116,000 sq. m of office spaces were leased in Bucharest in Q4 2023, thus bringing the total 2023 transactional volume to over 463,000 sq. m, an all – time annual take-up record, according to data from the Cushman & Wakefield Echinox real estate consultancy company. The volume in question increased by 43% y-o-y, with a 19% growth also being recorded when compared with the previous benchmark of 390,000 sq. m set in 2019.
The net take-up, excluding renegotiations and renewals of existing contracts, had a share of only 46% in the total leased volume in Q4 and 44% across 2023. As a result, companies leased new offices for at least 20,000 extra employees, primarily working in the IT&C, manufacturing, financial, retail and medical sectors.
The Cushman & Wakefield Echinox office agency was the market leader in Bucharest, closing transactions totaling 104,000 sq. m in 2023, having a share of 25.5% in the volume brokered by real estate agents. Moreover, the office team oversaw leasing transactions of more than 250,000 sq. m in the past 3 years in Bucharest.
Arghezi 4 (8,000 sq. m GLA) was the only office project delivered in Bucharest in Q4, thus bringing the total 2023 new supply to 110,500 sq. m, the lowest level since 2015.
The Bucharest office stock stands at around 3.4 million sq. m, with the pipeline being very low, as only 2 projects are currently under construction (amounting to 42,500 sq. m GLA), as a direct consequence of the ongoing urbanistic/permitting issues.
Only one new building is due to be delivered in 2024, namely AFI Loft (15,000 sq. m), the new supply for this year thus being at an all-time low.
The (contractual) vacancy rate of office spaces stands at 14.7%, down from 15.2% at the end of 2022. The vacancy rate should remain on this downward trend, especially when considering the uncertainties regarding the delivery of new projects, and mainly in buildings located in ultra-central and central locations.
Mădălina Cojocaru, Partner Office Agency Cushman & Wakefield Echinox: "While analyzing the office leasing market in the past 3 years, we noticed that more than 1 million sq. m of such spaces were transacted in Bucharest, representing approximately 33% of the total stock. This volume was practically recorded in a period characterized by new market fundamentals, where companies configured their strategies concerning their office space needs. This led to a downsizing of occupied areas for some tenants, but also to keeping or even expanding the leased spaces in the case of most occupants. We have also seen that close attention is being paid to the overall quality of office spaces, making the buildings located centrally and ultra-centrally, with access to public transportation and those that meet the ESG standards, more attractive to tenants and having the highest asking rents on the market."
The information provided by KomuniK
Cushman & Wakefield Echinox announced the completion of the sale of the Zenith Conference & Spa hotel in Mamaia, one of the top hospitality units on the Romanian seaside, to the owners of Steaua de Mare Hotels & Resorts, based in Eforie Nord. The property was previously controlled by the RC2 investment fund and Antares […]
Romanian president Nicușor Dan is scheduled to be in the United Kingdom on Tuesday and Wednesday, December 16-17, to meet with representatives of the business environment and the Romanian community. On the first day, the head of state will hold meetings with Romanian representatives from the business environment in the UK, as well as with […]
More than 300,000 older people living in Romania’s urban areas are expected to spend Christmas alone, according to data cited by the NGO Niciodată Singur – Friends of the Elderly, which recently launched its annual holiday campaign aimed at tackling loneliness among seniors. The initiative, titled “Be the Carol That Breaks the Silence,” is based […]
The Romanian Senate adopted a simple motion initiated against environment minister Diana Buzoianu on Monday, December 15. The motion passed after the Social Democratic Party (PSD), the largest party in the governing coalition, joined the far-right opposition party AUR in the initiative. The vote for the simple motion was carried after a no-confidence motion filed […]
Romanian farmers are set to benefit from improved access to financing following a EUR 25 million loan granted by the European Investment Bank (EIB) to Agricover Credit IFN SA, aimed at supporting micro agricultural businesses across the country. The funding will be provided under the InvestEU mandate and is intended to boost productivity and promote […]
Romanians rank among the most satisfied homeowners in Europe, but rising housing-related costs continue to put significant pressure on household budgets, according to the RE/MAX European Housing Trend Report 2025. The study showed that 81% of Romanians are happy with their living situation, above the European average of 77%, while 83% live in owner-occupied properties, […]
