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Bucharest Office Space Rents To Hike By 25% In ’08 – DTZ

Rents for office spaces in Romania's capital city Bucharest might climb by 25% this year, an evolution close to the one registered in 2007, as supply will continue to be lower than demand, according to estimations by real estate company DTZ Echinox.
Bucharest Office Space Rents To Hike By 25% In ’08 - DTZ
10 ian. 2008, 15:14, English

"Since the supply is still low, compared to the ever rising office space demand, the rent levels climbed by at least 20% in the previous year. Under these circumstances, we estimate a new hike for 2008, which would not be greater than 25%," said DTZ office department senior adviser Mihaela Cnobloch in a press release.

She said that office spaces stocks are already depleted in Bucharest, since the market is dominated by pre-lease contracts. Thus, office occupancy reaches 99%.

"Office spaces completed before 2008 reached some one million square meters. We estimate that the total office space will reach over 1.4 million square meters before the end of the year," Cnobloch added.

According to DTZ, the areas favored are in the north, namely Baneasa, Pipera and Barbu Vacarescu.

Also, company analysts estimate for 2008 a downward trend for output on this market, going below 6%.

According to the most recent data available, average rents for office spaces in Bucharest were around EUR19-20/square meter per month in the past year.