Office space rents fall in Bucharest, Romanian capital among Europe's cheapest

Rent on office space in Bucharest fell again in the fourth quarter of 2012, keeping Romania's capital among the lower priced locations in Europe. The average monthly rent for office space in Bucharest is EUR 18.50 per sqm – a 5.13 percent year on year fall, according to research carried out by commercial real estate services firm CBRE. The average EUR/sqm annual rate for prime office space in Bucharest is EUR 222 per sqm and although among the lower prices in Europe, it is by no means the cheapest. It is ahead of a number of other cities in both Western and Eastern Europe. Bucharest office space is slightly cheaper than in Budapest, Hungary, where prices were flat in Q4 2012 at EUR 240 per sqm a year. Rents in Warsaw climbed 17.39 percent year on year to reach EUR 324 per sqm a year. Prices were also flat in the Czech capital Prague, some EUR 252 per sqm a year. However, Bucharest office space is significantly more expensive than in Bratislava, the Slovak Republic, where the price was EUR 192 per sqm per year. Bucharest is also ahead of cities in some regional non-EU states – Zagreb, Croatia (EUR 180/sqm/year ), Belgrade, Serbia (EUR 180/sqm/year ). Office space in Bucharest is almost exactly the same price as in Copenhagen, Denmark and Lisbon, Portugal, and costs more than in Lille (France), Thessaloniki (Greece), Rotterdam (The Netherlands), Oporto, (Portugal), Barcelona (Spain) and Belfast (UK). The highest office space rental rates were in London's West End (EUR 1227.54/sqm/year) and Paris (EUR 830/sqm/year). Liam Lever, liam@romania-insider.com (photo source: Vienna Stock Exchange)