Cushman & Wakefield Echinox: Romania’s regional office stock lags Poland, but long-term potential remains
The modern office stock in Romania’s main regional cities, such as Cluj-Napoca, Timisoara, Iasi, and Brasov, currently stands at approximately 1.08 million sqm, while no office project has been delivered in these markets over the past two years, according to the “Romania Office Report” released by real estate consultancy company Cushman & Wakefield Echinox.
As a result, the regional cities in question account for around 25% of Romania’s modern office stock, estimated at approximately 4.5 million sqm, even though their demographic and educational potential is comparable to or even exceeds that of Bucharest.
Despite this strong potential, the office stock in Romania’s regional cities remains 68% lower than the corresponding one in Bucharest, highlighting a significant gap between latent demand and the current supply level.
In comparison, Poland’s regional office markets have expanded rapidly over the past decade, with the total stock outside Warsaw exceeding 6.7 million sqm, surpassing the capital’s 6.2 million sqm. Over the last ten years, the Polish regional cities have benefited from more than 3.2 million sqm of new office developments, compared to just 580,000 sqm delivered in Romania’s regional cities.
From a human capital perspective, the differences are even more pronounced. While Warsaw concentrates approximately 259,000 students, Poland’s regional cities host more than 654,000 students.
Poland’s regional cities continue to attract the highest level of development activity, with more than 150,000 sqm of office spaces under construction, followed by the Czech Republic with 95,000 sqm. In contrast, only 23,000 sqm are currently under construction in Romania, reflecting both developer caution and structural market constraints.
The analysis of office space density reported to the student population highlights substantial differences across markets. In Bucharest, the indicator stands at 19 sqm per student, compared to 24.1 sqm per student in Warsaw and 28.6 sqm per student in Prague.
In Romania’s regional cities, density ranges from 4.8 sqm per student in Cluj-Napoca to 6.5 sqm per student in Timisoara, corresponding to an overall average of 5.5 sqm per student (vs. 10.3 and 10.7 sqm per student in the Polish and Czech regional cities, respectively).
Nevertheless, Romania’s regional cities stand out for their relatively tight office availability, with vacancy rates ranging between 8.5% and 16.7%, comparable to or even lower than those seen in many regional cities in Poland, where the vacancy rates often exceed 18-21%. At the same time, the prime headline rents remain competitive, at EUR 13 - 17/ sqm/ month, below peak levels in regional hubs such as Brno or Kraków, where rents can reach up to EUR 18 - 19/ sqm/ month.
“Cluj-Napoca stands out both in terms of market size and leasing activity, while Timisoara, Iasi, and Brasov compete through lower occupancy costs, access to skilled talent, and improved connectivity. Solid demographics – more than 1 million inhabitants and nearly 200,000 students - support long-term growth prospects, while limited development activity is expected to put upward pressure on rents,” according to Mădălina Cojocaru, Partner, Office Agency, Cushman & Wakefield Echinox.
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