Most new investments in office buildings have been concentrated around Bucharest’s university centres, which have become increasingly attractive for real estate developers, a survey by CBRE shows.
In Bucharest, over 300,000 people are currently working in modern Class A and B buildings, not counting the employees in the unconventional office spaces or Class C buildings, data gathered by CBRE shows. Accordingly, a total of 40,000 students enrol in Bucharest’s 16 universities, representing the pool of future employees for the big companies.
Romania has become an attractive market for investments in the past years, when increasingly more foreign companies have shown interest in expanding their activity at a local level, in particular due to the availability of qualified staff, the economic development and workforce expenses lower than other regional markets.
“We have the potential to become a regional business hub, and this is due to a superior intellectual and linguistic abilities of employees in our country. Moe than 90 percent of the total number of students are proficient in English, a decisive factor and a reason why an increasing number of companies announce new investments in large Romanian cities. The local universities have understood that and have adapted their curriculum to the real demands of the labour market,” Mihai Paduroiu, CBRE head of advisory&transaction services said.
Except for the northern part of Bucharest, which attracts around 28 percent of the existing stock of modern offices projects, most other are coated near one or several known universities.
“Numerous multinational companies organize within universities several courses to better prepare students and future employees. Consequently, the number of internship programs has increased year on year and relations between companies and organisations has become more solid. Bucharest is one of the most important outsourcing destinations in the region, with over 40,000 employees in the sector. We expect a minimum growth of 10-15 percent on this segment, due to an increased demand from companies that want to enter the Romanian market,” Mihai Paduroiu said.
ITO and BPO companies represent 65 percent of the total number of companies surveyed by CBRE.
In central Bucharest, Vastint Romania, part of Interogo Holding is developing the Timpuri Noi Square complex, which will consist of 6 buildings with a total leasable area of 100,000 square meters. The project is located in the vicinity of Titu Maiorescu, Dimitrie Cantemir and Nicolae Titulescu university centres.
Campus 6 is another example of office buildings, developed by Skanska Romania near the Politehnica University of Bucharest, where 6,000 new students enrol every year.
New projects are planned to start in the Piata Presei – Expozitiei area, where real estate developers see the potential for the development of a business hub.
The western part of Bucharest is also attracting new office buildings projects, with Skanska, Vastint, CA Immo, AFI Europe and Forte Partners lined up to develop new projects.