The annualized rate of new demand for offices in Bucharest is comparable to the value recorded in 2019, even though it is about a third below the record volume of 2017, according to research by real estate consultancy Colliers.
However, the office deliveries between 2017 and 2019 averaged at 200,000 sqm compared to the expected values of around 120,000 sqm for the 2022-2024 interval.
“Currently, we are not yet at 2017-2019 levels of demand, but we are closer to those values than we are to pandemic lows. This return came with a relatively small volume of new deliveries, which translates into less options for tenants when they decide to rent office space", says Victor Coșconel, Head of Leasing | Office & Industrial Agencies at Colliers.
After integrating remote work into the usual working model of most companies, the office market will change drastically, suggest Colliers’ experts. However, the transition to a hybrid way of working will not necessarily mean a reduction in occupied areas, given that companies will rather aim to maximize the quality of time spent by employees in the office.
In the longer term, the positive factors that have pushed Bucharest to become one of Europe's most exciting and dynamic service centers are maintained - relatively low salaries compared to Western Europe coupled with good technical and language skills.
Colliers’ consultants estimates that around 130,000 sqm of new modern offices could be delivered this year, with a total of roughly 360,000 sqm for the 2022-2024 period. The total office stock in Bucharest reached 3.3 million sqm at the end of Q1 and has the potential to climb to 4 million sqm by the end of this decade.
