Constanta, Iasi tops list of areas with biggest rent discounts

Constanta, Iasi tops list of areas with biggest rent discountsRents for Grade A, B or C office space in Constanta and Iasi dropped 41.5% over the past year, according to imobiliare.ro.

If in March last year, the asking rent for office space in Constanta was €11.59/sqm/month, negotiations now start from €6.78/sqm/month.

Notwithstanding the 41.5% drop in asking rent, Iasi is two notches above Brasov, Constanta and Timisoara, taking up the second spot after Cluj Napoca in a list of office locations by asking rents. For the time being, office rents in Iasi average €7.05/sqm/month, against €12.04/sqm/month a year earlier.

Brasov and Cluj-Napoca 30% discounts in rental rates

In Brasov, office rents dropped 31% over the past 12 months. In March last year, the average asking rent was €9.27/sqm/month, and now, Brasov office space landlords lowered the rents to an average €6.40sqm/month. Of all the cities under review, the lowest office rents were observed in Brasov.

In Cluj-Napoca, office rents dropped 30.7% in the past year, from €10.26/sqm/month in March 2009 to, €7.12/month/sqm now.

“Over the past two years, a number of office projects have been delivered in the city, and many villa landlords in central or semi-central areas shifted their focus to office spaces, as the residential market remained frozen”, said Adrian Erimescu (photo), managing director imobiliare.ro.


Bucharest and Timisoara smallest declines

In Bucharest, discount rents for Grade A, B or C office space averaged 26.7% in March 2009 – March 2010, from €14.1/sqm/month to €10.33/sqm/month. Currently, the average asking rent for Bucharest CBD locations is €10.90 /sqm, 26% below year-ago levels.

With an annual variation of -20.1%, Timisoara recorded the lowest rate of decline in office rents. With a significant number of office buildings delivered in the market, the average asking rent is €6.90/sqm/month from €8.64/S sqm/month.

Imobiliare.ro portal was launched in January 2000 and has over 16,000 unique visitors per day. The majority shareholder is the US-based PE fund New Century Holdings (NCH),that also holds Vel Pitar in Romania.