The biggest growth in office stock will be registered in Istanbul, where 1.2 million sqm of office stock will be delivered this year, 448,000 sqm in 2015 and 472,000 in 2016.
By absorption rate, Bucharest is also second to Istanbul, as Cushman&Wakefield analysts expect Romania will lease out nearly 20% of its existing stock of over 1.2 million sqm each year, in the 2014-2016 period.
The survey notes the UK, Poalnd and Romania are the “shining stars” in terms of GDP growth and market conditions continue to improve in Bucharest. The survey states rent prices could rise in 2016, along with a drop in office space vacancy rates.
Cushman&Wakefield estimates a total of 146,243 sqm of office stock will be delivered in Bucharest this year, 125,000 sqm in 2015, and 150,000 sqm in 2016.
Bucharest also has one of the lowest vacancy rates in Central and Eastern Europe, with 12.6% in 2014, 11.5% in 2015, and 10.6% in 2016. Lower vacancy rates are registered only in Bratislava, with 11.9% in 2014, 11.6% in 2015, and 10.9% in 2016.
Prague (465,000 sqm), Warsaw (670,000 sqm) and Moscow (2.1 million sqm) are the following markets in the top five expected office stock growth rates by 2016.