T1 2015: Tenants preferred Villas

T1 2015: Tenants preferred villas with offices located in premium areas – Romana, Domenii, Aviatorilor

In T1 2015, the number of transactions with villas rented to serve as offices increased by approx. 43% compared to T1 2014, but the average rented area decreased by 36%, to 265 sqm. Instead, the tenants’ chosen areas were only premium, ultra-central, or from the center-north, where the presentation rents are between 10-13 euro/sqm.

“The tenants were looking for well and correctly renovated villas, with IT network and other office space facilities, in areas that provide a new image, such as Romana, Cismigiu, Domenii, and Aviatorilor. The presentation rents for such properties are between 10 and 13 euro/sqm”, declares Alexandru Petrescu, Managing Partner of ESOP Consulting | CORFAC International.

Among the tenants who found office space in a villa rented through ESOP in T1 2015 are the financial institution Verida, NTS Leader, and the advertising agency Joint Media Advertising.

In the first quarter of 2015, the villas surrounded by greenery were at a high price, even if the areas were the land is costly. Usually, the courtyards are a rarity. Thus, a tenant in the field of security and protection chose an ultra-central villa (photo 1), in the Polona area, which enjoys a chic garden and a functional barbecue, and a tenant in the IT field a villa dressed in ivy and roses (photo 2) from the Stirbei Voda area.

Evolution of transactions with rented villas for offices 2013-2015

In 2014, at the level of the Capital, 13 villas were rented for offices, 12 less than in 2013, according to the statistics registered at the Forum of the most important real estate agencies. The main reason for this decrease, both in number and total rented area, was due to the large number of quality office buildings delivered in 2014. It also attracted traditional customers in the segment of villas – law firms and law enforcement agencies, advertising, and financial or personal services.

In 2015, the rental villa market was reviving. In the first three months of 2015 at the level of the ESOP agency, one of the most critical players in this market segment and the largest database of villas for rent and sale, the number of transactions with villas increased three times compared to the same period last year.

The offer of office villas for rent is concentrated in the ultra-central and center-north areas.

In Ultracentral – which includes the areas of Romana, Unirii, Cismigiu, and in Centru-Nord – Kiseleff, Domenii, Soseaua Nordului, 1 Mai, Floreasca, Baneasa there are villas available for rent totaling 76,573 sq m, more than half of the total stock. Most are located in the center-north area, near embassies, large multinational headquarters, the Government, and the most expensive residential neighborhoods.

And we further estimate that these areas will remain stars on this market, the profile of tenants who prefer villas as offices being suitable for the type of properties existing here. This is also known by investors who prefer to buy and capitalize villas in the Center-North and Ultracentral, even if the rental offer is higher than in other areas. The prices are 50-70% higher.