Bucharest's office market is experiencing a major shift, marked by limited supply and increasing rental costs for prime spaces, according to a report by Colliers.
Rents for top-tier office buildings in central Bucharest have surged, now reaching up to €22 per sqm and in some instances, even exceeding this figure. Companies seeking to relocate or expand are encountering fewer options and higher expenses due to the limited availability of modern spaces.
Adding to the supply concerns, the development of new office space has seen a sharp decline. After an average of 160,000 sqm delivered annually over the past decade, 2024 saw a steep decline, with only 16,500 sqm completed and just 6,500 sqm planned for 2025.
“These figures, well below previous averages, clearly show that the supply of modern office space is increasingly constrained, taking into account both upcoming and existing projects. As a result, companies seeking to expand or relocate are finding it more difficult to identify suitable spaces. Unless Romania experiences a significant economic correction, which neither we nor most economists anticipate, we expect to see upward pressure on rents in the near future,” says Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.
The Colliers analysis also highlights a growing divide within the market. Approximately 20 buildings, accounting for 23% of Bucharest’s total leasable office area, are struggling with high vacancy rates, averaging 33%. Conversely, the remaining 186 buildings, representing 77% of the market, record a significantly lower vacancy rate of just 7%.
