The last decade has brought profound transformations to the Bucharest office space market, beginning with the years of accelerated expansion, supported by economic growth and the development of the IT&C sector, to the strong impact of the pandemic, which fundamentally redefined the way companies use workspaces.
The first five years, 2015-2019, were defined by record transactions and large-scale projects, with a constant annual increase in relocation transactions on the Bucharest office market.
2019 marked a historic peak, with 309,200 sqm of leased offices, including (Pre) Leases and Expansions, but excluding Renewal and Renegotiation transactions.
“In 2020, the market experienced a turning point—a true “hero to zero” moment. Not quite “zero,” but a substantial reduction: only 107,400 sqm transacted, 65% less than the previous year,” says Alexandru Petrescu, Managing Partner ESOP. It was probably the sharpest slowdown in the office space market in the capital.”
The following years, 2021-2024, were years of stabilization of relocation transactions in Bucharest, remaining around 200,000 sqm (+/- 2%), in an environment marked by unexpected challenges: the rise of hybrid work, the war in Ukraine, rising construction and energy costs, inflation and the emergence of artificial intelligence systems.
The average annual transaction volume in the last four years has registered a 35% decrease compared to the pre-pandemic year (2019) and a 20% reduction compared to the average transactions in the period 2015-2019.
Taking into account the previously mentioned adverse factors and the increasing international geopolitical uncertainty, we consider this market contraction to be moderate, demonstrating the resilience of the office rental sector.
Regarding the volume of Renewal and Renegotiation transactions, in the five pre-pandemic years the average level was around 79,000 sqm, while the following period brought a gradual increase, reaching, on average, an advance of 80%.
2023 stood out as an atypical year, reaching a record volume of 240,700 sqm of renewal and renegotiation transactions – three times the average level in previous years. This exceptional growth was due, in part, to the decision of some companies to initiate renewal negotiations early, before the expiration of contracts, targeting to optimize the occupied area and rent level, thus ensuring a more financially efficient new contractual cycle.
How did office transactions evolve in 2024?
2024 was a year of consolidation of market stabilization efforts. In the Capital, the volume of (Pre) Rentals and Expansions reached 187,000 sqm, only 6% below the average of the last three years.
In a context marked not only by three national elections, but also by significant international elections, this evolution can be considered quite favorable.
Renewals and Renegotiations remain at a relatively high level, exceeding 157,000 sqm. Although registering a significant decrease compared to 2023, the volume traded is almost double compared to the pre-pandemic average.
The most (Pre) Lease and Expansion transactions were recorded in the 1,000-3,000 sqm space segment, where 74,400 sqm were traded, up 32% compared to 2023, but also compared to the average of the last three years.
This increase was not only reflected in the total leased area but also in the number of transactions, which rose from 38 in 2023 to 46 in 2024. It is a positive signal for the market, indicating an intensification of relocations among medium-sized companies, of 1,000-3,000 sqm and, implicitly, a higher level of trust and predictability on their part.
In second place, in terms of volume of spaces traded by surface area, was the segment of spaces up to 1,000 sqm, totaling approximately 55,300 sqm. It registered a decrease of 5% compared to 2023 and 13% compared to the average of the last three years.
In terms of the most dynamic business areas in 2024, IT&C and BPO companies maintained their dominant position. However, their share decreased significantly, from 45% in 2023 to 31% in 2024.
In second place are companies in the services and consumer goods sector, with a share of 12%, up slightly from the previous year, closely followed by professional services, which represented 11% of the traded volume.
An important trend observed in the last three years is the decline in transactions made by companies in the medical and pharmaceutical sectors, whose share decreased from 25% in 2021 to just 7-9% in the following years.
Founder Partner of ESOP Consulting CORFAC International, coordinator of the Corporate Office Spaces division, with 18 years of experience in real estate consulting and entrepreneurship.
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