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Real estate: The most expensive areas for office rents in Bucharest
Downtown, west side offices and those in Floreasca area in Bucharest which concentrate half of the renting activity and where future projects will develop in the future at highest prices, but the differentiation of rents according to areas returns.
“While in 2009 when the crisis was the highest, the main argument was the lowest rent, and ideal 10 euro/sq.m/ month, as of 2013 arguments have become more complex, the main concern being the employees’ satisfaction on the job. The crisis brought along the flatness of rents, the difference between Victoria Square, Center West versus Floreasca or between Dimitrie Pompeiu and West being reduced,” a press release of JLL real estate consulting company shows.
In 2008 leasing contracts were signed with 22-25 euro/sq.m/month in Victoria Square, 18 euros in Floreasca and 16 euros in Grozavesti. In 2012 rend dropped to 16-18 euros/sq.m in Victoria Square, 14-16 euro in Floreasca and 14-14 euro/sq.m in Grozavesti and 12-14 euro/sq.m in Dimitrie Pompeiu.
“This evolution is the result of pressure made by tenants on the rent level and relocation was based on the employees’ accessibility to the office and a low rent level. In the crisis period the pressure on costs was so high that the trend was considered a natural one. Rents dropped in every area but differences among areas followed the same tendency,”JLL consultants explain.
In their opinion, difference among areas will clearly come back in future years and the highest rents will be registered in areas where projects will develop.“80% of office demand in Bucharest comes from three areas: down town, West and Floreasca, where half of renting activities concentrate and where projects will take place in the future.”
Floreasca has attracted over 50% of office demand this year and was followed by Victoria Square with 10.53% and Center-West area with 7.63%.