The ongoing construction of office projects in Bucharest fell by around 50% year-on-year by H1 2024, to 46,900 sqm, with their completion scheduled for 2024-2026, according to an iO Partners report.
At the same time, there were no new deliveries in Bucharest’s office market during H1 2024, compared to 69,000 sqm at the same period of last year. By the end of this year, only one office project with a leasable area of 15,500 sqm will be completed locally.
The biggest share of projects under construction is based in the Floreasca-Barbu Văcărescu area (67%), while Center-West holds the rest of the surface under development.
The report further shows that 156,400 sqm was leased in Bucharest in H1 2024, which is 5% less than during the same period of 2023. Net take-up (excluding renewals and relocations inside the competitive stock) amounted to 61,300 sqm, 25% over H1 2023.
Prime rents have remained stable in the CBD area at €22.00 per sqm per month but were up 10% year-on-year.
In the Center submarket, prime rents currently stand between €16 – 20 per sqm per month. In the outer submarkets, rents reached €9.00 – 14.00 per sqm per month.
On the investment side, offices recorded deals with a combined value of €15.8 million, while office yields were stable at 7.75% by the end of H1 2024.
At the end of H1, Bucharest's office stock totaled 3.39 million sqm, with the total vacancy rate falling by 90 basis points to 13%.
