The total demand for modern office spaces rented in Bucharest decreased by 25%, in the third quarter of this year compared to the same period in 2023, to 236,000 sq m, and the demand for new contracts rental decreased by 11%, shows a specialized analysis published on Tuesday.
According to Colliers data, however, amid companies’ efforts to bring employees to the office more often, the medium-term outlook remains positive.
Also, real estate consultants note that, in certain areas of Bucharest, the signs of transition towards a more favourable market for owners are maintained.
„The year 2024 marks three consecutive quarters without completions of new modern office projects, which represents the longest period without deliveries since 2005. Considering that the only project that will be delivered with certainty in the next two years is AFI Loft, with over 16,000 sq m, scheduled to be completed at the end of this year, Colliers consultants expect the market to balance out considerabl.y However, although there are signs of a transition towards an owner-occupied market in certain areas of Bucharest, the overall vacancy rate remains at approximately 15% at the level of the entire city,” the research shows.
At the same time, the market is dominated by tenants, who occupy areas between 1,000 and 2,000 sq m.
„In the last two years, following a trend that we also see in other Central and Eastern European countries, such as Poland, renewals represented a larger part of the demand than usual, up to about 50% of rental deals signed in Bucharest, as many companies postponed decisions on office leases due to the uncertainty of hybrid work. By comparison, in the years before the pandemic, the share of renewals was, on average, 28% per year, decreasing to 19% in 2011 and 22% in 2019,” experts note.
Overall, in the third quarter of this year, compared to the same period in 2023, the total demand for leased modern office space in Bucharest fell by 25%, to 236,000 sq m, and the demand for new leases decreased by 11%, to 82,000 sq m.
Colliers is one of the global leaders in real estate consulting and investment management services. With operations in 66 countries, the 22,000 specialists work together to provide expert advice for clients.
AGERPRES
