Strengthening of the CTP position in the growing Romanian market
CTP’s portfolio in Romania is growing constantly. CTP plans to beat the Q1 2018 development target of 700,000 m² across Romania ahead of schedule, as it already has over 400,000 m² under construction, in addition to the already existing 615,000 m² gross leasable area (GLA). Among the ongoing construction works, the most important is the rapid development of CTPark Bucharest West, the most successful park in the country.
Two new warehouse buildings at CTPark Bucharest West totalling almost 40,000 m² were already delivered for our clients Quehenberger, Geodis, Tibbett Logistics and Simplu Prest. Another new 60,000 m² building will be delivered in Q4 2017 for Profi, Network One Distribution, Ekol and KLG Europe. In the first quarter of 2018 CTP will deliver a new building of 80,000 m² for DSV and other future tenants.
The future plans of CTP as the leading player of the Romanian market are to strengthen our position by reaching a total of approximately 1 million m² GLA no later than Q1 2018 and around 1,250,000 m² GLA at the end of 2018.
The forecast for the Romanian industrial and logistics market is that it will reach a stock of 3 million m² of GLA in 2017 . Approximately 75 per cent of this new stock is focussed along the A1 highway corridor in the west of the capital city Bucharest.
The existing stock of industrial and logistic space in Romania reached 2.5 million m² at the end of 2016, of which 1.2 million m² were in Bucharest. That translates in a density of 128 m² per 1,000 inhabitants, significantly lower than in the other countries in the CEE, such as in the Czech Republic or Slovakia, where there is about 400 m² of industrial space per 1,000 inhabitants. Thus, it is clear that there is an undersupplied market of around 20 million people whose purchasing power is rapidly growing and therefore a great opportunity for CTP.
The Romanian market is ready to outstrip new records by the end of the year in terms of the volume of new deliveries and leasing activity. The demand for both logistics and industrial space is increasing and there are many possibilities for growth in the future.
More about the Romanian trends and market insights on the website property-forum.eu