The Bucharest office market registered record activity in 2016, with rents up 56% higher than in the previous year. Major transactions with a total of over 390,000 m2 were recorded, of which 37% was new, 33% was relocations, and 30% were extensions / renegotiations. There were 2 transactions over 15,000 m2 (Renault-Dacia, BCR), 5 transactions with areas of 10,000-15,000 m2 and 12 transactions between 5,000-10,000m2.
If in the last 10 years the northern area has attracted 50-75% of its annual rental volume, in 2016 the north of the capital fell below 50% for the first time to 46% of all major transactions. The decline in the northern area was generated by the westward growth to 39% of annual rents (compared to <20% in previous years). The central area attracted 14% of the rental volume, while southern and eastern Bucharest accounted for less than 1% of the market.
The level of rents has remained relatively constant in recent years, supported by incentives offered to tenants such as free months of rent, room service contributions, rental discounts for sales outlets. The "prime" rents range from 17-19 Euro / m2 / month for the best Victorian Square buildings at 14-16 Euro / m2 / month in the Barbu Văcărescu area and 10-12 Euro / m2 / month in the areas peripherals.
Average rents for secondary spaces vary from 12-14 Euro / m2 / month in the central area at 7-9 Euro / m2 / month in the peripheral area.
Author: Florian Gheorghe, Head of Research at ACTIV Property Services