Under the circumstances, it is difficult to fulfill a request for a 5,000 square meter space now, she said, despite there being about 300,000 square meters of vacant office space in Bucharest. Most vacant spaces are in unattractive areas on the outskirts of the city, while the rest are fragmented in the buildings in areas in demand.
“Demand is double the delivery rate every year. Delivery rate will remain stable in Bucharest at some 100,000 square meters this year,” Paun said. She expects 2015 to be even better than 2014, when Bucharest managed to attract a number of multinational companies.
“2014 was the best year for new demand on the office space market. There are new investors.”
Some of those companies are Deutsche Bank, Deutsche Telekom, many services centers, such as DB Schenker’s, IT and technology companies, as well as from other industries, like US-held Federal Mogul, she added.
Moreover, the average rented area surged in 2014, going from 1,000 square meters to 2,000 or 2,500 square meters, while rents stabilized at EUR11 to EUR13/square meter in Pipera, EUR14 to EUR16/square meter in Barbu Vacarescu-Floreasca and Western Bucharest, while landlords in Piata Victoriei or Piata Charles de Gaulle can charge as much as EUR16 to EUR18 per square meter.
“We’re talking the same rents for two or three years now.”
The busiest area of Bucharest in terms of development is now Barbu Vacarescu Floreasca (which connects the center and north of the city), where the projects under construction include Bucharest One and Green Court and new projects are due to begin soon such as Tiriac Tower and The Mark. Another busy area is Piata Victoriei (center of the city).
In the coming years the focus will move to the area around the Basarab overpass, towards the west of the city.
“We expect to see significant development in the western area. AFI 4&5 will be delivered this year and they will be full by the time of completion. The Orhideea, Razoare, Politehnica (Polytechnic University of Bucharest) areas will become interesting soon as Barbu Vacarescu-Floreasca becomes very competitive.”
Another factor to encourage investment in the western part of the city is the land price, 30% lower than in the north. Banks like UniCredit and Raiffeisen are now more willing to grant loans for real estate investments, but developers are often looking for other funding solutions, which are cheaper and less restrictive.
(English version by Loredana Fratila-Cristescu)