The Office Market in Bucharest at the Beginning of 2025

The office market in 2024 continued to be influenced by the persistence of hybrid work models in numerous organizations, particularly in the IT&C sector. Additionally, there was a temporary stagnation in investment projects by both international and local companies, in the context of a fragile economic and geopolitical climate, both domestically and globally.

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KEY HIGHLIGHTS

The office market in 2024 continued to be influenced by the persistence of hybrid work models in numerous organizations, particularly in the IT&C sector. Additionally, there was a temporary stagnation in investment projects by both international and local companies, in the context of a fragile economic and geopolitical climate, both domestically and globally.

A correct understanding of demand evolution requires not only a comparative analysis with the previous year but also an overview of the last three post-pandemic years, namely 2021-2023. This is because 2023 was an atypical year, with an exceptionally high volume in the Renewal transactions segment, many of which were early renegotiations for cost optimization reasons.

With this distinction, we note that despite the decline in transactions in 2024 compared to 2023, relative to the average of the last three years, this decline is much smaller. Thus, in the (Pre) Leasing and Expansions segment, a decrease of only 6.3% is observed, while Renewals remain at the average level of the last three years.

SUPPLY & PIPELINE

At the end of 2024, the stock of modern office spaces amounted to over 3.6 million sqm, or 4.3 million sqm if we include Class B spaces.
The stock is relatively stagnant, as 2024 saw the lowest office space deliveries in the last 20 years, with only 20,200 sqm delivered. Only one high-class project was delivered – the AFI Loft building in the Center-West area, with a surface of 16,500 sqm. Additionally, a boutique office of 3,700 sqm was delivered.

High construction costs and relatively low market demand are hindering the investment plans of owners. The first projects with larger areas are announced for 2027 and 2028. New space deliveries will also be limited this year, with only two buildings, totaling 18,000 sqm, planned to be completed in 2025.

Companies looking for spaces of up to 3,000 – 5,000 sqm have several options in existing buildings, many of the available spaces having been delivered in the last 5 years, thus in new and quality projects. For companies looking for spaces larger than 5,000 sqm, the options for pre-leasing spaces with delivery in 2026-2027 are already worth considering.

DEMAND & OFFICE TRANSACTIONS

In 2024, out of the total of over 344,000 sqm transacted, approximately 187,000 sqm, or 54%, were represented by (Pre) Leasing and Expansion transactions. Renewal and Renegotiation transactions accounted for 46%.The average area of (Pre) Leasing and Expansion transactions was approximately 1,000 sqm, across 188 transactions. In the Renewals and Renegotiations segment, the average transacted area was more than double, at 2,170 sqm, but within a 60% lower number of transactions, only 74 transactions.

Starting from 2021, we observe a stabilization in the recorded Leasing and Expansion transactions, with market fluctuations being mainly reflected in Pre-Leasing activities.

In terms of area, the most transacted poles remain Center-North, with 51% of spaces, and Center-West, with 23.4%.

(PRE) LEASING AND EXPANSIONS, BY TYPES OF SPACES

In 2024, out of the 188 transactions completed, 95.5% were for spaces of up to 3,000 sqm, generating approximately 70% of the transacted volume.Compared to 2023 and the average of the last three years, the only segment of spaces that recorded growth was the 1,001–3,000 sqm category. This accounted for a 32% increase in the transacted volume and an 18% rise in the number of transactions.

The largest decline was observed in the segments of spaces over 10,000 sqm and those between 3,000–5,000 sqm, a natural phenomenon caused by the reduction in the number of new projects delivered to the market—projects that typically motivated relocations for companies with larger space requirements.

The other size categories remained relatively stable or experienced minimal declines.

(PRE) LEASING AND EXPANSIONS, BY INDUSTRY

After a significant rise in 2023, when it accounted for 45%, the IT&C, BPO, and SSC sector stabilizes at 31% in 2024, maintaining its position as the leading industry by activity share, far ahead of the next-ranked sectors.

Except for this sector and the Finance, Banking, and Insurance sectors, all other sectors recorded growth in 2024, indicating a market gaining balance.Below, we include a list of representative transactions in 2024.

Company	Surface (sqm)	Industry	Property	Area
Pragmatic Play	12,000	IT&C, BPO, SSC	Afi Tech Park	Central-West
Genesis College	10,000	Education	Petrom	Downtown
DB Technology	7,000	IT&C, BPO, SSC	Upground Office Building	Central-North
Dr Max	6,600	Medical & Pharma	J8 Office Park	Central-North
L’Oreal	4,400	Consumer Goods	U Center	Central-West
Goodyear	4,000	Manufacturing & Industry	Floreasca Park	Central-North
Sanador	3,100	Medical & Pharma	Buzesti 85	Central-North
Cognizant	2,900	IT&C, BPO, SSC	Timpuri Noi Square	Central-South
Scoala Evrika	2,500	Education	Sema Parc	Central-West

MARKET TRENDS

The rental levels have continued to experience a slight increase in terms of contractual rent (headline rent), especially for premium-class projects that do not have a high vacancy rate.

Headline rents for new projects announced on the market for the 2027-2028 period are also at a higher level, ranging between 18-20 EUR/sqm, depending on location.

The increase in rents for new projects is driven by factors such as rising construction costs (materials, labor, and energy) and higher financing costs (interest rates), which put pressure on investment budgets.

Additionally, stricter sustainability and quality standards, along with a limited supply of new projects due to a decrease in the number of permits, contribute to this trend.

However, there are also areas and projects where rental levels are stagnating or even experiencing a slight decrease. This occurs when there are large vacant/available spaces for lease in that area or project.

Regarding contract duration, for relocation transactions in premium office buildings, the standard lease term remains at five years, while for renewals, it varies between three and five years.

Requested Rent Margins (Euro/sqm), by Class, in the Main Office Areas of BucharestIf you would like more information about the office spaces for rent in Bucharest, please contact the ESOP team by filling this brief form or by phone (+4) 0723.26.61.97 or (+4) 021.528.04.40. We’ll promptly answer your inquiry!