In Q3 2019, 66,000 sqm of new modern office buildings were handed over in Bucharest and there are big chances to break the 300,000 sqm threshold by the end of the year, according to Colliers International. The higher vacancy and infrastructure discrepancies will likely support a more thorough segmentation of the market, with the gap between well-located buildings and those at the opposite spectrum likely to increase over the medium term.

Work is well underway on site at Forte Partners’ U Centre, a new, eight-floor office development in the Bucharest. The investment is valued at €200 million.

The first boxes with orders from a Polish clothing manufacturer have already set off from the warehouse just outside Bucharest. Thanks to the launch of the fulfilment centre with an area of 22,000 sqm LPP is now able to do deliveries to customers from South-Eastern Europe even the next day after the transaction. The warehouse will handle online orders for all five brands of LPP: Reserved, Cropp, House, Mohito, and Sinsay.

Expo Market Doraly, one of Romania’s largest shopping parks specialized in home items and food products, located in Afumati, near Bucharest, announced plans to develop a 10,000 sqm retail park following a €6 million investment.

Spanish-based developer, Gran Via Real Estate, completed the residential project Aviatiei Apartments with 291 units in Bucharest, followinga total investment of €17 million (construction cost, without land value).

The Asset Services department of Cushman & Wakefield Echinox has taken over the administration of the Colosseum shopping centre since October 1st, thus expanding its portfolio in Bucharest with a project in full expansion.

JLL has completed the first phase of the modernisation of the Liberty Center shopping centre in Bucharest, owned by three banks (Alpha Bank, Bank of Cyprus and Eurobank) following the insolvency of developer Mivan Kier. Occupancy rate at Liberty Center has reached 91%, following a €400,000 investment.

Bucharest’s modern office stock will increase by over 500,000 sqm in 2019 and 2020. According to Colliers International Romania, these dynamics of the office market could generate variations in the office buildings’ market values of plus or minus 5% during the indicated period. To measure these possible changes, three factors were considered: the average vacancy rate, the level of the incentives packages that owners offer to tenants and yield compression.

One United Properties, a company with Romanian capital, has ongoing office projects of 150,000 sqm for the following three years, totalling investments of €220 million.

Having benefitted from predominantly business-driven demand in the past, Bucharest is currently establishing itself as a popular tourist destination. The analysis of Christie & Co shows a positive growth trend both in supply and demand, resulting in a continuously improving performance of Bucharest’s hotel market.