Colliers: Bucharest office market grew in Q1 2026, but still below pre-pandemic levels
Leasing transactions for modern office space in Bucharest increased by 14% in the first quarter of 2026 compared to the same period last year, while new demand rose by 24%. Even so, the market remains below pre-pandemic levels, according to Colliers data.
Total new demand reached approximately 24,000 square meters in the first three months of the year, in line with the post-pandemic average, but around 30% below the quarterly average recorded between 2017 and 2019.
This trend points to a more cautious start to the year, with a softer labour market and hiring intentions close to their lowest level in the past six years, amid ongoing uncertainties, Colliers consultants note. However, they also highlight positive signals suggesting a potential market stabilisation in the period ahead.
”Total leasing demand for modern office buildings increased by 14% year-on-year to approximately 51,000 square meters, but this reflects stabilization rather than a return to pre-pandemic levels,” said Victor Coșconel, Partner and head of Leasing in Office & Industrial Agencies at Colliers.
“At the same time, against the backdrop of limited new supply in recent years and constrained availability of well-located Class A space, we are seeing a shift in favour of landlords, which continues to generate upward pressure on rents,” he added.
At the same time, more than one-third of new demand is generated by companies newly entering the local market, which already made a significant contribution in the first quarter, supporting the outlook for improved performance in the coming months. Just in the first quarter of 2026, companies that represent new entrants leased almost 60% of the total areas that such deals generated for the full year 2025.
Demand remains diversified across sectors, with IT&C continuing to lead, accounting for over 22% of leased space, followed closely by the energy sector at nearly 20%. The financial sector, construction and development, as well as the public sector, each contributed between 10% and 15% of total leasing activity. A notable example is the relocation of the Ilfov Tribunal to a modern office building, signalling increasing interest from the public sector, although it remains less predictable.
The outlook for 2026 is mixed, according to the analysis. ”For now, negative factors appear to slightly outweigh the positives, as the European Commission’s indicator for short-term hiring intentions in Romania has fallen to its lowest level in nearly six years, without signaling a recession scenario,” explained Victor Coșconel.
(Photo source: andreasg|Dreamstime.com)
