Second-class office zones face decline in rents

RENTAL DROP TEMPERS Rents for office spaces will keep falling this year in the second-most attractive areas of Bucharest and on the city outskirts, but the decline will be slower than in 2009, according to real estate consultants BNP Paribas Real Estate

June 2010 - From the Print Edition

Areas where the infrastructure is poor and the distance between the offices and public transport is larger are more prone to price decline than the centre of Bucharest. Secondary areas include Pipera, Ilfov county and the east and south of the city.
However the real estate agency expects rents to remain stable for office spaces located in central areas.
The average rent for the A class offices located in the centre ranges from between 190 and 220 Euro per sqm per year, while in the secondary areas of Bucharest the rents stand between 120 and 140 Euro per sqm.
Meanwhile the transaction volume of office spaces in Bucharest increased by 12.5 per cent in the first part of 2010, against the first part of 2009, according to real estate consultants CB Richard Ellis.
The pace of new office space deliveries declined at the same time by eight per cent, which lead to a more stable average non-occupancy rate, of 16.3 per cent.
The non-occupancy rate is lower in the north of Bucharest - at 10.6 per cent - and in the centre, where it stands at 14 per cent, while in secondary areas such as Pipera and the east of Bucharest, it can reach 25 per cent.
In the first trimester of 2010, 72,300 sqm of new office spaces was delivered in Bucharest and another 200,000 is expected by the end of the year.