The Office Market is showing Signs of Recovery, in the First Half of 2021

The office market is showing signs of recovery, regaining in the first half of 2021 half of the fall due to the pandemic, according to an analysis by the company ESOP Consulting l CORFAC International, based on data from the forum of the main real estate agencies.

The positive signs of the market can also be seen in the evolution of office pre-lease and expansion transactions in Bucharest, generated by companies that have decided to either move to a new location or expand their activity in office buildings where they were already operating.

If we take as reference the first half of 2020 (when Romania had to face the first wave of the Covid 19 pandemic and the office market was among the most affected areas), this segment of the demand for new spaces increased by 7 % in the second half of 2020 and 48% in the first half of this year.

“We estimate that the positive market trend will continue until the end of the year. We have noticed that in the last six months some of the ongoing requests come from companies that want to enter the Romanian market and we consider that the effects of Brexit and some difficult situations generated by the pandemic in countries more affected than Romania, (such as India) creates favorable premises for Romania to be chosen as a destination for relocating activities or companies in our country, especially in the fields of IT&C, back-office and shared service activities, and automotive industry.” says Alexandru Petrescu, Managing Partner at ESOP Consulting l CORFAC International.

The total volume of office transactions also increased – new spaces (rent, pre-lease and expansion), including contract renewals in Bucharest, in the first half of 2021, compared to the first half of 2020, but also compared to the second semester of 2020.

In total, in the first half of 2021, offices with a total area of ​​132,397 sqm were traded, 70% more than in the first half of 2020, the most affected by the pandemic. 

By far the most active field was Medical & Pharma.

The most dynamic sector of activity in S1 2021 is the medical field, which capitalizes on the flexibility offered by the owners of office buildings and expands both by opening new medical clinics and private hospitals.ESOP Consulting has mediated in the first half of 2021 the lease of two office spaces to be transformed into medical clinics.

“The current health situation and the greater care of the population for health are prerequisites that this growth trend of the Medical & Pharma segment will continue for a while. There is now a favorable context in which office building owners offer greater flexibility in terms of commercial conditions and benefit packages for tenants. An important advantage of the companies in the Medical & Pharma field is the fact that they prefer contracts for longer periods than the current market average and this aspect is an advantage for the owners as well”, says Alexandru Petrescu, Managing Partner at ESOP.

If 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!