The office space market across CEE experienced a slowdown in demand during Q1 2025, with less than 30,000 sqm of office space delivered across the region, according to Cushman & Wakefield Echinox.
The total take-up in the CEE region reached approximately 500,000 sqm, marking a 40% decrease quarter-over-quarter and a 2% decline year-over-year. In Bucharest, the gross take-up was 51,300 sqm in Q1 2025, a 44% year-over-year decrease. However, the consultancy forecasts an acceleration in demand starting in the second half of the year, with several major deals expected to be signed.
Mădălina Cojocaru, Partner Office Agency at Cushman & Wakefield Echinox, said: "The office market in Romania is going through an adjustment period, in a regional context dominated by caution and decision-making postponements from the tenants. The lower take-up at CEE level reflects a more reserved attitude on the market, mainly due to economic uncertainties. However, there has been a noticeable recovery in Bucharest, especially when it comes to the net take-up (relocations, expansions and new entries on the market), which had its highest share in the last three years in Q1. We expect the leasing activity to intensify in H2, as companies resume their expansion or relocation plans. Additionally, the lack of significant deliveries in 2025 will likely result in lower vacancy rates and in rental growth in the most sought-after submarkets."
Despite the regional slowdown, Bucharest's net take-up reached its highest share since Q1 2022, accounting for 64% of the Q1 demand. The vacancy rate in Bucharest continued its downward trend, reaching 13.6%, the lowest level since Q2 2021.
This rate is expected to decrease further, as no large or medium-sized office buildings are scheduled for completion in 2025.
Across the CEE, Sofia, Bratislava, and Budapest reported the highest vacancy rates, while Prague had the lowest. New supply was limited to smaller buildings in Prague, Warsaw, Budapest, and Sofia.
Looking ahead, a higher number of office developments are expected in 2026-2027 in both Bucharest and the broader CEE region, although activity is anticipated to remain below usual levels.
