The year-on-year inflation rate reached 15.9% in Q4 2022 in Romania, one of the highest levels in the European Union. Economic growth has been solid (+4.3% in 2022) as the local economy proved again its resilience considering the overall impacts of the inflationary pressures and continued conflict in Ukraine.
Office Space Bucharest
Q4 2022 has been a very robust quarter in terms of demand with 101,000 sq m transacted, the highest quarterly amount since Q4 2019. The total for the year reached 324,000 sq m (+8.6% compared with 2021). New supply in 2022 was just 124,000 sqm, the lowest since 2015. Vacancy rate reached 15.2%, consistent with the last 18 months.
The prime headline rent in Bucharest continued on their upward trend in Q4 2022, reaching a level of around €20/sqm/month in the CBD area, with further increases expected in other submarkets in the following 12 months due to the low office pipeline.
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Logistics Real Estate in Romania
The industrial and logistics market fundamentals remain strong, as the segment registered a new record year both in terms of supply and demand Thus, the total take up for 2022 was of almost 1 3 million sq m, reflecting a 28 growth when compared with 2021 with 370 000 sq m being transacted in Q4. In Q4 2022 over 337 000 sq m of warehouse spaces were completed in Romania, the development activity reaching 834 000 sq m during 2022. As a result, the modern industrial and logistics stock exceeded 6.4 million sq m nationwide.
Even though the rising development costs and the increasing energy and land prices continued to put pressure on the new projects’ asking rents, the prime headline level stood at a level between €4.25 4.50/sq m/month in Q4.
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Retail Real Estate in Romania
During Q4 2022, the retail market registered the completion of new projects consisting of 20,000 sqm GLA, bringing the total 2022 supply to almost 100,000 sqm GLA, a level in line with the last few years. Moreover, almost 600,000 sq. m of new projects are currently under different stages of construction and expected to be delivered by 2025, dominated by shopping centers (ca. 60% of the total new supply). Rental dynamics in prime shopping center locations were relatively stable in Q4 2022 at around €75-80/ sqm/ month in Bucharest.
Get more data by downloading the retail report.