15.04.2024
The Brasov office market size and pace is dictated by the pipeline of university students (c.a. 20,000 per year), ranking 5th after Bucharest, Cluj, Iasi, and Timisoara. The modern stock was maintained at 155,000 sq m, with no new developments in 2023.
However, AFI obtained the building permit to continue building Phase II (10,000 sq m) for the office park adjacent to the AFI Brasov Mall, with an expected delivery date in 2026.
The headline rent slightly increased to 13.5 EUR/sq m, even though the pace of take-up was as slow as in 2022. Fewer than 5,000 sq m were transacted in 2023, mainly by IT & C companies. The take-up trend aligns with other regional leaders, where new absorption was less than 10,000 sq m / per city through 2023.
While the average wage in Brasov is 1,400 EUR/month, below Cluj, Timisoara, and Iasi, work from home and hybrid policies led to a supply of subleases, whereas new entrants preferred to focus on the opportunities offered by the talent pool in Romania’s main city.
Remote work, which allows talent from anywhere to connect to a virtual delivery office also contributed to the slower take-up throughout the country. In Brasov, remote workers are served by co-working, such as The Business Factory located in Coresi. Raiffeisen Bank also offers a few co-working offices through its Hub1317 program.
Strong multinational tenants in IT&C, BPO / SSCs, and retail are being served by the existing three business parks in the city, AFI Offices, Coresi Business Park, and Brasov Business Park. The latter might resume construction of its next phase during the medium term, subject to demand.
The outcome of the public debate on the zoning and services required by the 36ha urban regeneration of the former Rulmentul factory might dictate a new development pole on the long term.
