Timisoara

Timisoara confirms its status as a magnet city in the Western area and attracts two new real estate investments exceeding 100 million Euro
Timisoara confirms its status as a magnet city in the Western area and attracts two new real estate investments exceeding 100 million Euro 1620 1080 ROMANIA PROPERTY CLUB

Timisoara confirms its development potential and, in addition to consistent investments in infrastructure, attracts two new real estate developments, with an investment value of over 100 million Euros, shows an analysis by Romania Property Club (RPC), based on the conclusions of the Timisoara Real Estate Roundtable, an event organized on Thursday, September 25, 2025.

Local and central authorities are focusing on investment for development, with a program in 2025 of 270 million Euro (City Hall) and 100 million Euro (County Council). The 3 billion Euro A9 motorway, which connects Timisoara to the Serbian border, is currently under action.

Two of the most powerful Romanian entrepreneurial groups are preparing two large-scale investments on a combined area of ​​over 40 hectares. Țiriac Group has obtained the PUZ for a mixed development – housing, offices, commercial spaces, hotels and services – in the Abator area. Pavăl Holding has obtained a PUZ for a 36 ha industrial and logistics park located in the northern part of the city. The two projects total investments of over 100 million Euro.

Iulius Town remains the main business and commercial hub in the city, with a retail area exceeding 100,000 sqm and hosting 450 stores, and four modern office buildings, totalling 80,000 sqm, where 11,000 employees work. Iulius investments in Timisoara total 442 million Euro. “The trends we have seen since last year on the office market have continued in 2025. In the absence of new project deliveries, demand is moving towards the modern infrastructure created in previous years. The competitive advantage belongs to green buildings, whose efficiency is reflected in operating costs and in the comfort that employees have,” said Laurențiu Manea Office Buildings Manager, Iulius Town Timișoara. Regarding the retail component, Iulius Town’s market share reached 28% in 2025, the portfolio being expanded with exclusive brands, as well as department stores, while bringing together all the major fashion anchors.

What attracts investors to this area of ​​Romania? Timiș is the third most popular destination (after Bucharest-Ilfov and Cluj) for foreign investors. Approximately 150 companies with international shareholding and a significant economic impact (turnover of over 5 million Euro and employing at least 10 people) have established their headquarters in Timiș. They operate mainly in the chemical and plastic materials, automotive and electronic components, transport, IT and agriculture sectors. By country of origin, Central and Western Europe dominates the top of investors. Timiș’s strong economy has kept the unemployment rate at 1.06%, while the average net salary is around 1,200 Euro, the third highest after Bucharest and Cluj.

The sharp economic development causes effervescence on the land market. Thus, data from real estate consultancy Hitch & Mosher shows that plots authorized for industrial development are priced between 35-60 Euro/sqm, those for retail development are priced between 120-500 Euro/sqm, and those for residential and mixed development are priced between 200-1,000 Euro/sqm.

The total office stock in Timișoara remained stable at 285,000 sqm, with the main projects in the city being Iulius Town and AFI Park. The requested rents vary between 12.5 and 14.5 EUR/sqm, and negotiations may become competitive, given the 15% vacancy rate.

The level of wages coupled with a lower cost of housing than in other regional poles, leads to a more generous disposable income that fuels the retail sector. According to Hitch & Mosher data, 200,000 sqm of commercial spaces are under development at the county level, with delivery deadlines Q2 2025 – Q1 2027.

In terms of housing affordability, Timișoara is below Cluj-Napoca, Brașov and Bucharest, but with a considerable increase compared to the previous year. The average asking price for new apartments in the first semester was 1,844 Euro/sq m, up 10% compared to the first semester of 2024, according to Imobiliare.ro data. In August, after the VAT increase, it reached 2,127 Euro/sq m.

Despite the rich calendar of events and the “European Capital of Culture 2023” initiative, statistics show for 2024 a number of tourists below the pre-pandemic level: the total number of tourists who arrived in Timisoara in 2024 is 9.21% lower than in 2019. In the first half of 2025, compared to the same period last year, the figures show an increase of 17.68% for hotels and 3.20% for apartments, according to INS data. The interest of tourism investors remains high for this destination. Data from the consulting company Est Hospitality shows that a number of 616 rooms affiliated with international chains are under development, the most recently announced being Radisson Individuals.

