Around 500,000 sq. m of office spaces are unoccupied in Bucharest, reflecting a vacancy rate of 15.2%, the highest availability being reported in the Pipera North, Center-West, and Floreasca – Barbu Vacarescu submarkets.
The Romanian investment market recorded transactions of over 1.25 billion euros last year, well above the 890 million euros result in 2021, ticking the highest value since 2007, according to the 2022 Annual Report released by Colliers. The market volume was boosted greatly by the closing of CA Immo’s divestment of their office portfolio in Romania, a 377 million euros deal, which has also set a new record for the largest deal closed on the local market.
Given the generally difficult economic context, 2022 was decent enough for the Bucharest office market in terms of demand, with the first half of the year very solid and comparable to the good times before the pandemic, while the second semester was rather comparable to 2021. Overall, total demand saw an increase of some 6% versus 2021, to around 279,000 square meters, while new demand jumped some 17% compared to 2021, to 122,000 square meters, according to the 2022 Annual Report released by Colliers.
The real estate market hit a record investment in 2022, when it managed to exceed a historic milestone of 1.25 billion euros, an increase of 36% compared to the previous year, according to the latest CBRE report - "Market Outlook 2023".
French engineering and construction group Egis has rented 1,100 sqm office space in America House in Bucharest. The Romanian branch of the company will move into its new headquarters in the summer of 2023.
Global Vision has acquired Nova Building – an office property located in Northern Bucharest (Dimitrie Pompeiu area), with a constructed area of 8,300 sq.m. Following the acquisition, the building will be refurbished to incorporate sustainable features, it will undergo a rebranding process, and its new name will be Corner Office Building. The overall value of the investment is expected to exceed 12 million euros.
Romania’s real estate market has enough resources to continue developing in 2023. This is thanks to the fact that a 3-4% expansion rate for the local economy is achievable even in the current context, where the conflict in Ukraine and the full effects of monetary policy tightening in the Eurozone and the US have not yet been fully felt, Colliers consultants predict.
The total volume invested in income-producing real estate assets – office, retail, logistics and industrial spaces and hotels – in the Central and Eastern Europe returned to growth last year, a positive evolution mainly driven by the activity recorded in Romania and Slovakia.
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