Bucharest office market: Demand exceeds the offer over 4 times

18-07-2017

Net take-up of office spaces in Bucharest amounted almost 80,000 sqm in the first half of the year, meaning that an additional 10,000 jobs were created, given that companies usually allocate for each employee some 8 square meters.

In total, gross take-up reached in this period of time 185,000 sqm, a slightly decrease when compared to first 6 month of last year (192,000 sqm).

Development activity remains low, with only 43,000 sqm of new office spaces delivered in H1 in Bucharest out of 140,000 sqm expected for the entire year. Total demand exceeded the new offer over 4 times.

The largest project completed this semester was Timpuri Noi Square, developed by Vastint in the South part of Bucharest, with an area of 33,000 sqm.

Overall, the current modern stock is of over 2.43 million sqm, and due to continued strong take-up and limited new supply, the H1 vacancy rate decreased to 9%, a post-crises low.

”Romania continues to be attractive for the investors – either existing or new comers – to open new offices in Bucharest or to add new business lines to their existing operations. In the first half of the year, over 60 companies leased new office space for their businesses in Bucharest and other 40 have renewed their existing leasing contracts. This is proof of the confidence that foreign investors have in the local market”, comments Marius Șcuta, Head of Office Agency and Tenant Representation JLL Romania.

Depending on the area, a quarter of the leasing contract signed in this period was for the offices located in Floreasca-Barbu Vacarescu area, followed by CBD (Piața Victoriei – Piața Charles de Gaulles) and West and Center-West areas.