The total stock of modern industrial and logistics spaces in Timișoara has increased by approximately 10% in the last year, reaching 850,000 sq m. The county has seen its vacancy rate increase from 8.2% to almost 11% (the second highest in Romania after Iași), despite several notable large transactions and a total leasing activity that exceeded 85,000 sq m in the last 12 months.

New Radisson Hotel in Timisoara
New Radisson Hotel in Timisoara 1920 1080 ROMANIA PROPERTY CLUB

Radisson Hotel Group has signed Galaxy Hotel Timișoara, a member of Radisson Individuals. The new-build property is set to open in Q1 2026 and marks the debut of the Radisson Individuals brand in Romania.

Galaxy Hotel Timișoara, a member of Radisson Individuals will offer 48 rooms and apartments, including three premium apartments designed for extended stays. The hotel will feature a lobby bar with outdoor terrace, an all-day dining restaurant, and meeting facilities comprising a boardroom, a larger event space, and a pre-function area. Guests will benefit from exterior parking and excellent connectivity, just 20 minutes from Timișoara Airport and 7 minutes from the main railway station, while enjoying a prime location in the city’s central Cetate district.

“We are committed to elevating the hospitality offering in Timișoara, and partnering with Radisson Hotel Group enables us to deliver an international standard of quality and service. Radisson Individuals is the perfect fit for our vision, offering both brand prestige and the flexibility we value. We’re proud to introduce this brand to Romania and confident that Galaxy Hotel Timișoara will become a top choice for both business and leisure travelers,” says Lucian Popa, owner of the hotel.

“Timișoara is a dynamic and fast-growing destination that continues to attract both local and international travellers. We are confident that the Radisson Individuals brand will not only elevate the city’s profile but also contribute to the overall development of its hospitality market. This partnership represents a strong step forward in positioning Timișoara as a key location for quality tourism and business travel,” said Mircea Drăghici, CEO of EST Hospitality and project consultant overseeing operator selection.

RPC Talks with Alexandros Diamantis, MEDCITY
RPC Talks with Alexandros Diamantis, MEDCITY 2202 2560 ROMANIA PROPERTY CLUB

RPC Talks to Alexandros Diamantis

Managing Director, MEDCITY

Profile of the company

MEDCITY is a leading real estate developer in South Eastern Europe focused in developing and leasing high standards medical buildings for hosting exclusively healthcare activities and related services.
MEDCITY is a member of SofMedica Group, a leading organization in Europe focused in healthcare innovation since 1994.

What were the main business results for 2024 and what are the company’s business targets and plans for 2025?

In 2024, MEDCITY continued its strategic expansion across Romania, reaching 12 medical hubs and reinforcing its position as the leading developer in the sector. We successfully completed the extension of MEDCITY Craiova and launched the reconversion of MEDCITY Timisoara, marking our expansion into Western Romania. This milestone enables us to better serve the growing demand for modern, high-quality healthcare spaces nationwide.

With our existing portfolio nearing full occupancy, we are now laying the groundwork for MEDCITY 2.0—an ambitious initiative to further expand real estate concepts that deliver a meaningful social impact to local communities and redefine the future of healthcare infrastructure.

In 2025, MEDCITY aims to accelerate its expansion by developing new projects in strategic locations across Romania, bringing state-of-the-art medical hubs closer to more communities and integrating top healthcare providers with innovative medical services.

The upcoming completion of MEDCITY Timisoara, extensions of two existing buildings, the launch of a new project in Otopeni, and the preparation of future developments are key steps in our strategy to strengthen our presence in major urban centers. Our goal is to double our total portfolio GLA within the next 2–3 years, addressing the increasing demand for modern, purpose-built healthcare facilities.

A major milestone in our roadmap will be the launch of our flagship project in northern Bucharest. This development will set a new benchmark in the medical real estate sector, redefining industry standards and establishing a premier healthcare ecosystem through a carefully curated mix of leading healthcare operators.

