No major office projects have started or been announced for 2023 for the first time in more than 20 years, as construction prices increase rent and companies are less interested in leasing new space.
“The office market in Bucharest is currently facing significantly greater uncertainties, so many owners prefer to wait for more clarity before announcing or putting future projects on the market. Apart from the projects with delivery in 2023, if we look beyond 2024, the calendar of projects where work is actually being done and we also have a relatively assumed completion date is almost empty. In conclusion, it seems that there will be a period – at least 2024 and 2025 – with very limited deliveries and few major projects (over 10,000-15,000 sqm). For comparison, between 2017 and 2022, an average of 180,000 rentable sqm were added to the Bucharest office market each year,” explains Silviu Pop, director of CEE & Romania Research at Colliers.
Only six office buildings, totaling 135,700 sqm GLA, could be completed this year in Bucharest, the lowest level in a 5-year cycle.
