Office space demand in Bucharest drops by 25% in Q3

The total demand for modern office spaces rented in Bucharest decreased by 25% in the third quarter of this year compared to the same period in 2023, to 236,000 square meters, and the demand for new leases decreased by 11%, shows an analysis carried out by Colliers.

The medium-term outlook remains positive amid companies' efforts to bring employees to the office more often, Colliers analysis shows.

“The year 2024 marks three consecutive quarters with no completions of new modern office projects, the longest period without deliveries since 2005. Considering that the only project that will be delivered with certainty in the next two years is the AFI Loft, with more than 16,000 square meters, scheduled for completion at the end of this year, Colliers consultants expect the market to balance out considerably. However, although there are signs of a transition towards an owner's market in certain areas of Bucharest, the overall vacancy rate remains at around 15% across the city", the research states.

"In the last two years, following a trend that we also see in other Central and Eastern European countries, such as Poland, renewals represented a larger part of the demand than usual, up to around 50% from lease transactions signed in Bucharest, as many companies have postponed decisions on office leases due to uncertainty related to hybrid work. For comparison, in the years before the pandemic, the share of renewals was, on average, 28% per year, falling to 19% in 2011 and 22% in 2019", note the specialists.

Source: economica.net