How do you perceive the growth of the medical real estate sector in Romania in 2025, especially in light of the increasing demand for modern healthcare facilities and tech-enabled spaces?

MEDCITY, as a real estate developer exclusively focused on the healthcare industry for the past two decades, has witnessed a significant shift in the mindset of medical operators. More than ever, they are transitioning from non-compliant, outdated facilities to purpose-built, high-standard medical spaces.

Given these evolving dynamics, we anticipate strong growth in Romania’s medical real estate sector in 2025. This expansion is driven by the rapid rise of the private medical services sector, increasingly stringent regulations governing medical properties, a growing demand for high-quality healthcare, and a rising interest in modern medical facilities that enhance operational efficiency, improve patient care, and comply with strict standards.

In response to these market trends, MEDCITY is well-positioned to meet the rising demand with our state-of-the-art healthcare hubs, designed to integrate advanced medical facilities while ensuring full compliance with the highest regulatory standards.

 

What are the top priorities for healthcare providers when leasing medical real estate in 2025? What MEDCITY offers them?

Healthcare operators prioritize medical spaces that offer flexibility, accessibility, regulatory compliance, and adaptability to evolving healthcare needs. They seek real estate solutions that are strategically located in high-traffic areas with strong demographic demand, ensuring ease of access for patients. Additionally, modern medical facilities must enhance operational efficiency, elevate patient comfort, and integrate advanced healthcare technologies.

Beyond these fundamental requirements, MEDCITY developments stand out as synergy-driven platforms, where top medical providers offer complementary services in high-standard facilities under one roof. This model enhances the patient’s experience, streamlines operations, and transforms each hub into a true one-stop-shop medical destination.

Through our integrated approach, we manage the entire process—from development and fit-out to 24/7 operational support—tailoring every aspect to meet our tenants’ needs. This allows healthcare providers to focus entirely on their core mission: delivering high-quality medical care, while we take care of the complexities of real estate management.

Unlike commercial, office, or logistics real estate, healthcare real estate development comes with inherently lower yields. However, as part of a Group dedicated to healthcare innovation for over 30 years (SOFMEDICA GROUP), we recognize the critical need for purpose-built medical facilities. We have committed to investing in this sector—even with lower returns—because we strongly believe that someone must fill this gap in the real estate market.

This commitment is not only appreciated by the ecosystem but also generates collateral benefits for other companies within our Group. By bridging this market gap, we contribute to the long-term development of Romania’s healthcare infrastructure, ensuring that both medical operators and the communities they serve have access to the high-quality facilities they deserve.

What impact are Romanian and EU regulations having on the development and operation of medical real estate in 2025?

Romanian and EU regulations governing medical real estate have become increasingly stringent, reinforcing the need for healthcare facilities to operate in purpose-built, fully compliant spaces. Stricter guidelines on patient safety, accessibility, infection control, and energy efficiency underscore the necessity of hosting medical activities in buildings specifically designed for this purpose.

Unlike classic real estate developments—such as residential, commercial, or retail spaces — these regulatory requirements cannot be adequately met through simple adaptations. In most cases, attempts to retrofit such spaces for medical use prove impractical and ultimately result in compromised functionality.

At MEDCITY, our developments are designed from the ground up exclusively for healthcare activities, ensuring full compliance with the latest regulatory standards. This approach provides an optimal environment for medical operators to deliver high-quality services while meeting the strictest safety and operational requirements.

Aligned with ESG principles and local regulations, our projects integrate nZEB (Nearly Zero Energy Building) design principles and eco-friendly solutions such as photovoltaic systems and green roofs to enhance sustainability.

By prioritizing compliance with these evolving regulations, we create sustainable, future-ready healthcare environments that support operational efficiency, enhance safety for both patients and healthcare professionals, and uphold environmental responsibility.

Hexing invests in 8,000 sqm facility in Timisoara
Hexing invests in 8,000 sqm facility in Timisoara 2560 1706 ROMANIA PROPERTY CLUB

18.03.2024

Hexing invests in 8,000 sqm facility generating over 100 high value jobs in Timisoara, at Globalworth Timisoara Industrial Park I, assisted by CBRE.

