Office demand in Bucharest, down by half in H1 due to pandemic

The office space rented in Bucharest in the first half of this year totaled approximately 100,000 square meters (sqm), down by half compared to the same period of 2019, due to the COVID-19 crisis.

Total gross transaction volume reached about 44,500 sqm in the second quarter (Q2), down by 19% compared to the first quarter.

“Following strong 2019, the expectations were high at the beginning of the year. Nevertheless, the onset of the COVID-19 pandemic in Europe towards the end of Q1 had a major impact, starting with the end of Q1 and to a larger extent during Q2. As companies adjust with the new operating scenario generated by the pandemic, we can expect demand to stabilize and perhaps see a modest growth in Q3,” commented Alexandru David, research analyst JLL Romania.

IT&C and computer companies were the most active on the office space rental market in Bucharest, generating over 40% of demand in the first half of this year, followed by the banking and financial sector, with 25% of the area contracted and by medical and pharmaceutical companies, with about 9% of the total take-up.

After strong deliveries of 78,200 sqm in Q1 2020, the pace slowed down in Q2 and the office buildings completed during the period added 27,900 sqm to the modern office stock in Bucharest.

This year, the modern office stock in Bucharest is expected to increase by 214,000 sqm, and exceed the milestone of 3 million sqm.

(Photo source: Pixabay.com)