Colliers data show that, in this context, the market value of buildings will begin to differentiate even more, fluctuating in fairly generous margins. Specifically, if in the Floreasca-Barbu Vacarescu area the values can exceed EUR3,000 per leasable square meter for buildings no older than five years, in the emerging Center-West area, the values average EUR2,500 per leasable square meter.
“The level of annual deliveries, in the context of rising construction costs and general uncertainty, is expected to fall by half over the next 2-3 years, starting this year, when around 130,000 square meters of office space could be delivered. Thus, the vacancy rate will be absorbed differentially according to the type of building, which will create an increasing gap between newer buildings, located in good areas with superior technical specifications and constant investment in improving building performance, and older ones, located in peripheral areas, in which insufficient investment has been made to compete directly with the first category. Although the slowdown in deliveries can be seen as a stagnation of the market, the timing is good for delivering new buildings or repositioning existing ones, especially in the context of redefining office work schemes,” said Anca Baldea, Director in Colliers’ Valuation & Advisory Services department.
Over the next two-three years, the owners of commercial, office and industrial buildings will also have additional expenses to align with the requirements of the ESG in Europe, which ensures that the environmental, social and governance criteria are met.
Modern office buildings will be more competitive, with better occupancy rates and stable rents.
The logistics and industrial market could lose its competitiveness compared to regional markets due to high costs for materials and utilities.
Romania’s stock of modern industrial and logistics spaces, which could soon exceed 6 million square meters, has more than doubled in the last five years, but per capita there is still a significant gap between Romania and other Central European markets. As a result, there is potential for further development of such properties, according to Colliers consultants.
The rapid growth witnessed in terms of construction prices and utility costs is putting pressure on rent levels for newly built facilities and may lead to a decrease in competitiveness with bordering countries that will offer higher subsidies or will not participate to the same extent in applying economic sanctions to Russia, such as Serbia and Hungary.