The new facility of Hexing Technologies Europe SRL, a subsidiary of the Hexing Group and a leading green energy solution provider, set within the thriving Timisoara Airport Park, will serve as a hub of innovation, extending Hexing’s digital energy service footprint across Europe. As part of Hexing’s long-term vision to build a greener world, the state-of-the-art facility will serve as a center of excellence to produce advanced smart metering solutions, including intelligent electricity and water metering systems, distribution automation solutions, solar inverters, batteries, and electric vehicle chargers.

Timisoara I Industrial Park is strategically located near the international airport, and offers high-tech buildings for manufacturing, warehousing, and logistics operations. The park is part of the recent transaction between Globalworth and CTP, in which CTP bought the logistic portfolio of Globalworth from Timisoara, Arad, Oradea and Pitesti.

“Timis is probably the most sought-after market by energy players, who have reached a level of maturity which requires already production facilities, not just energy land” explained Mădălin Aresmerițoaie, Senior Consultant Industrial & Logistics Services, responsible for the West/North-West market at CBRE Romania. “The Manufacturing sector is growing, returning to the pre-pandemic trend which is a sign of Romania’s health – in 2023 we recorded 18% of total leasing activity. We are pleased that we have designed the best scenario for Hexing, helping them to identify the optimal location both in terms of current scale and expected growth in the coming years.”

The establishment of this facility aligns with the Romanian regulator ANRE’s 2019-2028 smart meter development directive, further emphasizing Hexing’s contribution to the advancement of Smart Grid 2.0. This strategic initiative underscores Hexing Europe’s commitment to becoming a leading local manufacturer within the European Union while fostering technological innovation in the region. The facility’s advanced manufacturing capabilities will ensure shorter delivery times, catering to the demands of both the local market and beyond.

Through the establishment of this facility, Hexing Europe will forge a close partnership with local partners. This collaboration will enable Hexing Technologies Europe SRL to provide enhanced pre-sales and after-sales support, contributing to the seamless integration solutions in Romania and other European Union countries. Furthermore, the facility’s advanced manufacturing capabilities will ensure shorter delivery times, catering to the demands of both the local market and beyond.

Largest regional logistics hub gathering 1.7 mln. modern sq m, the Western / North-Western sub-market accommodates through important cities such as Timisoara and Cluj-Napoca both developers and tenants internationally renowned, enjoying country’s western border proximity. Skilled labour force and the gate to Western Europe, makes the West / North-West area the most sought after regional sub-market by developers and investors.

Timis county claims the largest share of modern industrial stock region wise and hosts numerous production, logistics and storage facilities where developers capitalize on the synergy created by the strategic location, infrastructure, and skilled workforce and 87% of the modern stock is class A. Also, the West / North West part of the country is set to be the largest recipient of the future new supply, respectively 45%, followed by Bucharest with 32% and East / North East region with 14% from the total.

 

 

 

Timisoara logistics pipeline: 40,000 square meters
Timisoara logistics pipeline: 40,000 square meters 1440 1080 ROMANIA PROPERTY CLUB

29.10.2023

 Timisoara is the second most developed industrial & logistics market outside Bucharest, with a total modern stock of 733,000 sqm (c.a. 11%) and more than 40,000 sqm under development. Its outstanding proximity to Western Europe, the border, and plug into the TEN-T infrastructure made Timisoara the go-to hub for manufacturing and logistics. 

VGP, Timisoara

In terms of production, the most developed sectors are computers, electronics & optical equipment, automotive, electrical equipment, rubber & plastics. Global industry giants set foot and subsequently expanded in Timisoara. Continental, TRW Automotive, Hella, Draexlmaier, TE Connectivity, Kimball, and Flextronics are just a few select names that contributed to one of Romania’s strongest production hubs.

