Class A offices in Bucharest have some of the cheapest rents compared to other large European cities with strong business centres – Property Forum writes.
Bucharest and Budapest are on the two ends of the scale
According to the report issued by BNP Paribas Real Estate Alliance members, at the start of 2022 premium office rents in Bucharest stood at €18.5 per sqm/month, compared to Prague and Warsaw with €24 per sqm/month. In Vienna and Budapest, rents for prime spaces amount to €26 per sqm/month.
In Bucharest, rents for offices start from €8 per sqm/month in the Pipera-Voluntari area and reach €12.5 per sqm/month in the southern part of the city. The biggest rents are paid by companies leasing offices in the business districts located in the northern and central-western parts of Bucharest. – writes Property Forum referring to the report.
Lack of newbuilds might reshape the market
According to Fortim Trusted Advisors, the office market is stable in premium areas, such as the Central Business District (CBD) and Floreasca-Barbu Văcărescu, where no new office buildings are expected to be delivered soon. With the landlords maintaining rents from past years and also offering additional benefit packages the overall decrease in rents is by 10-15%.
Rent prices were stable in both Class A and B office projects at the start of this year, according to Fortim TA, but Nicolae Ciobanu, Managing Partner, Head of Advisory forecasts: with an expected 40% less space to be put into use than in 2021, at the end of the year the market may experience another relationship between demand and offer and implicitly another level of rents.