2024-01-31-莱坊-European_Office_Dashboard_-_Bucharest_Q4_2023_2页_527kb

Occupier Market

• Take Up: 118,000 sqm in Q4 2023, total annual take-up 439,000 sqm (record). Q4 was particularly strong (+16% YoY).
• Sector Dominance: IT & Communications (48%) and Manufacturing & Energy (20%) led leasing activity in Q4.
• Top Submarkets: Floreasca/Barbu Vacarescu, Dimitrie Pompeiu, and Centre-West submarkets drove leasing.
• Vacancy Rate: Reduced to 14% (lowest in 2023).

Prime Rent:

• Prime rent reached a new high of €252 psqm in Q4 (+11% YoY). Limited space availability is expected to continue pushing up prime rents.

New Supply:

• Construction completions in Q4 were 7,500 sqm, total annual completions 110,000 sqm (-12% YoY). New supply decreased below the ten-year average.
• Development pipeline for 2024 is limited to 15,000 sqm, contributing to supply deceleration and favouring landlords.

Election Calendar & Economic Indicators:

• 2024 is a key election year for Romania (electoral calendar).
• Unemployment rate stabilised at 5.4% in Q4 (below Euro Area average).
• New business registrations gradually picked up momentum.
• Employment expectations remained negative, while service sector confidence improved modestly in Q4.

Other Economic Indicators:

• Labour Market: Tightness remains high due to emigration and an aging population.
• Service Confidence: Improved slightly leading up to and during Q4, indicating better-than-average activity in the services sector.