The total leasing activity for the first half of 2023 amounts to 88,000 sqm, leading to a vacancy rate of 6.8%. A market equilibrium is considered when the vacancy rate reaches 8%; below this threshold, the market is considered to be a landlord’s market. The status quo is reflected in the rise of headline rents to 4.25 EUR/sqm and the continuous plans for the development of established professional developers. The region concentrates on the operations of the four strongest industrial & logistics investors and developers. CTP, WDP, VGP, and Globalworth have extensive footprints in Timis. The first three companies rely on the economies of scale, network effects, and relative value provided by their extensive pan-European presence and ability to serve a variety of client needs. 

CEE-focused investor, Globalworth, seized the opportunity to serve some of the world’s most reputable companies in consumer goods, automotive, electrical equipment, and logistics. Encompassing 58 ha, Timisoara I&II industrial parks span over 132,000 sqm of existing GLA and offer 185,000 sqm for built-to-suit requirements. Global Vision also acted as a general contractor and asset manager for the Continental site.

VGP owns 35 ha in Timisoara, with a total built capacity of up to 180,000 sqm. Presently, it hosts retailers, distribution, and logistics operators due to its strategic location. VGP Park Timișoara, although currently fully leased, still has expansion possibilities.

WDP invested in two sites totalling c.a 22 ha and 156,000 sqm GLA in the proximity of the A1 highway and Traian Vuia International Airport. Blue chip tenants in retail, consumer goods, and logistics thrive in the spaces managed by the Belgian operator.

CTP owns almost a third of the total modern stock in Timisoara – 220,000 sqm. The three industrial parks (Ghiroda, Sud, Vest) are built over more than 34 ha and offer development opportunities for more than 200,000 sqm subject to tenant demand. Major transportation, logistics, distribution, and courier services occupy large areas within the CTP Timisoara business parks.

Other notable industrial & logistics investors and developers in Timis include Logicor, Artemis, and Transilvania Constructii. The local authorities are prepared to bid for international clients as well. The 60-ha Freidorf Industrial Park is split into various parcels with all the utilities on site and can be concessioned for up to 49 years, with an extension option. It is important to note that companies can benefit from tax abatements subject to a transparent scale tied to the total investment amount and headcounts. In addition, any green buildings benefit from further property tax reductions.

Timisoara is not only a strong manufacturing base for global giants or a key point on the map for pan-European investors and developers. It is also a strong entrepreneurial hub. The inherent know-how transfer from international investors, a niche of opportunities to serve global clients with a core business model, and the entrepreneurial worldview set the base for strong local transportation, distribution, auto, and IT production companies.

Timisoara is set to maintain its steady course and potentially expand its service sector, as this avenue is fully supported by an educated workforce and a critical mass of capital.

Timisoara: one of the highest retail densities in the country 
Timisoara: one of the highest retail densities in the country  1600 899 ROMANIA PROPERTY CLUB

28.10.2023

The modern retail stock in Timisoara is well developed, registering one of the highest retail densities in the country (1,055 sqm per 1,000 inhabitants), reflecting investors’ and retailer’s trust in the long-term economic strength and resilience.

Iulius Mall, Timisoara

The investors’ focus on this city determines a dynamic land market. Data from local consultancy company Hitch & Mosher show that prices for permitted plots vary between 35-60 Euro/sqm for logistics developments, 113-350 Euro/sqm for retail developments and 155 up to 1,490 Euro/sqm for residential and mixed-use schemes.

The 265,000 sqm total stock consists of approximately two-thirds modern shopping centers and a third is reserved for commercial galleries and retail parks. The two dominant schemes are Iulius Town and Shopping City Timisoara, built by two of the most experienced retail developers (Iulius Group and Nepi Rockcastle, respectively).

The first modern mall was delivered by Iulius Group in 2005, as part of the integrated mixed-use development of Iulius Town, a 220 mil EUR investment. In addition to the office component, United Business Center, the scheme features a large exhibition & events center offering up to 2,250 seats for corporate set-ups and a fitness & wellness center managed by the country’s most experienced operator – World Class.

