Rental Prices in Bucharest in 2012

TOP rents by AREAS in Bucharest in 2012 and the first months of 2013

I. DIVISION OF THE OFFER BY AREAS

II. STOCK OF FREE SPACES IN OFFICE BUILDINGS ON BUDGETS

III. DEMAND FOR FREE SPACES IN BUDGET OFFICE BUILDINGS

• The lowest rents in business centers are found in the NORTH-periphery, even smaller than in the SOUTH, and the highest in the Center-North and Ultracentral.
• If last year the NORTH area was, on average, 15% more expensive than the South, now the minimum rents are lower on average by 1 euro/sqm/month.
• The lowest rents in villas are also in the SOUTH and NORTH, and the highest in the Center-North and Ultracentral.

I. DIVISION OF THE OFFICE OFFER BY AREAS

In the case of OFFICE BUILDINGS, compared to the beginning of last year, there is a slight reduction in the CENTRAL-NORTH area and the NORTH area.

“In 2012 and the first two months of 2013, rents generally remained at a level similar to 2011, with slight adjustments of 5-10% in a small number of projects or areas. In the North Pipera area, for example, due to the large stock of spaces available for rent, the flexibility of the owners to negotiate the financial conditions was greater,” says Alexandru Petrescu, manager of ESOP Consulting / CORFAC International.

Referring to the areas, in the top of the rents of the spaces in office buildings on the first place, at equality are the ULTRACENTRAL (10-18 euro/sqm/month) and CENTRAL-NORTH (10-18 euro/sqm/month) areas, on the second place is WEST (8-15 euro/sqm/month), on the third place the EAST (7-13 euro/sqm/month), on the fourth place the SOUTH (7-12 euro/sqm/month) and the last place the area NORTH periphery (6-11 euro/sqm/month).

In the case of OFFICE BUILDINGS, the difference in rent between category A and category C spaces, located in the same area, can be up to 70%.

Dividing of spaces for rent for offices in villas by areas

And in the case of villas, in the first place is also equal Center-North and Ultracentral, the rent margin being between 11 and 13 euro/sqm/month. Compared to last year, there was a very slight decrease in rents in the ultra-central area (by 3%).

And on the segment of villas, the cheapest office spaces are found in the North-periphery area, with a market minimum of 6 euro/sqm/month.

II. STOCK OF FREE SPACES IN OFFICE BUILDINGS ON BUDGETS

At the beginning of 2013, there is an increase in the volume of spaces with a rent level below 11 euro/sqm/month, both in the segment of business centers and villas.

Thus, 42% of the total stock of spaces in OFFICE BUILDINGS A, B, and C, which represents a cumulative area of ​​310,772 sqm is promoted below 11 euro/sqm/month, a share of 38% (289,292 sqm) is promoted between 11.1 and 15 euro/sqm/month, and only a percentage of 20% (145,705 sqm) are put up for rent at over 15.1 euro/sqm/month.

This increase in the weights of budgets under 11 euro/sqm/month and of those between 11.1 and 15.1 euro/sqm/month made that in the second half of 2012 and in the first two months of 2013 medium-sized companies analyzed by ESOP Consulting to consider office buildings primarily, to the detriment of villas. This trend is a reversal of the situation in 2011 when the share of medium-sized customers analyzed by ESOP who preferred villas was higher.

“Business centers with available spaces in Bucharest are becoming more and more competitive, and this tipped the scales in 2012 in their favor. Thus, over 75% of the medium-sized companies analyzed by ESOP chose to move to business centers in 2012. Only 25% chose villas, medium-sized companies managing to find a common denominator easier in 2012 than in 2011 between budgets and the rents requested by the business center owners,” says Alexandru Petrescu, manager of ESOP Consulting.

On the segment of office spaces in VILLAS, the share of offices under 11 euro/sqm/month is 64%. The other two categories of rents – between 11.1 and 15 euro/sqm/month and over 15.1 euro/sqm/month are more balanced in weight, compared to the segment of office buildings, with 21% and 25% respectively.

Demand with budgets below 11 Eu / month was the one that gave the market trend. The number of clients with budgets below 11 euro/sqm/month also increased in 2012 (even if not as fast as in previous years), taking a percentage from each of the other two segments (according to the chart below).

III. DIVISION OF CAPITAL BY AREAS WHERE THERE ARE PROPERTIES FOR RENT

• NORTH CENTER: Victoriei, Arc de Triomphe, Kiseleff, Aviatorilor, Charles de Gaulle, Nordului, Stefan cel Mare, Domenii, Floreasca, Herastrau, Casin, Dorobanti, Barbu Vacarescu, Piata Presei Libere, Mihalache and Primaverii
• ULTRACENTRAL: Unirii, Universitatii, Dacia, Romana, Rosetti, Eminescu, Calea Victoriei, Icoanei and Batistei
• NORTHERN PERIPHERY: Pipera, Baneasa, Aerogarii, Bucure? Tii Noi, Chitila, Sisesti, Lacul Tei, Otopeni
• EST: Mosilor, Ferdinand, Mantuleasa, Calea Calarasilor, Iancului, Mihai Bravu, Vitan, Foisorul de Foc, Bessarabia, Calea Vacaresti, Mihai Bravu, Obor, Pache Protopopescu, Rosetti, Vasile Lascar, Alba Iulia, Camil Ressu, Colentina, Muncii.
• WEST: Cotroceni,? Tirbei Voda, Ci? Migiu, Plevnei, Mircea Vulcanescu, Gara de Nord, Grozavesti, Militari, Bucharest-Pitesti, Crangasi, Drumul Taberei, Gara de Nord, Giuleati, Izvor, Lujerului, Prelungirea Ghencea, Razoare
• SOUTH: September 13, Budapest, Cosbuc, Maria Rosetti, Timpuri Noi, Drumul Sarii, Berceni, Tineretului, Oltenitei, Calea Vacaresti, Marasesti, Calea Rahovei.