Three out of Europe’s top five markets with the best location for industrial or logistics facilities were in Central and Eastern Europe, according to the European Distribution Report 2008 published by real estate consultant Cushman&Wakefield (C&W).
Belgium retained the top spot in the rankings, published by C&W every two years, and is followed by the Netherlands, Hungary, the Czech Republic and Poland.
The report covers 25 countries, compared with 15 in 2006, and another Eastern European market was also the highest new entry - Slovakia in ninth.
Reflecting the expansion of the European Union and the growth patterns of international business, most new entries are along Europe’s eastern boundaries, C&W said.
The overall ranking is based on the analysis of a range of weighted cost/benefit factors: rents, labour costs, congestion, the size of freight markets by type, proximity to key markets and population densities.
Bulgaria was ranked third from last at number 23, ahead of only Ireland and Sweden.
Bulgaria attracts industrial/logistics developers mostly with low labour costs. Rent levels rank the country mid-table with some experts considering the country to be an expensive logistics destination compared to other European countries.
The annual rent costs in Bulgaria are around 72 euroa sq m. Top-ranked Belgium offers 50 euro a sq m. Neighbouring Romania is at 48 euro a sq m.
Bulgarian land prices are also among Europe's highest at around 300 euro a sq m. That compares with Belgium at 30-190 euro, the Czech Republic at 45 euro, Hungary at around 70 euro and Poland at 40-65 euro.
