"The biggest development is expected in Istanbul, with 620,000 sq m of new offices, a 28% growth of the existing stock. Kiev occupies second places, with 275,000 sq m (approx. 20% growth). In CEE, Warsaw, Bucharest and Prague will have the biggest levels of the new offer ", the DTZ study regarding office market in second quarter in Europe shows.

According to DTZ estimations, the office stock in Bucharest will increase with over 15%, which means that by the end of the year will be completed approx. 300,000 sq m office projects, considering that the modern stock in Bucharest currently situates around 2 million sq m.

The study also shows that in Europe, in 2013 and 2014, there are expected new 12 million sq m office spaces to be completed.

"Part of the new offer is hypothetical, and the real construction works start will depend mostly by a significant growth of the request and by the economic recovery. In Europe, the total of the projects with completion date in 2013 and in 2014 represents a 4% increase of the stock ", the study shows.

The new offices stock increase has an impact on the occupancy rate of the projects, considering that the request remains poor and in the first half of year in Bucharest was registered a total rented area below the area from the similar period of last year.

Therefore, the un-occupancy rate reduced marginally in Europe, the average maintaining at 10.9% at the end of the second quarter, from 11% in the first quarter.

"In the last 12 months, the biggest falls of the un-occupancy rates were registered in Istanbul, Birmingham, Manchester, Hamburg and Budapest, while the high level of projects to be delivered on the market in the next period pushed up the un-occupancy rates in Geneva, Warsaw, Bucharest and Milan", the cited study says.

In Geneva the un-occupancy rate increased with almost 50%, in Warsaw with approx. 40% to a record level of 10%, while in Bucharest, the increase registered was approx. 20%, exceeding 12% of the total stock.

The rents maintained on the European office market, with cities such Bucharest, Kiev, Warsaw, Milan and Madrid, where the rents still were under pressure and with other cities, such as Moscow, Istanbul and Frankfurt, which registered an advance of 7-7.7%.


The study aimed 30 cities across Europe. (source: economica.net)