by Property Forum | Office

The Romanian office market registered a 36% decrease in 2020 from the record level of 470,000 sqm recorded in 2019 to 300,000 sqm, JLL data shows.

Office market was one of the most affected segments of the real estate market due to the pandemic situation. And the Romanian market makes no exception. The total take-up registered last year was 300,000 sqm. Even if the number and, implicitly, the volume traded in 2020 decreased significantly compared to 2019, the average of a transaction is higher than last year, respectively 1,652 sqm vs 1,560 sqm.

Net demand totalled almost 120,000 sqm, respectively 40% of the total area closed in 2020. The rest of the transactions were renewals, renegotiations and relocations in competitive stock. For comparison, in 2019, net demand accounted for almost 60% of the total volume of closing transactions.

“Transactions for almost 120,000 sqm of office space representing new demand have been closed for at least 12,000 new employees. It is less than in 2019, but it is encouraging to see companies that have continued to expand and create new jobs despite the uncertainties and changes that have appeared on the labour market in 2020 ", said Marius Șcuta, Head of Department of offices and representation of tenants JLL Romania.