Rents are expected to stabilize at EUR18.5-19 per square meter per month, while the new surface is expected to be roughly the same as the one delivered this year.
“Given that demand is making a comeback, in 2012 we expect rents to stabilize. In 2013, rents may rise,” according to the latest analysis of Cushman&Wakefield.
The company’s analysts said the average rent in Bucharest reached EUR18.5 per sqm per month in 2011. For 2012, the analysts expect the rent to reach EUR19 per sqm per month.
Realty advisers DTZ Echinox have roughly the same expectations for the real estate market in 2012. The company said rents in Bucharest currently range from EUR18-19/sqm in prime locations to EUR9-12 in peripheral areas.
“We expect rents to rise slightly over the next two years in central areas, reaching EUR18.5-19 per sqm per month in 2012 and EUR19-20 in 2013,” the company said in a report.
In addition, the consultants expect realty investment to decline over the next two years.
“New investment has seen a significant decline given that financers are acting with caution and developers are reducing their risks through the conclusion of rental contracts before the start of construction,” said Cushman&Wakefield analysts.
According to the quoted sources, the office buildings delivered in 2012 will have a surface roughly similar to that delivered in 2011, while in 2013 the surface is expected to widen slightly.
Thus, Cushman&Wakefield expects a total 131,000 sqm to be delivered in 2012 and some 140,500 in 2013. A total 135,000 sqm were delivered in 2011.
DTZ consultants said 2011 saw the lowest deliveries in seven years. According to them, a total 89,000 sqm were delivered this year.
“Projects set for delivery in 2012 have a surface equal to that delivered in 2011, and we may see a slight increase in deliveries starting 2013. As such, the overall office space could top two million square meters in 2013, compared to 1.84 million sqm in 2011,” DTZ Echinox said.
At the same time, DTZ expects the overall traded surface to stabilize in 2012, given the current rental activity and the low delivery levels anticipated for 2012-2013.