The stock of modern office space in Bucharest reached 3,16 million square meters at the end of the third quarter of 2019, in the context of a population of 2,11 million inhabitants and an unemployment rate of 1.3%, according to the Romania Office Destinations report, conducted by the research department of the real estate consultancy company CBRE Romania.
With 32 public and private universities, the number of graduates from Bucharest exceeds 170,000 youths annually in Bucharest, which contributes to the allure of the city as a destination for companies wanting to increase their presence in Romania.
“Bucharest remains the first option for companies analyzing the opportunity to develop their operations in our country. We are currently discussing with several tenants interested in entering Romania, who plan to recruit about 2,000 people in total, which means a cumulative area of offices of almost 20,000 square meters”, stated Alina Calciu, Head of Advisory & Transaction Services, Occupier, within CBRE Romania. “Additionally, regional cities remain attractive for companies with a solid presence in the Capital, but also in need of further expansion. We notice a high appetite for both already acknowledged destinations, such as Cluj-Napoca, Timisoara or Iasi, as well as for newer markets, such as Brasov, Craiova or Sibiu”, added Alina Calciu.
In Timisoara, the modern office space stock was estimated at around 250,000 square meters, at the end of the third quarter of 2019, over 110,000 square meters being planned for the end of 2019 and 2020, according to the Romania Office Destinations report. The population of Timisoara has exceeded 700,000 inhabitants, while the unemployment rate is below the 1% threshold, falling to 0.7%. With seven public and private universities, Timisoara delivers more than 41,000 graduates annually.
In Cluj-Napoca, the stock of modern spaces has already exceeded the 200,000 square meters milestone and another 23,000 square meters will be delivered by the end of 2020. The city has almost 730,000 inhabitants and an unemployment rate of 1.2%. The number of annual graduates reaches almost 70,000 people, with nine public and private universities.
“The growing interest for large university centers is increasingly reflected in property prices. While prime rents remain stable in Bucharest, around 18.5 euro/square meter/month, in Cluj-Napoca, the requested rents have already reached 15 euros/square meter/month, whereas in Timisoara and Iasi, they fluctuate around the level of 14 euros/square meter/month, and drop to 13 euros/square meter/month in Brașov. Furthermore, the yields of the office buildings in Cluj-Napoca (8%) approach those in Bucharest (7%), while Timisoara, Iași and Brașov have similar values (8.5%),” explained Daniela Boca, Head of Research, CBRE Romania, coordinator of the Romania Office Destinations report.