Iulius Mall, the first modern shopping center in the city benefited from an extension in 2019, reaching 102,000 sqm, making it the largest shopping area outside of Bucharest. It hosts the most representative retailers, such as Peek & Cloppenburg, iStyle (Apple partner), Calvin Klein Jeans, Inditex Group (Zara, Stradivarius, Pull & Bear), Guess, H&M, C&A. Cinema City operates a modern 12-room movie theatre.

Nepi Rockcastle inaugurated a 90 mil EUR new development at the end of 2015. More than 70,000 sq m GLA are occupied by Peek & Cloppenburg, Sephora, Levi’s, US Polo Assn, Inditex Group (Zara, Stradivarius, Pull & Bear), Reserved, Intersport, C&A, H&M, and other service, fashion, and food & beverages operators, as well as a Cinema City. In addition, the scheme is completed by a 10,000 sq m Carrefour supermarket and a 16,000 sqm Dedeman DYI that provide a complete shopping destination.

IKEA is one of the most prominent retailers that expressed trust in Timisoara by opening earlier this year its third store in Romania, the first outside the capital city. The 60 mil EUR investment covering more than 26,000 sqm is a BREEAM-certified big-box. The store serves both Timisoara and the wider West region – the most dynamic outside Bucharest-Ilfov. 

Smaller commercial galleries address a wide pallet of the city’s shopping needs. From legacy (Bega Shopping Center department store) to newly built (Sud Plaza) cost-efficiency retailers serve the needs of a wide spectrum of budgets and price-quality ratios. Scallier, through its FunShop brand, serves the city through two 11,000 sqm units, out of which one took over from Prima Shops. Both units are anchored by discounters (Kaufland, Penny, and Lidl).

While the relatively high retail density doesn’t make new developments likely for the foreseeable future, it is important to note that the existing retail schemes not only serve Timisoara Timis and neighbouring counties. Hungarians and Serbs often cross the border to find items and retailers which are not present in their area. Therefore, the real catchment area is larger than the official 320,000; thus, the real retail density is more sustainable and in line with other regional poles.

Skilled workforce attracts and retain big employers in Timisoara, the city becoming Romania’s third office market
Skilled workforce attracts and retain big employers in Timisoara, the city becoming Romania’s third office market 1684 1080 ROMANIA PROPERTY CLUB

27.10.2023

Relative to population and student migration patterns, Timisoara enjoys a right-sized stock of modern offices amounting to 300,000 sqm, with an expected pipeline of at least 24,000 sqm. The vacancy rate rose close to 15%, similar to Bucharest.

Iulius Town, Timisoara

Headline rents for class A offices range from 14.0 to 15.5 EUR/sqm/month. During 2022, Timisoara registered the strongest office demand outside Bucharest (more than 50,000 sqm). However, during the first half of 2023, the demand was modest, in line with Q1 2023 in the capital city. The slowdown does not discourage existing or new schemes to develop during the next 18 months.

IULIUS TOWN Timisoara is the city’s main urban regeneration mixed-use scheme that Iulius Group rolled over Romania’s most important regional poles. The project is a large integrated retail–office development. United Business Center, the office component, offers more than 80,000 sqm of modern LEED Certified class A infrastructure to numerous tenants in the IT&C and automotive sectors. The impressive roster of blue-chip tenants features Amazon, IBM, Microsoft, Endava, Bitdefender, Intel, Atos, Ness Digital, Cognizant, Autoliv, NTT Data, Visma Software, and many other reputable companies. The benefits offered by the city’s dominant retail scheme, along with medical educational and leisure facilities within walking distance made the case for employers looking to attract talent.

The first landmark modern office development in Timisoara is the City Business Center, presently named AFI Park Timisoara. Totaling 48,000 sqm over 5 buildings with modular floor plates, the property is home to reputable technology and support centers of multinational companies such as Wipro, Accenture, SAP, Hella, etc.  Facilities such as retail areas, a sky bar with a panoramic view, and a 5’ walking distance of the old city contributed to the resilience of the scheme that delivered its first building in 2006 and the last in 2015. The most notable fact about the property is that it is the only large commercial building sold twice in the city. NEPI Rockcastle purchased the project from local developer Mulberry Development and later sold it to AFI Europe.

