Romanian Regional Cities Office Snapshot H1 2022

The Regional Cities Office Snapshot provides a general market overview on the regional office hubs in Romania and the opportunities they can offer to office tenants, real estate developers and investors. Regional markets can provide attractive alternatives, and also room for expansion and further growth in Romania.

In H1 2022 total property investment volume in Romania reached €326 million, a value comparable to H1 2021. In H1 2022 offices represented 63% of total investment volumes, followed by industrial, with 20%, and retail, with 12%. Bucharest accounted for 83% of the total investment value in offices in Romania, considering deals of at least €5 million. 

By far the largest office investment deal in H1 2022 was the sale of Expo Business Park in Bucharest, by Portland Trust to S Immo. The second largest office transaction in H1 was the sale of One Victoriei Center by One United Properties to Indotek.

Prime office yields were stable during H1 2022, at 6.75%.

Average net wages in regional cities are considerably lower compared to Bucharest. Brasov is the most price-competitive, with €734 per month in May 2022, slightly below the national average of €797, while Cluj- Napoca is the closest to the average net wage in Bucharest, with €983 office investments are most likely to continue to dominate the market until the end of 2022 and also 2023.

Strong employment market in the western cities, with low vacancy rates, of less than half of the national average and comparable or even lower than in Bucharest, if we consider Timisoara.