The net take-up (excluding renegotiation contracts) in Bucharest and major regional cities – Cluj-Napoca, Timișoara, Iași, and Brașov – totaled approximately 1.06 million square meters, between 2020-2024. This area is comparable to the total office stock in the four regional cities or 30% of the stock in Bucharest.
Considering the average office space allocated per employee of 8-10 square meters, it can be concluded that companies have leased office space for at least 100,000 employees in the main cities in Romania over the past five years.
With nearly 7% contribution to Romania’s GDP overall formation in 2024, the IT sector generated over 35% of the new demand, representing 375,730 square meters of space contracted nationwide in the last five years, making it by far the most dynamic sector.
In second place, but significantly behind the leader, ranked manufacturing & industrial companies (18.1% contribution to Romania’s GDP) with 9.2% of the volume (98,000 square meters), followed by pharma & medical sector with 9% of the total (95,200 square meters).
The top five also include professional services operators, with nearly 86,000 square meters leased, and financial sector – banks, insurance, etc – with over 75,000 square meters contracted.
The total office space transacted (including renegotiation contracts) during the analyzed period exceeded 2 million square meters, with IT companies responsible for over 40%.
The stock of modern offices in Bucharest and other university centers in the country – Cluj-Napoca, Timisoara, Iasi, and Brasov – amounts for approximately 4.51 million square meters, while projects totaling 390,000 square meters are currently in various stages of development, due to be deliver over the next five years.
In these circumstances, the average vacancy rate of office spaces in the five analyzed cities stands at 13.8%, with the lowest level recorded in Cluj-Napoca – 6.6%, and the highest in Iași -19.4%. In Bucharest, the average vacancy rate dropped to 14.2% at the end of last year.
In terms of prime rents over the past five years, in Bucharest, at the end of last year, they reached a maximum level of €21/sqm/month, representing an increase of 10.5% compared to 2020. In regional cities, rent growth was up to 13%, to a maximum level of €17/sqm/month.
Madalina Cojocaru, Partner Office Agency, Cushman & Wakefield Echinox: “IT companies have continued be the main driver the office leasing market in Romania in the last five years, even though there have been adjustments in space requirements within this sector. With a significant contribution to GDP and continuous expansion, the IT sector has demonstrated a constant need for modern offices, thus stimulating the real estate market. This trend reflects not only the growth of the tech industry but also the transformation of the work environment, where offices become hubs for innovation and collaboration. Currently, the supply of office spaces in central areas of Bucharest is increasingly limited, while demand remains constant. This situation highlights the need for new developments in areas well-connected to public transportation, meeting current work standards. Calea Buzesti, for example, has the potential to become a new attraction for companies and investors following a gentrification process.”
Cushman & Wakefield Echinox is a local real estate advisory firm and the exclusive affiliate of Cushman & Wakefield in Romania, independently owned and operated. The team of over 60 professionals and associates provides services to investors, developers, owners and tenants.
Cushman & Wakefield (NYSE: CWK) is one of the global leaders in commercial real estate services, with 52,000 employees in 400 offices in 60 countries. With revenues of $9.4 billion, the company’s core services are: asset and investment management consulting, capital markets, leasing, property management, tenant representation, project and valuation services.
