CBRE: Romania’s modern stock of office spaces reached over 4.3 million sqm in Q2; 335,300 sqm to be delivered by 2023
With 76 percent of the modern stock of office spaces in Bucharest, the office segment has reached over 4.3 million sqm all over the country in the first semester of 2022, according to a report launched by CBRE Romania. The vacancy rate in the office segment is only 12 percent, on a decreasing trend compared to the same period of last year.
Bucharest is the leading city on the office segment, with a total modern stock of 3.3 million sqm, in the context of a total population of 2.1 million and an unemployment rate of 5,1 percent. Hosting 31 universities, both public and private, Bucharest provides over 170,000 graduates each year, contributing to the city’s appeal as a destination for companies looking to extend their business in Romania.
The Capital is followed by Cluj-Napoca (350,000 sqm), Timisoara (294,000 sqm), Iasi (205,000 sqm), and Brasov (155,000 sqm). At the same time, the fastest growing market is represented by Bucharest, the modern stock being 10 percent higher in Q2 compared to the same quarter of 2021.
Cluj-Napoca has over 740,000 inhabitants and an unemployment rate of 2,1 percent. 72,000 graduates complete their studies each year in the city’s 9 public and private universities. Timisoara’s population exceeded 700,000 people, while the unemployment rate is 1,8 percent. With 7 public and private universities, Timisoara delivers over 44,000 graduates yearly.
“After a period of stagnation during the pandemic, the office segment is recovering strongly. We have noticed the increase of office rental transactions and demand in the main cities of Romania. The growth is supported by the hybrid resumption of office activity, by the expansion of companies and by the entry of new companies on the market. Regional cities office market dynamics are showing new migration patterns in a tight labor market and are causing companies to think more broadly about location, confirming the hybrid workforce distribution”, says Tudor Ionescu, Head al A&T Services Office at CBRE Romania.
The CBRE report shows that, with 335,300 sqm which will be added to the current stock by 2023, the office segment will reach 4.7 million. sq m at the beginning of next year, growing with 9 percent. Therefore, Bucharest will have another 135,300 sqm. of office spaces, which ranks the Capital city on the first place in terms of new developments, followed by Iasi with new 80,000 sqm, Cluj-Napoca (55,000 sqm), Timisoara (40,000 sqm), and Brasov (25,000 sqm).
By vacancy rate, Cluj-Napoca and Iasi have registered the highest level of leasing, with only 8 percent vacancy rate each of total stock in Q2. Next is Brasov with 13.7 percent vacancy rate, followed by Bucharest (13.9 percent), and Timisoara (15 percent), which shows a high demand for renting office spaces.