The total office stock in Bucharest reached 3.3 million sqm at the end of the first semester of 2022, with just one new building (AFI Tech Park – phase 2) spanning 25,000 sqm being completed in the second quarter of this year.
This delivery pushed forward the Center-West area to first place in the top Bucharest office hubs, the stock of 579,600 sqm overtaking Floreasca - Barbu Văcărescu area, which sums up 569,700 sqm, according to data from real estate consultancy company Cushman & Wakefield Echinox.
The new net take-up (excluding renewals/renegotiations of existing contracts) had a consistent share of 66% of the total transacted in H1 2022 versus 59% in H1 2021). Thus, the overall vacancy rate fell to 14.9%, a level which is partly explained by the difference in vacancies between A-class (12.6%) and B-class (22.7%) buildings.
The prime headline rent in Bucharest has seen a small increase in Q2 2022, to a level of around €19.00/sqm/month in the CBD, the first increase after a period of six quarters of stagnation at €18.5 sqm/month. The ascending trend could extend until the end of the year in other submarkets in Bucharest, known as important office hubs, such as the Center and Floreasca – Barbu Văcărescu.
“Office developers in Bucharest are watching very carefully what is happening at the City Hall because they are willing to invest in new projects, but there is no clear visibility of what will happen. There are developers who either already own the land, but are not in the position to authorize it, or are willing to acquire new land, but investment decisions are difficult to be made mainly due to the prolongated uncertainty related to PUZs approvals,” said Mădălina Cojocaru, Partner Office Agency Cushman & Wakefield Echinox.
At present, projects totaling 134,000 sqm are under construction in Bucharest, which are to be completed in 2022 and 2023. This level is far below the average of deliveries in recent years, with One Cotroceni Park II, U-Center II or Equilibrium II being the most important buildings slated for completion by the end of next year.
