The office market in Romania and Europe – driven by quality services and technology
Investments have currently reached a record in Europe, due to transactions generated by companies that serve Technology and Services. The total stock of modern office space in Warsaw, Prague, Budapest and Bucharest reached a number of 12.83 million sqm at the end of 2014. At the same time, the volume of new deliveries in Central and Eastern Europe is expected to grow by 15% in 2015.
The office market in Central and Eastern Europe has experienced a significant increase in investment in 2014 due to the dynamic business environment created by transactions between companies present in the technology and service sectors. In terms of volume of new deliveries, 2015 presents itself as an optimistic year, as shown in a survey made public by real estate consulting company DTZ Echinox.
The total stock of modern office space in Warsaw, Prague, Budapest and Bucharest at the end of 2014 reached a number of 12.83 million square meters, 5% higher than the previous year. Warsaw continues to be the largest market, with 4.4 million sqm, followed by Budapest with 3.24 million sqm, Prague with 3.03 million sqm and Bucharest with 2.16 million sqm of modern offices – the survey shows.
Last year, the total number of new deliveries in major Central and Eastern European capitals was 609,000 sqm, 16% higher compared to 2013. Most new deliveries were recorded in Warsaw – 45% of the total number, Prague with 24%, Bucharest with 19% and Budapest with 11%.
In 2015, the total number of supplies is forecasted to rise with 15%. Warsaw will continue to hold the record for the most deliveries, while in Budapest the number in new deliveries will continue to be limited. From the total number of 700,000 sqm scheduled for completion in 2015, 46% are in Warsaw, 26% in Prague, 22% in Bucharest and 6% in Budapest.
The total leasing activity in these capitals reached a number of 1.7 million sqm last year.
The lowest level of negotiations took place in Bucharest
The report also shows that renegotiations and contract extension totaled 626,000 sqm in Budapest (the highest level – 46%), followed by Warsaw with 30%. The lowest level of negotiations took place in Bucharest – 12% of the total volume.
The demand was mainly driven by the need the companies have to optimize and improve their working space. The most active companies in the segment of office space rentals were the Technology, Telecom and Professional Services. Prague experienced the highest level in trading in 2014. The demand was 32% higher than the previous year. The most active tenants were companies from Technology sectors, Telecom and Professional Services.
In Bucharest, the demand was higher by 38%, reaching the highest level from the past six years. Renegotiation and renewal of contractual terms has followed a downward trend. The most active tenants in 2014 were companies from the Technology and Telecom sectors.
Source : www.curierulnational.ro