Growing interest in speculative construction and increasing investment activity in the CEE region

The Czech market continued its expansion with significant new supply and stable prime rents, while Slovakia saw a slight increase in vacancy rates alongside steady rents. Hungary experienced substantial construction activity despite a higher vacancy rate, and Romania maintained stable rents with a focus on production-driven take-up. The vacancy rate and prime rents remained stable in Serbia. These diverse trends highlight the unique strengths and dynamics across the CEE industrial markets.

Romania's industrial market reached a total stock of 7.56 million sqm, with 208,300 sqm of new completions in Q3 2024. The vacancy rate remained stable at 4.2%. The net take-up for the quarter was 131,200 sqm, driven primarily by production companies. Prime rents were stable at €5.00 per sqm per month, and the industrial investment volume reached €110 million, marking the highest volume in CEE in Q3 2024.

„Romania’s industrial real estate market demonstrated remarkable stability in Q3 2024, fueled by robust demand from production companies across various sectors. This resilience, coupled with a healthy investment volume, underscores the country’s strategic importance as a hub for industrial development and investment in Central and Eastern Europe. With its competitive advantages, Romania continues to attract significant attention from both local and international investors.”, declared Andrei Bentea, Senior Consultant within iO Partners Romania.

Czech Republic: The Czech industrial market continues to expand, with the total modern industrial stock reaching 12.2 million sqm. In Q3 2024, 163,500 sqm of new supply was added, with an additional 1.04 million sqm under construction. The vacancy rate slightly increased to 3.1%, while prime rents in Prague remained stable at €7.25 per sqm per month. The net take-up for the quarter was 210,300 sqm, dominated by manufacturing companies, which accounted for 70% of all new deals. The investment volume in the industrial sector reached €57 million.

Slovakia: In Slovakia, the total modern industrial and logistics stock stood at 4.48 million sqm by the end of Q3 2024. The vacancy rate increased to 3.1%, up from 2.4% in the previous quarter. The market saw 23,400 sqm of new completions and a gross take-up of 147,770 sqm. Prime rents in Bratislava remained flat at €7.35 per sqm per month. The industrial investment volume for the quarter was €94.4 million.

Hungary: The Greater Budapest area in Hungary saw its total modern industrial stock grow to 3.63 million sqm, reflecting a 5.3% year-on-year increase. The vacancy rate rose to 9.6%, and the total industrial demand for Q3 was 388,975 sqm. Prime rents stood at €5.50 per sqm per month. The market remains active, with 400,000 sqm of industrial space under construction, 53% of which is pre-leased.

Serbia: The industrial market in Serbia reached a total stock of 1.15 million sqm, with 18,000 sqm of new completions in Q3 2024. In total, 320,000 sqm of new space was successfully delivered in 2024, primarily by CTP and VGP investments. The vacancy rate and prime rents remained stable at 6.2% and €5.00 per sqm per month, respectively. Belgrade and its surrounding area continue to be the largest submarket. Over 26% of newly delivered buildings are BREEAM certified, with this trend expected to grow in the future.

The industrial markets in the CEE region exhibit diverse trends. The Czech Republic and Slovakia lead in terms of prime rents, with €7.25 and €7.35 per sqm per month, respectively. Hungary shows significant construction activity with 400,000 sqm under construction. An interesting aspect within the region is the vacancy rates of industrial spaces. The Czech Republic, Serbia, Slovakia, and Romania maintain low vacancy rates, while Hungary reaches nearly 10%. Gross take-up varies significantly, with Hungary recording the highest at 388,975 sqm, followed by the Czech Republic, Romania, Slovakia, and Serbia.