With 32 public and private universities, the number of graduates in Bucharest exceeds 170,000 young people annually in Bucharest, which contributes to the attractiveness of the city as a destination for companies that want to expand their presence in Romania.
"Bucharest remains the first option for companies analyzing the opportunity to expand their operations in our country. Right now, we have discussions with several tenants interested in entering Romania and who plan to recruit about 2,000 people in total, which means a cumulative area of offices of almost 20,000 square meters", stated Alina Calciu, Head of Advisory & Transaction Services, Occupier, within CBRE Romania. "At the same time, regional cities remain attractive to companies with a consolidated presence in the Capital and needing to expand further. We notice a high appetite for both already established destinations, such as Cluj-Napoca, Timișoara or Iasi, as well as for newer markets, such as Brasov, Craiova or Sibiu”, added Alina Calciu.
In Timisoara, the modern stock of office space was estimated at around 250,000 square meters, at the end of the third quarter of 2019, other more than 110,000 square meters being planned for the end of 2019 and the course of 2020, according to the Romania Office Destinations report. The population of Timișoara has exceeded 700,000 inhabitants, while the unemployment rate is below the 1% threshold, falling to 0.7%. With seven public and private universities, Timisoara delivers more than 41,000 graduates annually.
In Cluj-Napoca, the stock of modern spaces has already exceeded the 200,000 square meter threshold and buildings will be delivered in 2020 with an area of 23,000 square meters. The city has almost 730,000 inhabitants and an unemployment rate of 1.2%. The number of graduates per year is close to 70,000 people, with nine public and private universities.
"The growing interest for large university centers is increasingly reflected in property prices. If in Bucharest the prime rents remain stable, around 18.5 euros / square meter / month, in Cluj-Napoca, the requested rents have already reached 15 euros / square meter / month, while in Timisoara and Iași, oscillates around the level of 14 euros / square meter / month, and in Brașov it goes down to 13 euros / square meter / month. Also, the yields of office buildings in Cluj-Napoca (8%) are closer to Bucharest (7%), while for Timisoara, Iași and Brașov have similar values (8.5%)”, said Daniela Boca, Head of Research, CBRE Romania, coordinator of the Romania Office Destinations report. (source: CBRE)
