Transacted volume decreased by 40% in 2020, to 237,000 square meters, amid the Covid-19 pandemic that caused most companies to adopt remote work on a large scale, postponing decisions with medium and long term impact.
“We can say that the beginning of this year brought an even higher volume of activity compared to the beginning of 2020, when almost no one could foresee the major impact of the Covid-19 pandemic. We are currently working for projects under construction of more than 70,000 sqm in Bucharest and regional cities, for some of the largest corporations locally present, that are aware of the favorable moment to re-establish their contracts, whether they are renegotiations, consolidations, downsizing or even extensions of spaces. In this context, we expect the transacted volume to increase substantially in 2021, by at least 20-30%, and to return above the 300,000 sqm level,” said Bogdan Bogatu, Director Office Agency, Cushman & Wakefield Echinox.
2021 started with different premises, given that the global number of Covid-19 cases has halved compared with the end of 2020, and the positive evolution of vaccination campaigns allows authorities to relax restrictions. In this context, after a year during which companies assessed the impact of remote work they are now in a position to rethink their space needs in a market that has become favorable for them.
The vacancy rate in Bucharest increased in 2020 and reached 12.5%, the highest vacancy in the last four years.
However, developers are currently working on office projects totaling over 350,000 sqm, to be delivered in the next two years, as a return of demand is anticipated, with a focus on modern spaces that incorporate the latest technologies.