Romania's office market: a closer look at H1 2025 trends
The first half of 2025 presented a dynamic landscape for Romania's office real estate market. Despite a reported decrease in overall leased area in Bucharest, specialized real estate consultants like Crosspoint Real Estate, an International Associate of Savills in Romania, announced significant activity, facilitating lease transactions exceeding 6,000 square meters. These transactions involved companies across diverse sectors including technology, military technology production, construction, and agricultural finance, pushing Crosspoint's intermediated office portfolio to over 45 million Euros.
Evolving demand and sectoral shifts
Valentin Neagu, Managing Director at Crosspoint Real Estate, highlighted that these results underscore a deliberate strategy to bolster their office division, aligning with prevailing market demands. A notable trend observed was the strong presence of new companies in Bucharest, particularly in technology, military technology production, and agricultural finance, accounting for two-thirds of the transacted space. This indicates Romania's continued appeal as a stable and attractive business environment for new ventures.
While the Tech sector historically dominated demand, H1 2025 saw a shift in Bucharest. The financial-banking sector emerged as the leading force, accounting for 31% of demand, followed by Tech (16%), professional services (15%), consumer and leisure services (12%), and business services (10%). However, the Tech sector continued to lead net demand, securing over 13,000 square meters of new leases in Bucharest. Beyond the capital, a substantial transaction of over 2,000 square meters involved a technology company renewing its contract in Cluj-Napoca, signaling sustained interest in secondary hubs.
Renewed confidence and market recovery
Mădălina Marinescu, Head of Office Agency at Crosspoint Real Estate, pointed out a renewed enthusiasm from IT companies for office spaces during the first half of the year. This marks a positive shift from a previously cautious stance to one favoring expansion and development. This change is also reflected in an increased physical presence at offices, suggesting a broader market recovery and a strengthening of economic confidence across various industries.
Market dynamics: vacancy, rents, and future outlook
In H1 2025, the total leased office area in Bucharest reached 112,225 sqm, representing a 31% decrease year-over-year. Net leased area, which excludes renewals and sub-leases, was 62,718 sqm, down 23% compared to H1 2024. Despite lower interest in new office developments and the absence of major new project deliveries, the vacancy rate remained stable, close to 12%. Rents largely held steady, with the maximum rent in Bucharest capping at 22 EUR/sqm/month.
Looking ahead, Ilinca Timofte, Head of Research at Crosspoint Real Estate, anticipates potential pressures on the market. Increased taxes, rising energy prices, and accelerating inflation from Q3 are expected to directly influence both rents and maintenance costs for office spaces. These factors could add further pressure on an already moderate demand, potentially impacting companies' appetite for significant expansion or relocation decisions.
Bucharest's most sought-after office hubs
For businesses considering office space in Bucharest, key areas continue to attract the most interest. The Center-West area accounted for 32% of total H1 leases, making it the most popular hub. Following closely were the Central Business District (CBD) with 24%, and the Floreasca-Barbu Văcărescu area with 20% of the total leases, solidifying their status as prime locations for office space in the capital.
Source: bursa.ro
