The office space area leased in the first six months of 2020 in Bucharest totaled approximately 100,000 square meters, of which companies in the IT&C sector contracted some 40,000 sqm, firms in the financial-banking sector contracted 28,000 sqm and pharmaceutical companies leased over 8,500 sqm. Compared to the first half of 2019, the demand halved against the backdrop of the COVID-19 crisis.
Compared to the last quarter of 2019, the first quarter of 2020 saw a nearly 50% decrease, but the decline tempered in the second quarter, when the office space demand in Bucharest was only 19% lower than in the previous quarter.
On average, companies leased approximately 1,400 sqm in the second quarter of 2020.
Net demand covered 16,000 sqm or 36% of the total volume registered during the period analysed, compared to 33% in the first quarter of 2020.
The vacancy rate saw a slight increase in the second quarter, from 8.7% in the first quarter to nearly 9.3% end-June 2020.
After a significant level of deliveries, of 78,200 sqm in the first quarter of 2020, the pace slowed down in the second quarter, with deliveries of 27,900 sqm. Overall, projects totaling 106,100 sqm were delivered in the first half of 2020, down 42% compared to the same interval in 2019. Deliveries in the second quarter of 2020 account for approximately 33% of the volume recorded in the second quarter of 2019, when projects of 85,500 sqm were completed.
As regards deliveries in the second half of 2020, real estate developers plan to complete 108,000 sqm, which is expected to boost the stock by 214,000 sqm, exceeding the 3 million sqm mark on the whole Bucharest market. The largest deliveries planned for the second half of 2020 include Globalworth Square with 25,700 sqm and One Tower with 23,600 sqm, both located in Floreasca – Barbu Vacarescu area, as well as the second and third buildings of Campus 6, totaling 36,900 sqm, in Bucharest’s Center-West area.