with half of
this amount located in Bucharest/Ilfov region.
Developers have generally preferred the central and
western part of the country with new units delivered in
Timisoara, Arad, Cluj Napoca and Brasov.
Similar to the previous years, developers are focused
on a tailored build approach, the best example
being Globalworth which is developing new phases
of Timisoara Airport Park preleased by Elster and
Continental.
The key lease contracts of the year were:
A pre-lease contract signed by Continental
Automotive for more than 44,000 sq m in Timisoara
Airport Park;
Rhenus Logistics which leased 14,000 sq m in
Mercury Logistics Park, near Bucharest;
Ursus Breweries which leased 9,300 sq m logistic
space and 10,000 sq m platform in Log Centre,
Timisoara.

The key investment deals were:

Europolis Logistics Park located near Bucharest
was bought by the Czech company Point Park
Properties (P3) for 120 mn.
Timisoara Airport Park was bought by the investment
fund Globalworth for 18 mn.
Logistic Innovations Park was bought by Secure
Property Development for 12.6 mn.
PGS SOFA & Co acquired with 4.8 mil mn a 26,000
sq m warehouse located in Oradea from Hanil
Electronic (which is now insolvent).

Prime
properties

Secondary
properties

Headline rent logistic

space Euro/sq m/mth

3.2 - 4

2.5-3

Headline rent logistic

platform Euro/sq m/mth

0.5-0.75

0.25-0.5

Standard lease duration

3-5 years

1-3 years

Vacancy rate

< 10%

10%-20%

Investment yield

9-10%

10-11%

Industry
The industrial sector contributes roughly 30% to
the countrys GDP with growing prospects for the
coming years. Growth is driven by new investments
targeting primarily the automotive sector. The value
of new investments in production facilities (delivered
or under-construction in 2014) exceeds 250mn, and
more than 50% of this amount represents investments
from companies providing services to the automotive
industry).
In recent years several regional cities have made strong
efforts to attract and promote themselves as a viable
option for manufacturers. Cities such as Cluj, Sibiu,
Ploiesti, Timisoara, Craiova and Brasov already have
the basic infrastructure required for industrial activities.
Consequently, new production facilities were delivered
in these locations in the past years, while others are in
different phases of construction. Other cities such as
Braila or Bistrita which were less appealing for investors

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2014 / Q1 2015 update Romania property market report

in recent years are starting to become more visible.

Cluj

Bosch open a new unit in Tetarom III industrial park

(Jucu) in March 2014, focused on production of
electrical components for cars;
Pfizer is currently extending the capacity of its
Ferrosan factory dedicated to packaging operations;

Sibiu

Continental Automotive completed in October 2014, a

research centre providing an additional area of 7,000
sq m to its existing facility;

Grupo Antolin - CML, Spanish manufacturer of car

parts developed a production facility of circa 13,000
sq m;

Jaeggi Industries, a Swiss manufacturer of

refrigeration and air conditioning components is to
open its production facility in Q2 2015, near the west
industrial zone.

Ploiesti

Grupo Industrial Roquet specialised in production of

hydraulic components, is currently developing its first
unit outside Spain;

Tessutica (part of Beaulieu Group) which specializes in

jacquard weaving, selected Ploieti West Park for its
operations.

Timisoara

Globalworth investment fund is extending Timisoara

Logistic Park;

Kimball Electronics, an American manufacturer of

electronic components for the auto and medical
industries, is developing its first unit in Romania
(second in Europe after Poland);

Hamilton, a company specialised in manufacturing

medical technologies is developing a new unit in
Giarmata;

Helios Phoenix is extending its logistic park; the

extension was pre-leased by TT Electronics.

Craiova

ETI European Food Industries will open its first food

manufacturing plant outside Turkey, in High-Tech
Industry Park Craiova.

Brasov

11

Varta announced plans for developing a factory

dedicated to micro batteries.

Insight

Braila & Urlati

Yazaki has decided to open two new production

facilities in these cities, in addition to the existing units
located in Ploiesti, Arad, Timisoara and Caracal.

Bistrita

Leoni, a German company specialised in wire and

cable for the automotive industry is extending its
operations in Bistrita, where the company has been
present since 2002 andis the main employer in the
region.

Additional examples include: Drxlmaier the manufacturer

of replacement parts and wiring will consolidate its local
operations with a new unit in Pitesti; Silcotub and Michelin
will expand their operations in Zalau.

The vast majority of the companies listed above are

developing their own tailored facilities, benefiting in
many cases from state subsidies or support from solid
financial institutions such as EBRD. Although less
visible, the agricultural sector is generating a large
demand for storage and production facilities. Similar
to the companies gravitating around the automotive
industry, those related to the agribusiness are in most
cases building their own facilities and only rarely leasing
spaces as the technical requirements of each of these
enterprises are very specific.

Outlook
There is a range of high quality premises available for
the dynamic development of the logistics and industrial
sector in the coming months. We see interest in
speculative developments, which indicates a positive
future evolution of this sector in 2015-2016.

rics.org

Acknowledgments
RICS Romania would like to thank all of the following
professionals who have contributed to this market report.
Oana Rucareanu MRICS, Head of Valuation | Eurobank Property Services
David Howard MRICS, Managing Director | Winterhill Romania
Carmen Ravon Head of Retail Agency | Jones Lang LaSalle
Rodica Tarcavu Head of Industrial Department | DTZ Echinox
Ioana Simion Valuation & Advisory Division | The Advisers / Knight Frank
Elena Morariu Valuation & Advisory Division | The Advisers / Knight Frank
Dan Popete MRICS, Head of Valuation | Marfin Bank

For additional information please contact:

Radu Boitan FRICS, Chairman RICS Romania
e ricsromania@rics.org
Anna Orcsik Regional Manager, Central & Eastern Europe
(excl. Poland)
m +36 20 262 88 91
e aorcsik@rics.org
rics.org/europe

Insight

12

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