Cushman & Wakefield: Romanian prime office rents down 5 percent last year

Newsroom 20/02/2011 | 12:58

 

Bucharest took up the 43rd spot in a Cushman & Wakefield ranking of most expensive office space locations in the world “Office Space Across The World 2011”. The market remained one of the tenants in 2010, as rents went down 5 percent compared to 2009. An increase is expected for this year.

This year is expected to see a growth in activity as tenants are re-evaluating the need for space, while many contracts which were closed before the recession hit are now close to their expiration date.

There are currently 160,000 sqm of office space in Bucharest, following the new deliveries in 2011, the study shows. The total value of office space transactions stood at EUR 124 million in 2010, the most recent transaction being the EUR 100 million acquisition of 36,000 sqm of office space in Floreasca 169 by NEPI.

In Central and Eastern Europe, both Romania and Bulgaria saw a weak demand of office space and excess of space, which lead to a decrease in rents by 5 percent and 9 percent respectively last year.

In the rankings, Hong Kong surpassed Tokyo and London and because the most expensive office location in the world. As worldwide trends, rents in Beijing (which is the second most expensive location in China) grew by approximately 48 percent.

After Hong Kong, which has an office space cost of EUR 1.931 per sqm per year, London comes second with EUR 1.872 per sqm per year, followed by Tokyo (EUR 1.334 per sqm per year), Rio de Janeiro (EUR 965 per sqm per year), New York Midtown (EUR 920 per sqm per year), Mumbai (EUR 916 per sqm per year), Moscow (EUR 868 per sqm per year), Paris (EUR 835 per sqm per year), Zurich (EUR 786 per sqm per year), and Milan (EUR 729 per sqm per year).

 

Prime rents in downtown Bucharest in December 2010 stood at EUR 18.50 per sqm per month, and EUR 11.00 per sqm per month outside of the city. In Brasov and Constanta rents in the last month of the year stood at EUR 10 per sqm, while in Timisoara they stood at EUR 11.50 per sqm.

 

 

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