RSS
Real Estate: Office area traded in Bucharest exceeds 300,000 sq m in 2013
The total office area traded in 2013 was over 300,000 sq m, which is the highest trading volume ever for the market in Bucharest, according to the quarterly report of the office market drawn up by CBRE Romania, which was sent to Agerpres on Thursday.
The year 2013 was dominated by the transactions made by the tenants in the IT&C field: more than 100,000 sq m were traded in this sector alone.
Currently there are major differences between the occupational activity and indicators in various areas of Bucharest.
'We estimate that the activity for renegotiating and extending the existing contracts will go on in 2014 too, but the most important change in the time to come should be made in the pre-renting contracts. Having certain accounts that have already been active since the beginning of this year, a growing number of such contracts could be signed in 2014. As rents are now very attractive, tenants can get financial packages difficult to get in the future. The expectations early this year are for a sound trading activity and a low number of buildings to be delivered and these factors can contribute to the diminution of the non-occupancy rate from over 15 percent at present to under 13 percent in late 2014,' said Razvan Iorgu, CBRE Romania managing director.
Both the prime rental and the prime yield are stable as they were in the previous quarters: 18 euros/sq m/month and 8.25 percent respectively. It is only the presence of a pre-renting activity and of a new limited stock that can make us expect an increase in the prime rental by 2-2.25 percent at most for the end of 2014, say the CBRE Romania representatives.
With certain delays at the end of 2013, CBRE anticipates that 124,000 sq m will be delivered in 2014, of which 70 percent are developed in a speculative way. Some of the new buildings anticipated for 2014 are Green Court Bucharest-Skanska, AFI Park II and III-AFI Europe, Hermes BC-Atenor Group.
At present only three properties are being built for 2015 covering a total area of 31,000 sq m.