Bucharest's office market: a hub for growth and expansion

 

Bucharest's commercial office market continues to demonstrate remarkable vitality, solidifying its position as a prime location for businesses looking to expand or establish operations.

 

By the end of H1 2025, the number of employees in A & B Class office buildings in Bucharest surpassed 340,000, representing nearly a third of the city's total workforce.

 

This significant growth is a clear indicator of Bucharest's dynamic economic landscape.

 

Surge in demand: who's leasing office space?

 

The first half of 2025 saw companies contract office spaces equivalent to supporting over 7,000 new employees. The net take-up, a key measure of new demand excluding renegotiations, reached an impressive 64,300 sq. m. This robust demand is primarily fueled by specific sectors:

 

IT&C Sector: Leading the charge, IT&C companies accounted for 25% of the new office space demand.

FMCG & Retail: Operators in these sectors contributed a substantial 17%.

Financial Services: The financial sector also showed strong interest, making up 15% of the new demand.

 

Prime office locations in Bucharest

 

Businesses seeking strategic locations in Bucharest will find thriving communities in several key areas:

 

Center – West: This area hosts the highest concentration of employees, approximately 65,000.

Floreasca – Barbu Văcărescu: A close second, with around 60,000 employees.

Center: A central hub accommodating nearly 50,000 employees.

 

Future outlook: supply, vacancy and rental trends

 

The market is adapting to the growing demand. Currently, 132,300 sq. m of new office spaces are under construction, with over 90% slated for delivery in 2026 and 2027, potentially adding capacity for an additional 15,000 employees. Despite a slight decrease in gross take-up compared to H1 2024, the net take-up remained strong at 53% of the total H1 demand. The vacancy rate continues its positive downward trend, reaching a low of 13.4% – the lowest since Q2 2021. This trend is expected to continue through year-end 2025, as no new office buildings are scheduled for completion.

 

Rental levels in Q2 2025 ranged from €20.00 – 21.00/ sq. m/ month in the Central Business District (CBD) and between €9.00 – 18.00/ sq. m/ month in other submarkets. With decreasing vacancy rates, particularly in landlord-favorable areas like CBD and Center, limited rental growth is anticipated.

 

Expert insights: a resilient market

 

Mădălina Cojocaru, Partner, Office Agency C&W Echinox, affirms the resilience of the Bucharest office market. She highlights strong interest in modern, efficient spaces, especially within central areas. The current market conditions are conducive to absorbing existing spaces and may lead to moderate rent increases in areas with limited availability. Demand is expected to stabilize by year-end, signaling a healthy and sustainable market for businesses considering their next office move in Bucharest.

 

Source: business-review.eu