The Bucharest market delivered sharp growth in 2006, with over 100,000 m[sup]2[/sup] in office take-up over the first six months alone, and 70% of space secured on a pre-let basis. This is one of the main conclusions of a new Emerging City Winners report by Jones Lang LaSalle. The global property advisor sees demand levels remaining high until 2010 at around 200,000 m[sup]2[/sup] per annum.
The Bucharest market delivered sharp growth in 2006, with over 100,000 m2 in office take-up over the first six months alone, and 70% of space secured on a pre-let basis. This is one of the main conclusions of a new Emerging City Winners report by Jones Lang LaSalle. The global property advisor sees demand levels remaining high until 2010 at around 200,000 m2 per annum.
The vacancy rate for Grade A offices, which remained below 5% over the last five years, is expected to fall to about 2% by the end of 2006. Prime office yields have fallen from 14% at the end of 2003 to about 7% in the end of last year, Jones Lang LaSalle said.
The Romanian market is poised for growth in both demand and supply across all property sectors, supported by a rapidly maturing real estate sector and increased transparency over the next five years, JLL said. The growth is also related to structural reforms associated with Romania's entry into the European Union this year.
With Bucharest forecast to be Europe's fastest growing city economy, the international property advisor opened a new office in the Romanian capital at the beginning of January 2007. 'Bucharest will emerge as one of the CEE region's core real estate markets before the end of the decade', said Jeremy Kelly, a director in the team at Jones Lang LaSalle.
