The first half of the year saw leasing transactions in modern office buildings in Bucharest totalling over 100,000 square metres, down by more than a third compared to the same period last year - a sign that the market remains cautious amid both domestic and international uncertainties, according to Colliers consultants. This marks the weakest semester in the past four years, but there are brighter prospects in the medium term if an adverse economic scenario is avoided. Bucharest remains a key landmark on the office map of Central and Eastern Europe, in a regional context shaped by cautious investment and increasing demands for quality and sustainability. The “ExCEEding Borders Office 2025” report, published by Colliers, shows that Romania is following these trends, with a strong focus on well-located, energy-efficient buildings tailored to modern ways of working.
According to data from the first half of the year, over 100,000 square metres of modern office space were leased in Bucharest. Of this total, less than 40,000 square metres represented new demand - that is, contracts with a net positive impact on the occupancy rate. Both figures reflect a level of market activity more closely aligned with the lows recorded during the pandemic than with the recovery years of 2022–2024. Furthermore, the volume of new demand is approximately half the average semi-annual level seen between 2017 and 2019.
“The local market has been going through a less favourable period, as external uncertainties have overlapped with a series of domestic events that prompted various stakeholders - from companies to investors - to adopt a more cautious stance. As long as the internal situation begins to stabilize, we may see a gradual recovery in activity over the coming period, although the foundations for a swift rebound are not yet in place. However, from the perspective of financial health for landlords and developers, it is worth noting that the current context coincides with a rather limited pipeline of new deliveries in the coming years - which can be seen as a positive factor”, explains Victor Cosconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.
With a modern office stock of over 3.4 million square metres and a vacancy rate of 12.5%, the Bucharest market remains relatively balanced, despite facing a limited supply of new projects and a demand that is visibly in transition. Over the past year, only 16,500 square metres of new office space were delivered in Bucharest, while approximately 118,000 square metres are currently under construction - an insufficient volume to meet future demand, particularly for premium buildings that comply with ESG standards. By comparison, Warsaw delivered 62,000 square metres in 2024, and Budapest 45,000 square metres, maintaining a stronger development pace than Bucharest.
At the same time, many companies are avoiding pre-leases due to economic uncertainty and ongoing shifts related to the impact of hybrid work, opting instead to relocate to available spaces or, more simply given the current context, to renegotiate their existing contracts.
“Bucharest’s office market is undergoing a period of transition: demand remains steady across traditional industries such as financial and professional services, but companies are becoming more cautious, adjusting their space requirements in line with new ways of working. At the same time, the lack of new developments - particularly in central areas - is placing pressure on the existing stock, while green, sustainably certified buildings located in well-connected areas are becoming increasingly attractive to quality tenants”, adds Victor Cosconel.
Prime office rents in Bucharest’s Central Business District (CBD) have reached approximately 22 euro per square metre, with higher rates possible in certain cases. This marks an increase compared to previous years, driven by inflation and a lack of competitive alternatives in central locations. By comparison, prime rents stand at 27 euro per square metre in Prague, 25 euro in Warsaw, and 20 euro in Budapest. Nevertheless, landlords in Bucharest remain flexible during negotiations, often offering incentives such as fit-out contributions or rent-free periods, particularly for long-term leases.
An increasingly noticeable trend in the office market is the active involvement of the public sector, which should begin to play a significant role as an occupier - particularly in modern buildings that offer attractive working conditions for employees. Choosing high-quality office space is becoming a strategic move for state institutions aiming to attract and retain valuable professionals. This phenomenon is also evident in other CEE markets, such as Bratislava and Budapest, where public administrations are emerging as relevant players in the office sector.
Over the medium term, Colliers consultants anticipate a concentration of demand around modern, well-located buildings in established business and office districts like those on the axis Piața Universitatii – Piata Romana - Piața Victoriei, Charles de Gaulle, as well as established submarkets like parts ofFloreasca Barbu – Vacarescu, Centre-West area or Tineretului – Timpuri Noi, where good access and infrastructure offer additional value. Secondary buildings or those situated in peripheral areas will require significant investment to remain competitive, and some may be subject to conversion. The flexible workspace segment continues to expand, being the preferred choice for companies in transition or expansion phases, seeking adaptability and cost efficiency.
“Romania continues to be an attractive market for investors, particularly in a regional context where energy efficiency, sustainability, and accessibility are becoming key criteria in the selection of office spaces. In the long term, Bucharest requires a more sustained pace of new developments, aligned both with the concrete needs of tenants and with the strategic direction of the European Union regarding the transition towards a greener real estate stock, adapted to new working realities”, concludes Victor Cosconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.
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