New demand for office spaces in Bucharest soared 47% to 104,000 sqm year-on-year in 2021, while total demand volumes gained 23% to 263,000 sqm, according to real estate consultancy Colliers.
On this backdrop, managers are still exploring the new post-pandemic work system, with the mix of office and remote work being decided by each company.
“Compared to previous years, 2021 remains a relatively weak year, but the second half provided encouraging signals from both companies and signed contracts. Thus, the new demand in the fourth quarter was in line with the quarterly average recorded from 2015 to date. The total value of completed Colliers-mediated office rental transactions in 2021 exceeds 43,000 sqm, an obvious increase compared to 2020. It is also important to point out that the calculation methodology did not include areas returned to owners or other transactions in the process of completion," said George Didoiu, Director of Tenant Services Office 360 at Colliers.
He added that demand has re-emerged from large international companies announcing that they want to open offices in the Romanian capital. Meanwhile, many of the existing firms are starting to resume their expansion, and this new demand should compensate for any reduction that may result from the adoption of a hybrid working model. Other companies moved to reduce their office lease contracts or sublet some of the spaces.
The office stock in Bucharest reached 3.2 million sqm at the end of 2021, with 250,000 sqm in fresh stock delivered last year. Total office supply in Bucharest amounts to around 1,300 sqm per thousand inhabitants.
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