Romania could become the new 'magnet' for industrial investment in the coming decade, amid strategic reconfigurations in the European economic landscape, according to a specialist analysis published on Monday.

'Far from being a peripheral market, our country has become a magnet for investment, attracting capital and large-scale projects thanks to a unique combination of factors - from modernising infrastructure to the global trend of production relocation. Even though Romania currently faces economic challenges, mainly due to fiscal measures, the outlook for the 2026-2030 horizon is extremely positive,' shows the analysis carried out by Frames consultancy company.

According to analysts, once budget and especially fiscal framework issues are stabilised, Romania has the potential to become a new power hub in the industrial warehouse and production facility market.

Statistical data quoted in the analysis show that the total stock of modern industrial and logistics space has almost doubled in recent years, reaching around 7.5 million square metres, consolidating Romania's position as the third largest market of its kind in Central and Eastern Europe, after Poland and the Czech Republic.

'While growth was previously driven mainly by the e-commerce boom and the need for logistics warehouses, we are now witnessing a structural transformation. One of the strongest growth drivers is the relocation of production (nearshoring). International companies are looking to shorten their supply chains and move factories closer to European markets, and Romania, with its skilled workforce and competitive costs, is a preferred destination. Initially driven by retail, FMCG, and third-party logistics (3PL), supporting growth in big-box storage for distribution, demand is now increasingly diversified. This is reflected in the numbers: in the past two years, about a third of industrial space demand has been for production activities, a major jump from the 10-15% share seen in previous years,' the specialists note.

In their view, many of these production projects are custom-built or even owner-occupied, meaning that production activity is underrepresented in leasing statistics.

'At the same time, logistics and e-commerce remain strong: retailers (including food/FMCG and fashion) and logistics operators still account for about half of leased space, ensuring continued demand for warehouses and distribution centres,' the Frames analysis points out.

Another increasingly evident trend is the explosion of geographic dispersion. While Bucharest previously dominated the industrial/logistics construction market, there is now rapid development of regional centres. Cities such as Timisoara and Arad, benefiting from proximity to the EU border, and Brasov and Sibiu, with their industrial heritage, have become 'hot spots' attracting a significant share of new investment.

According to forecasts, one of the areas with the highest potential is the Moldavia region, particularly with the construction of the A7 Motorway, which has already brought cities like Iasi and Bacau onto investors' radar.

In the case of the Capital, the construction of the A0 ring road is expected to drive expansion in logistics spaces in adjacent areas, especially in the south of the city, where infrastructure was previously underdeveloped, experts say.

'This boom is not accidental, but supported by two major strategic pillars. Full Schengen accession has eliminated queues at land borders, drastically reducing transit times and costs, turning Romania into an even more efficient logistics hub for South-Eastern Europe. In parallel, the influx of European funds, particularly through the National Recovery and Resilience Plan, is financing an unprecedented modernisation of road and rail infrastructure, creating the backbone necessary for this industrial expansion,' the source says.

Frames experts estimated in 2024 that Romania had the opportunity to become a genuine regional hub in logistics, production and cross-border services, with the most attractive investment areas in this sector being the Port of Constanta, Bucharest/Ilfov and the Central region.

Company forecasts indicate that Romania has the potential to attract 10 billion euro in investment in the development of logistics and industrial spaces, from both private and public sources.

The Frames analysis was based on official data regarding the dynamics of business in the logistics and industrial sectors, provided by the Ministry of Development, the National Institute of Statistics, the National Prognosis Commission, Eurostat and a number of specialist firms. AGERPRES (RO - writing by: Daniel Badea; EN - writing by: Adina Panaitescu)