How did Dunwell come into existence, and what impact has it made on the local industrial market?

Dunwell was born four years ago, born of our collective experience in real estate, offices, and industrial sectors. Since our inception in 2017, we’ve rapidly expanded, now comprising around 10 brokers and support staff. In our initial year, surpassing the EUR 1 million mark propelled us into the market, and our youth hasn’t hindered us—continually topping charts in deals and leased square meters. We’ve secured a position among the top 2 in industrial brokerage, brokering over 1 million sqm of land and leasing more than 200,000 sqm of warehouse spaces.

The industrial segment seems lucrative, especially during the pandemic. What should investors be wary of in the Romanian market?

While retail and office spaces gained momentum earlier, the industrial properties began flourishing around 2015. The market witnessed remarkable growth, particularly in 2020, driven by the surge in demand for warehouse spaces due to the e-commerce shift. Despite perceptions, Romania offers a diverse range of accessible land plots. International developers may initially feel daunted by the market, but local expertise assuages their concerns. Intention and financing are key; thereafter, investors can find support in navigating land acquisition, permits, and securing tenants.

Within the warehouse portfolio, do specific industries dominate?

In Romania, 90% of warehouse spaces are leased to distribution and retail companies. Production facilities gravitate toward the Western regions for easy access to the EU. Over the last few years, Romanian companies increasingly opt for class A warehouses, prioritizing quality over affordability.

Reflecting on challenges, what are the most pressing issues in the Romanian logistics real estate market?

Commonly associated challenges revolve around corruption and navigating local authorities. However, adept understanding of regulations fosters a functional system. The misperception about the difficulty in obtaining permits has been surpassed. Collaboration with authorities has led to impressive project development. Infrastructure projects facilitating new company access can experience delays due to multiple stakeholders; yet, eventual success is seen. Construction costs are higher due to seismic risks, but Romania still yields high returns.

What’s Dunwell’s focus for the next few years?

Our primary objective is team consolidation and a substantial increase in market share. Stepping away from our current second-place position, we aim to become the dominant player in the industrial market. We’re also exploring new business lines to add to our portfolio by 2024, although it’s in its infancy.

Any parting thoughts about Romania’s industrial real estate market?

Contrary to popular belief, the Romanian market operates efficiently! Yielding returns more attractive than foreign markets, it’s conducive to developing projects with higher returns than in several European countries. The message is clear: the Romanian market presents abundant opportunities, urging investors to seize the moment without hesitation!