Demand for office space in Bucharest stagnated last year

Only one office building, Equilibrium 2, with a leasable area of about 19,500 sq m, was delivered in Q4 2022

Total demand for office space in Bucharest stagnated compared to the previous year, reaching 286,100 sq m, a level comparable to 2021. At the same time, net demand increased only slightly, by 3%, to 140,500 sq m.

In the last quarter of 2022, total demand for office space amounted to almost 85,000 sq m in Q4 2022, similar to Q4 2021. Net demand amounted to 34,800 sq m, also very close to Q4 2021.

Just over 25% of the total demand for office space in Bucharest in 2022 came from the IT sector, followed by the professional services sector (12%) and the financial-banking sector (almost 9%).

In 2022, office buildings totalling a leasable area of 124,500 sq m were delivered in the capital city, representing only half of the previous year’s deliveries (245,800 sq m).

As expected, the vacancy rate started to decline in the last quarter of 2022, from 13% in Q3 to 12.54%. Most likely, the vacancy rate will continue to decline slightly throughout 2023.

Rents were maintained in Q4 at the same level as in the previous quarter, with prime rent (for the best spaces) remaining at €19 per sq m per month. Further rent increases are possible in the first part of 2023.

SEE ALSO: The first signs of a come-back for the Bucharest office market

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