Bucharest’s Office Market Enters a New Phase Amid Record-Low Supply and Steady Demand

The office market in Bucharest is undergoing a major transformation following a decade of robust development. The supply of new office spaces has dropped to historic lows, while demand for high-quality buildings has remained relatively steady in recent years—a shift that increasingly favors landlords.

According to a Colliers report analyzing tenant behavior and market trends at the start of 2025, prime office rents in central areas have reached €22 per square meter, and in some cases, even exceed this level.

With modern spaces becoming scarcer, companies looking to relocate or expand are facing limited options and higher rental costs.

A Polarized Market

Colliers experts point out that short-term hiring intentions among local companies remain relatively solid, considering the current economic backdrop. Even in more pessimistic sectors, hiring sentiment is far from the lows seen during the 2009–2010 financial crisis or the 2020–2021 pandemic period.

The market has become increasingly polarized, with a clear tenant preference for modern, energy-efficient, and well-located buildings.

Only 20 buildings, representing 23% of the total leasable area, show a high vacancy rate averaging 33%, amounting to 181,000 square meters of unoccupied space.

In contrast, the remaining 186 buildings—77% of total inventory—report a much lower vacancy rate of just 7%, accounting for 265,000 square meters. These figures underscore the shifting preference toward premium office properties.

New Supply at All-Time Lows

Following an average of 160,000 square meters of new deliveries annually over the past decade, 2024 saw just 16,500 square meters completed, and only 6,500 square meters are planned for 2025—a dramatic slowdown in new developments.

Globally, more companies are bringing employees back to the office, including under full-time in-office arrangements. Romania is following this trend, although other European markets are further along. According to Colliers consultants, secondary office hubs in Romania like Cluj-Napoca, Timișoara, and Iași are slightly ahead of Bucharest in terms of employee office presence, though improvements are evident in the capital as well.

The Competitive Edge of Quality Offices

In this new landscape, modern and well-designed office spaces are becoming a critical advantage for companies aiming to retain or attract talent. Colliers expects that, barring major economic shifts, office leasing demand will remain at least steady, supported by:

• Stable hiring plans
• Limited modern space supply
• The ongoing global return to office trend

Eurostat data analyzed by Colliers shows that most companies are not downsizing, and some are even expanding. While the IT sector remains cautious about hiring—similar to other countries—the current level of restraint is significantly lower than during past downturns.

Meanwhile, consulting firms and corporate headquarters have shown above-average activity, signaling a stable and growth-oriented business environment.

As a result, companies planning to relocate or expand may face increasing challenges in securing suitable modern spaces amid limited inventory and sustained demand.