The office leasing market in Romania has recorded a fall of 18% in gross take up in the first half of 2022 compared to the same period of last year, although Bucharest has seen a slight increase, according to a report by real estate consultancy JLL Romania.
Timișoara had by far the largest share in office leasing across regional cities with almost 20,000 sqm, or approximately 54% of total office transactions in major regional cities. The second largest market is Iași, with 10,500 sqm, followed by Cluj-Napoca and Brașov.
Demand for offices in large cities outside Bucharest was dominated by IT companies that had a share of 60% of the leasing activity.
"The real estate market in the regional cities continues to mature and remains attractive for companies in the pursuit of new talent pool and competitive wages, while accommodating millennials migratory patterns. Encouraged by the adoption of new ways of working, co-working and flexible office space schemes are expected to emerge in the regional landscape in the coming period,” said Mădălina Iconaru, Consultant Office Agency JLL Romania.
Monthly rents were stable in the first semester, while Cluj-Napoca was the market which saw an increase of €0.5 per sqm.
Class A rents vary between €14-15 in Cluj, €13.5-14.5 in Iași, €13-14 in Timișoara and €12.5-13.5 in Brașov.
Total stock is close to 1 million sqm of modern office spaces in the four major regional cities, and pipeline remains consistent, according to JLL’s consultants.
