Gross demand for office spaces in Bucharest hovered around 164,000 sqm in the first half of 2023, up by 22% compared to the same period of last year, while deliveries of new office buildings will remain on a downward trend by year-end, according to data from iO Partners.
In the second quarter of 2023, net demand for offices reached 28,300 sqm, with more than half of the lease deals covered by renewals and renegotiations of existing contracts.
On the development side, new deliveries of office projects fell 29% year-on-year to 69,500 sqm by the end of June 2023. By the end of this year, completions of new projects will reach 110,000 sqm, marking a fall of 11% versus 2022.
"A topic of current interest is related to companies whose leases expire in the next 2-3 years. It is essential to be proactive in looking for ideal relocation or renegotiation solutions, considering that the number of projects under construction is low, and the options available may be limited and opportunities for renegotiation reduced,” said Maria Florea, Key Client Director at iO Partners Romania.
On this backdrop, the office vacancy rate went up slightly to 12.8% at the end of H1 2023, with a stable outlook by the end of this year.
Meanwhile, monthly prime office rents stood at around €20 per sqm and further gains are possible in the second half of 2023 due to a limited supply of new projects.
