Bucharest sees office leasing surge in H1 2024, accommodating 8,000 new employees

Bucharest’s office leasing market saw a significant rebound in the first half of 2024, with companies leasing enough office space to accommodate around 8,000 new employees, according to data from Cushman & Wakefield Echinox. The net take-up of office space in the city surpassed renewals and renegotiations for the first time in two years, positively impacting the vacancy rate as no new office projects were delivered during this period.

In Q2 2024 alone, nearly 77,000 square meters of office space were leased, with net take-up accounting for 62% of the total transactional volume—the highest quarterly share since Q1 2022. For the first half of the year, total leasing activity reached 168,000 square meters, just 11% lower than H1 2023. Of this, 82,100 square meters were net take-up, with the average new lease transaction exceeding 1,100 square meters.

The medical and pharmaceutical sectors were the most active, securing 19% of the net leased area, followed by IT&C companies, which took up 18%. Other sectors such as professional services, private education, and manufacturing also contributed to the strong leasing activity.

Madalina Cojocaru, Partner at Cushman & Wakefield Echinox, highlighted the improved office leasing activity across Europe, attributing the rebound to companies adapting to hybrid work models and the return of more employees to the office. She noted growing demand for premium A-class buildings in central locations like Piata Victoriei, Aviatorilor, Floreasca, and Dorobanti, where vacancy rates have dropped to 5% or lower.

Bucharest’s overall vacancy rate continued its downward trend, reaching 14.2%, with further declines expected by the end of the year. Despite the positive leasing momentum, new office supply remains limited, with only 88,400 square meters under construction. High financing costs and ongoing urban planning issues are expected to keep supply low in the near future.

The prime headline rent in Bucharest’s Central Business District (CBD) saw a slight decrease to €21.50 per square meter per month in Q2, while other submarkets remained stable.