Bucharest Among the Largest and Most Mature Office Markets in CEE

Bucharest is one of the largest and most mature office markets in Central and Eastern Europe (CEE), alongside Warsaw, Prague, and Budapest. Romania’s capital stands out for the growth of green-certified office buildings and the integration of sustainability standards, according to the Colliers report "CEE Office Markets on the Green Path - Decarbonisation Potential," which analyzes office markets across 11 cities in the region.

Although the pace of new office deliveries has slowed recently, sustainability remains a priority for developers.

• 93% of new office buildings in Bucharest, built in the last seven years, and 70% of older buildings (over 15 years old) hold green certifications, reflecting a strong commitment to sustainability and energy efficiency.
• Warsaw is the only city surpassing Bucharest in terms of green certifications, with 98% of new office buildings certified.

Office Market Performance in 2024

The Bucharest office market closed 2024 with a total leasing demand of nearly 339,000 sqm, marking a 20% drop from the historic high of 2023 but remaining above the five-year average.

• Efficient buildings in prime locations continue to attract tenants, according to leasing data.
• The vacancy rate for relatively new office buildings (where green certifications are highly prevalent) remains in the single digits, whereas older buildings, often located in less central areas with lower energy efficiency, see vacancy rates approaching 20%.

Despite an overall slower leasing demand, new demand remained stable at 116,000 sqm, similar to 2023 levels.

Office Stock and Vacancy Trends

With just one office building delivered in 2024 (AFI Loft, ~16,000 sqm), Bucharest’s modern office stock has reached approximately 3.4 million sqm, distributed as follows:

• 31% of the stock was built in the last seven years,
• 27% is 8-10 years old,
• 42% was delivered more than 15 years ago.
• The vacancy rate for modern offices (built in the last 14 years) was between 12-14% in 2024, compared to nearly 16% for buildings delivered before 2010.
• New, green-certified, and energy-efficient offices remain in high demand in Romania, as in other mature regional markets.
• New buildings (0-7 years old) have a much lower vacancy rate of just 5% and attract higher rents, highlighting tenants’ preference for operational savings and modern facilities.

Rental Market & Future Outlook

With limited new office deliveries expected in 2024 and 2025, rents for Class A offices in prime locations could rise, driven by increasing demand for sustainable office spaces.

• Newer office spaces (0-7 years old) in Bucharest are leased at an average of €16.5/sqm, compared to €13/sqm for older buildings (15+ years old).
• In Piața Victoriei, office rents reach €22/sqm, with some buildings surpassing this level.

In regional markets, tenants are also willing to pay higher rents for newer buildings due to lower operational costs and superior amenities. This trend is evident in:

• Prague: €17.7/sqm
• Warsaw: €21.0/sqm
• Athens: €28.5/sqm

With no office oversupply per capita, companies encouraging employees to return to the office could increase leasing demand in the medium term.