Despite the new uncertainties, caused by the pandemic, the global economy shocks and the Ukraine war, the companies operating on Romania’s real estate market continued their renting decisions, some contracts were signed, and talks were not delayed or halted, according to Colliers consultants.
While demand figures are still way below the pre-pandemic peaks, 2022 had a good start as regards rental activity in Bucharest, with total demand rising by almost 15% from the year-earlier period, to around 62,000 square meters, while new demand advanced by around 57% from the first quarter of 2021, to 34,000 square meters.
Also, new companies entered the local market and opened headquarters in the first quarter of 2022 and several other companies are set to enter or significantly boost their presence locally in the coming period, suggesting the start of the year is better than existent figures show.
“Looking at demand, we can notice the IT&C area is still providing the main clients of office buildings. Professional services companies or those in consumer-oriented fields also had a significant contribution. At the same time, hiring intentions are still solid, slightly topping the all-time average in many cases, underlining the fact that companies are rather expanding, and not downsizing. However, should economic conditions deteriorate, hiring decisions are likely to reverse. In other words, the economy is quite robust in the current challenging context, but this can change quite rapidly, and risks for 2022 are considerable and tilted downward,” explains Victor Cosconel, the new Head of Leasing Office & Industrial Agencies at Colliers.
(English version by Catalina Apostoiu)