Mulberry Development invested the proceeds into a mixed-use multi-phased project, called ISHO. The scheme includes a residential and a hotel (future Radisson Blu) component, a 700-spot multi-story parking, and a three-phased integrated office development spanning over 50,000 sqm of class A offices. Large occupiers such as Bosch Service Solutions, Visteon, Canon, SSI, Regina Maria, Deloitte, and KPMG chose ISHO as their operating base in the region.

In terms of future deliveries, it is important to flag that one of the established developers in Bucharest extended its presence in Cluj and Timisoara. Speedwell is developing a mixed residential–office scheme located on the former Paltim factory. Ultra-centrally located, overlooking Bega River, the 16,000 sqm of brand-new offices and old villa reconversion are expected on the market by the end of 2024. The developer announced earlier this year it has acquired 24,000 sqm of land, the former 1 iunie textile factory, where it intends to build a multi-purpose scheme – residential, offices and retail.

One of the items that commercial developers should account for in Timisoara is the generous centrally located landbank, as 25% of the city’s area is still unbuilt, according to the City Hall. While this might seem attractive as it allows for competitive land acquisition, it is important to pace development and carefully plan an exit. The low unemployment rate, the variable number of students, and their desire to live in the city postgraduation are to be accounted for when planning an investment, due to the possibility of competitive schemes that can benefit from a good location.

Strong fundamentals for a new development stage of Timisoara
Strong fundamentals for a new development stage of Timisoara 1620 1080 ROMANIA PROPERTY CLUB

26.10.2023

With a strategic location offering access to pan-European road infrastructure and a skilled educated workforce, doubled by efforts of local authorities both in terms of infrastructure projects and cultural programs, Timisoara catches the eye of both institutional and local real estate investors.

Cathedral, Timisoara

The investors’ focus on this city determines a dynamic land market. Data from local consultancy company Hitch & Mosher show that prices for permitted plots vary between 35-60 Euro/sqm for logistics developments, 113-350 Euro/sqm for retail developments and 155 up to 1,490 Euro/sqm for residential and mixed-use schemes.

Timisoara represents Romania’s third office market, following Bucharest and Cluj-Napoca. Some big occupiers such as Amazon, IBM, Microsoft, Wipro, Hella or Accenture established offices locally. The modern office stock amounts for 300,000 sqm with another 24,000 sqm in the pipeline.

Residential sector was affected by the same turbulences which impacted the national housing market in 2023. While demand for residential for sale is lowering, residential for rent is seeing a noticeable increase. Data from imobiliare.ro shows an increase in demand of 44% in the last two years for rented apartments.

The city enjoys one the highest retail densities from Romania with a ratio of 1,055 sqm per 1,000 inhabitants. The total modern stock amounts to approx. 265,000 sqm with some significant projects. Iulius owns here a 102,000 sqm development, the largest shopping area outside of Bucharest.

Timisoara is the second most developed industrial & logistics market outside of Bucharest, with a moder stock of 733,000 sqm and more than 40,000 sqm under development. All major players are present locally: VGP, Globalworth, CTP and WDP.

Hotel sector is one of the most under-developed, with only 331 rooms built during the last ten years. “Timisoara European Capital of Culture 2023” is expected to bring future opportunities. In this respect, four new 4* & 5* branded hotels, totalling 416 rooms, are under development with delivery dates between 2025 – 2026.

Under those circumstances, Timisoara remains one of the strongest real estate hubs outside Bucharest, set to enter a new development phase.

With an investment of 40 million euros, Continental opens a megafactory in Timisoara
With an investment of 40 million euros, Continental opens a megafactory in Timisoara 770 512 ROMANIA PROPERTY CLUB

11.11.2022

Continental has completed the construction of the third expansion of the electronic components factory in Timișoara, with an investment of approximately 40 million euros.

With the new investment, the production area will increase by more than 7,000 square meters, which means an increase of more than 60% of the space (about 18,000 square meters will be reached for production). Parking spaces, a technical area, offices and a green area were also added.

