Bucharest ranks among Europe's cheapest logistics markets

Business Forum8 July, 2026 at 1:43 PM

Romania's logistics and industrial market remains one of the most competitive in Europe in terms of occupancy costs. With an average prime industrial rent of €4.8/sqm/month, Bucharest ranks as the fourth most affordable market among the European locations analysed, at a time when companies worldwide are restructuring their supply chains in response to geopolitical uncertainty and rising operating costs. These findings are highlighted in "Waypoint: Global Industrial Dynamics 2026", a report by Cushman & Wakefield that examines trends across 135 industrial and logistics markets worldwide.

While industrial rental growth has moderated across many mature markets, demand remains resilient globally, driven by e-commerce, retail distribution and manufacturing. In Europe, CEE markets, including Bucharest, continue to attract companies seeking to optimise costs. By the end of 2025, Romania recorded annual industrial rental growth of approximately 2%, in line with the global average of 2.2%. Rental levels in Bucharest remain lower than in Western European hubs such as London, Amsterdam or Frankfurt, while also remaining below regional competitors such as Warsaw and Prague.

The local market's competitiveness is also supported by labour costs. Bucharest ranks in the lower tier of European locations in terms of wage costs within logistics and manufacturing, providing an advantage in attracting investment. At the same time, wages in these sectors have increased by 7%-12% over the past 12 months, according to Economic Research Institute data cited in the report. Romania is also among the European markets with high electricity costs for industrial users and recorded one of the most significant annual tariff increases in 2025. Nevertheless, energy accounts for a smaller share of total occupancy costs than rent and labour, allowing Romania to maintain its overall advantage.

Companies are placing greater emphasis on building energy efficiency, access to renewable sources and the ability of logistics facilities to integrate automation solutions. Across Europe, the logistics market currently remains favourable to occupiers, but Cushman & Wakefield expects space availability to gradually decline in the coming years as vacancy rates stabilise and the pace of new developments moderates. Cities such as Bucharest are well positioned to benefit from corporate diversification and regionalisation strategies.

"The Waypoint report confirms that Romania continues to strengthen its position as one of the most competitive logistics markets in Central and Eastern Europe. We are noticing occupier decisions shaped not only by rental levels but also by energy efficiency, building sustainability and the ability of logistics facilities to integrate automation technologies," said Ștefan Surcel, Head of Industrial Agency, Cushman & Wakefield Echinox. Globally, e-commerce remains the primary demand driver, followed by retail distribution and general manufacturing, while sectors such as energy and advanced technology are generating new sources of demand.

Tags:
Romania, logistics, supply chain, Cushman&Wakefield, Industrial Rents, Occupancy Costs,