Demand on Bucharest’s office market, down 45% in H1

The coronavirus pandemic affected the Bucharest office market as well, the demand on this segment decreasing by 45% year-on-year in the first half of 2020, according to an analysis by the real estate consulting company Avison Young, quoted by Hotnews.ro.

A total of 120,000 sqm of office space were traded in the first six months of the year. The net demand amounted to 72,000 sqm (approximately 65%) and is divided between new demand (71%) and relocations (29%).

Comparing the structure of new demand registered in H1 2020 with the situation in H1 2019, the area rented by companies interested in opening new operations in Romania decreased by 80%. On the other hand, relocations from old office spaces, such as villas or apartments, to modern office spaces increased by 9%, Avison Young said.

The Central-West area remained the most popular among companies interested in new office space, attracting a third of the volume of net demand registered in Bucharest in the first half of this year. The North (18%) and the South (13%) areas are next in the top.

At the same time, renegotiation transactions totaled 39,500 sqm (down 25% year-on-year). Most of the spaces for which the contractual terms have been renegotiated are found in the Central-West area and the Piata Presei Libere-Expozitiei area.

The good news is that developers are not discouraged and continue to build their projects. By the end of the year, four other large projects will be completed in areas such as West-Center, Barbu Vacarescu, or Floreasca.

In the first half, the stock of modern office space reached 3.22 million square meters, representing an increase of 3% over the same period last year. Six office projects with a total leasable area of 107,000 sqm were completed in the first six months of the year.

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