“What used to mean horsepower under the hood is now user experience. To meet the growing demand of our customers, we must pursue the most developed digitization, standardization and automation possible – and that is exactly what we are doing with our new mega factories strategy”, said Lucian Mărgineanu, the director of the automotive production unit in Timișoara. “Continuing the implementation of Industry 4.0 technologies represents another leap into the future. The digitization of production processes, as well as the use of state-of-the-art equipment, means another step in guaranteeing the quality of our products and services. Therefore, in the electronic components factory in Timișoara, we are focusing on a sustainable future”, he added.

Continental makes more than 17 million products a year in Timișoara

The electronic components factory in Timișoara produces over 17 million products annually. Airbag control units, electronic parking systems, control units for various technologies such as air suspension, power steering, suspension adjustment and dynamic load stabilization, Head-Up and Head-Up Combiner display units and on-board instruments are manufactured here. Over time, the factory developed in the direction of Industry 4.0, integrating equipment and technologies such as the innovative storage system, the trigeneration system and others.

Over 17,500 employees in Romania

The technology company founded in 1871 provides safe, efficient, intelligent and affordable solutions for cars, machinery, traffic and transportation. Continental achieved a turnover of 33.8 billion euros in 2021 and currently has more than 190,000 employees in 58 countries and markets. On October 8, 2021, the company celebrated its 150th anniversary.

Between 1999 and 2021, Continental invested over 2 billion euros in its activities in Romania. All three fields of activity of the company are represented in Romania. Continental owns six production units and four engineering centers in Timișoara, Sibiu, Carei, Nădab and Iasi. The company has a tire distribution center in Bucharest. At the end of 2021, Continental had more than 17,500 employees, of which more than a third were engineers and computer scientists, and will continue to hire based on future projects.

Iulius Town Timisoara reaches 80,000 sqm of premium office space
Iulius Town Timisoara reaches 80,000 sqm of premium office space 420 250 ROMANIA PROPERTY CLUB

04.10.2022

The fourth office building in the Iulius Town Timișoara complex is operational and consolidates the regional business hub in the urban regeneration mixed-use project to a total leasable area of 80,000 sqm and a 40-plus company from three continents community. United Business Center 0 has a leasable area upwards of 30,000 sqm and accommodates the offices of 15 companies operating in the IT & Outsourcing, automotive and service industry.

The fourth office building recently opened in Iulius Town Timișoara, the only urban regeneration mixed-use complex in the west of Romania. Comprising two levels of underground parking, semi-basement, ground floor, 15 floors of office space and two technical floors, United Business Center 0 (UBC 0) has a total leasable area of 30,000 sqm and accommodates the offices of 15 companies and 4,000-plus employees.

“The new building is a project adapted to market requirements, addressing a real need in the office segment for premium office spaces adjusted to the current reality and the employees’ expectations for their working environment. Beyond the state-of-the-art technological equipment, which creates optimal working conditions, and furnishings that encourage the exchange of ideas and socializing, it is also very important to note the services and facilities available to employees, which are increasingly relevant for companies. UBC 0 is fully leased to companies with expansion plans or newcomers in the region, who are joining the business community in Iulius Town Timișoara,” said Laurențiu Manea, Office Buildings Manager Iulius Town Timișoara.

The building accommodates the two-floor center of software developer Endava. Companies that occupy one floor each include the Porsche Engineering Romania development center, the software development center of Cognizant Softvision, and the office of market research and survey company Toluna România. The UBC 0 community also includes the offices of IT consulting & management company Infosys Consulting, the software development center of Haufe Group, the customer relations support service center Linde Global Services Romania, doctari group technology hub, Unbabel technology center in translation, IT Vizion industrial IT solutions center, the service center of brake technology developer TMD Friction, and the local office of the professional services firm PwC Romania.

The new premium office building is integrated in the Iulius Town Timișoara mixed-use complex, which provides immediate access to stores and services, themed restaurants and coffee shops, food court, offices of public institutions, kindergarten and primary school, the largest fitness center in Romania, multiplex cinema including the VIP dinner and movie all-inclusive concept, medical services and multiple leisure opportunities.

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