In the first half of 2019, the net demand accounted for nearly 43% of the total volume traded, according to data from real estate consulting firm JLL.
Capital Bucharest attracted the biggest volume of transactions, namely 101,500 sqm, accounting for 88% of the total, being followed by Cluj-Napoca (approximately 6,200 sqm), Timisoara (some 4,000 sqm) and Iasi (3,550 sqm). The companies operating in the IT, pharma and manufacturing sectors were the most active on the office space lease segment.
Across Romania, over 115,000 sqm of office space were leased during the mentioned interval, similar with the level registered in the second quarter of 2018.
“The office market continues to perform in 2019, which shows this real estate segment has reached a certain level of maturity. The presence of professional developers, with rich experience and strategies in line with tenants’ new demands, has helped the market to mature. This translates into a supply-demand balance and slight fluctuations in vacancy rates and average rental rates,” stated JLL Romania Office Department Head, Marius Scuta.
In the first half of 2019, 239,500 sqm of office space were traded countrywide, 17.6% more than in the first six months of 2018, when approximately 203,600 sqm were leased.
The transactions carried out in the first half of 2019 account for approximately 60% of the total volume traded in 2018, of nearly 400,000 sqm.
“If the current rate is kept in the last two quarters of 2019, then, the total level registered in 2018 could be exceeded by at least 20%”, said JLL representatives.
According to JLL, the most sought-after office space areas in Bucharest were in Floreasca – Barbu Vacarescu, CBD, Nord-Expozitiei and Dimitrie Pompeiu. In terms of deliveries, Bucharest saw three new projects with a total lettable area of 85,500 sqm (Business Garden Bucharest, Timpuri Noi Square 3 and Oregon Park – the C building).
The first quarter of 2019 saw the delivery of office buildings totalling 92,800 sqm. Thus, in the first half of 2019, the office space stock grew by 178,300 sqm, which translates into a 6.7% higher stock at the end of 2018. By comparison, the first two quarters of 2018 saw the delivery of just 28,000 sqm of office space.
JLL analysts expect an additional 155,700 sqm of office space to be delivered by the end of 2019, which would take the overall deliveries in 2019 to 334,000 sqm.