Office rents in Bucharest among lowest regionally and continentally
The office rents in Bucharest are among the lowest both at the regional and continental levels, according to data from the Cushman & Wakefield Echinox real estate consultancy company.
Even though the prime headline rents in Bucharest continued to increase in the third quarter, reaching a level of EUR 19.5/sqm/month, compared with EUR 18.5/sqm/month at the beginning of the year, the Romanian capital city remains among the less expensive destinations in Europe in terms of office occupancy costs.
In comparison, the prime headline rents in Budapest and Warsaw are EUR 24.5 and EUR 24/sqm/month, respectively, while in Prague the level is even higher, reaching EUR 27/sqm/month. In Sofia, offices are leased for a maximum of EUR 15/sqm/month.
Together with workforce availability and competitive salary costs, the low office rents can transform Bucharest into an attractive tech hub. A regional study produced by Cushman & Wakefield also revealed that the average annual income of the IT&C specialists in Bucharest is 40% lower than the level registered in Warsaw and it is only half of the one from Prague.
“Bucharest is certainly one of the major tech hubs in Central and Eastern Europe if we take into account the investments made in the last few years by the companies active in this sector. From a real estate perspective, IT&C companies have leased over 1 million sqm of offices in Bucharest alone during the last decade, having a share of almost 40% of the volume transacted in that particular period,” said Mădălina Cojocaru, partner Office Agency, Cushman & Wakefield Echinox, in a press release.
222,600 sqm of office spaces have been transacted in Bucharest between January and September, reflecting a 5% increase compared with the same period last year. The vacancy rate in the city has slightly decreased to 14.4% in the third quarter.
Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania.
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