Report: Companies lease office space for over 7,000 new employees in Bucharest in H1 2025
<p>The office market has shown resilience and growing traction in the first half of 2025, with companies leasing office spaces for more than 7,000 new employees. According to Cushman &amp; Wakefield Echinox’s latest Office Marketbeat Q2 2025 report, over 340,000 employees are now working in modern A and B Class office buildings in the capital, representing nearly one-third of the city’s workforce.</p>

<p>In total, 64,300 sqm were taken up in net leases in H1, meaning new contracts that exclude renegotiations. The IT&amp;C sector led the leasing activity with 25% of net demand, followed by FMCG and retail operators with 17%, and financial services companies at 15%.</p>

<p>While overall gross take-up in H1 stood at 121,400 sqm, down 28% compared to the same period in 2024, market momentum picked up significantly in Q2. After a sluggish Q1 with just 51,300 sqm leased, demand rebounded in the second quarter with a 37% increase, totaling 70,100 sqm.</p>

<p>Currently, around 132,300 sqm of office space are under construction in Bucharest, with more than 90% scheduled for delivery between 2026 and 2027, according to the same report. These future projects are expected to accommodate another 15,000 employees, potentially increasing the modern office workforce in Bucharest to nearly 360,000 by the end of 2027.</p>

<p>The most dynamic areas for office employment remain Center-West with approximately 65,000 employees, Floreasca-Barbu Văcărescu with 60,000, and the central area with nearly 50,000.&nbsp;</p>

<p>Key projects include Vastint’s new phase of Timpuri Noi Square (55,000 sqm), PPF Real Estate’s ARC Project (30,000 sqm), Promenada Offices (23,400 sqm) by NEPI Rockcastle, and One Technology District (20,600 sqm) by One United Properties.</p>

<p>Despite this new wave of development, overall supply levels are significantly below the market's historic average. Between 2014 and 2023, Bucharest saw an average of 153,000 square meters of new office space delivered annually - well above the current pipeline.</p>

<p>Meanwhile, the city’s office vacancy rate dropped to 13.4% by the end of Q2 2025, marking the lowest level since Q2 2021. With no major deliveries expected for the remainder of the year, vacancy is projected to continue its decline. New demand is expected to focus on available space in existing buildings, particularly in well-connected and central submarkets.</p>

<p>Rental levels remained largely stable during Q2. Prime office rents in Bucharest’s Central Business District ranged from EUR 20.00 to EUR 21.00 per square meter per month. Other central and semi-central locations offered rates between EUR 15.00 and EUR 18.00, while peripheral areas remained more affordable, with monthly rates from EUR 9.00 to EUR 13.50 per square meter.</p>

<p>Cushman &amp; Wakefield Echinox expects mild rental growth in landlord-favorable areas such as the CBD and city center, driven by low availability and continued interest from tenants seeking efficient, well-located spaces.</p>

<p>Mădălina Cojocaru, Partner at C&amp;W Echinox’s Office Agency, noted that despite a dip in gross leasing activity, the market remains fundamentally strong. “With no new deliveries anticipated in 2025, the current conditions are favorable for the absorption of existing spaces and may support moderate rent increases in areas with limited supply,” she said. “We expect demand to stabilize, with ongoing interest in relocations and portfolio optimization through the end of the year.”</p>

<p><i>irina.marica@romania-insider.com</i></p>

<p><i>(Photo source: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">M</a></i><em><a href="https://www.dreamstime.com/" rel="noopener" target="_blank">onkey Business Images/Dreamstime.com</a>)</em></p>