Sanja Bastic, consultant at Danos – Demand for premium office space growing

(Sanja Bastic) The intensification of activities in the sector of office space has been present since 2015. A large number of local and foreign investors present in the market are completing the existing or starting or announcing new projects, Sanja Bastic, consultant at Danos, says in her interview for eKapija.

As she explains, investors focus on Belgrade, as the center of all important institutions, companies and operations.

– Last year was one of the most dynamic years when it comes to construction, and Belgrade ended 2016 with over 800,000 m2 of office space. The demand for office space in 2016 was also larger than in 2015 – Sanja Bastic says for eKapija.

eKapija: What are the most frequent demands of renters of office space?

– The demands are various and depend on the company’s core activity for the most part. For example, IT companies like an open space arrangement, whereas law offices opt for separate offices. In most cases, it’s some combination of the two. General requirements pertain to location, area, the length of the lease and the available budget. Other demands, related to equipment and other characteristics, are subject to agreements with the investor or the owner. Regarding the types of office space, most companies opt for conventional office space, whereas marketing companies, private clinics and international schools prefer representative, luxurious houses and apartments in Dedinje, Senjak, Vracar or Vozdovac.

eKapija: What is the relation between the price and quality of office space like?

– It is good and for the most part a realistic reflection of the characteristics of the space in question and the lease price. A certain price range relative to the office space class has solidified. Class A office space can cost from EUR 14.5 to 16.5 per m2, and from EUR 2.5 to 3.5 per m2 if service costs are included. Class B office space ranges from EUR 10 to 12 per m2, with service costs depending on the owner, but not exceeding EUR 2 per square meter, and sometimes being absent altogether. Leasing residential space for business purposes ranges from EUR 6 to 10 per m2 and depends on location, area, the length of the lease and the state of the premises.

eKapija: What do the projections show as to how the prices will develop further?

– According to our projections, the prices will not change considerably in the period ahead. The biggest and the most numerous clients currently come from the IT sector as the fastest growing industry.

eKapija: What is the demand for premium quality office space like?

– I have to point out that new office building projects closely follow all the most prominent trends in construction and design, pertaining not only to architectural solutions, but to top standard construction itself. I’d like to mention the so-called smart buildings, facilities containing materials and systems which contribute to lower energy consumption and simplified maintenance, as well as green buildings, featuring top level energy efficiency. In 2016, six facilities completed the process, and four were awarded with the prestigious gold LEED plate (Leadership in Energy and Environmental Design). I’d also like to mention GTC FORTYONE, among others. I’d like to note that clients have recognized investors’ efforts and that the demand for premium office space has grown since last year, as shown by the above.

eKapija: What is the demand for lower and medium quality office space like?

– Companies with smaller office space lease budgets are among the more significant clients directing their demand towards medium level projects, or Class B office space. Belgrade covers clients interested in modern office buildings to a great extent and will continue to do so, but there are still clients who opt for residential property as their future business premises due to a smaller budget and a lack of good medium level office space. One of the ways of solving this is by reconstructing and adapting office buildings around 30 years old, which are present throughout the city, so as to enhance the offer within Class B.

eKapija: Aside from Belgrade, what are the offer and the demand like in other parts of Serbia?

– As I’ve already noted, most investments and projects still pertain to Belgrade. Cities like Novi Sad, Kragujevac and Nis can mostly meet the current demand. As for the secondary cities, the offer and the demand are mostly local in nature and relate to reconstruction and adaptation, whereas the construction of new office space is less frequent.

eKapija: Is there need for new office space? Do you have any information about the arrival of new investors?

– In the past period, there have been announcements of new investments in the construction of office space. The latest in the line are MPC’s announcements of the construction of the second Usce office tower and the presentation of the Skyline project, whose investor is AFI Europe and whose total area will amount to 68,000 m2, of which 30,000 m2 will be taken up by the office tower. Aside from local investors, the most important role in the office space market is still played by Israeli investors. There is interest, and the realization mostly depends on the total economic and political situation.

eKapija: What was 2016 like for Danos and what are its projections for 2017?

– The year 2016 was successful for Danos in every aspect. We’ve continued cooperating closely with the majority of our regular clients, while also establishing excellent cooperation with new ones. We can proudly say that clients recognize out expertise, responsibility and dedication to meeting the demands and requirements which they’ve contacted us for. Furthermore, we approach each client with the intention of finding the best solution for their needs.

eKapija: What are the company’s plans for the coming period?

– In the next period, in addition to all our current activities, we will work intensively on developing all our sectors, focusing on clients interested in sales and purchase, as well as expanding the offer within the agency sector. Furthermore, we will continue investing in professional development of our employees and active participation in the market.

The Special Edition Newsletter “Real Estate in Serbia – New Wave of Investments Stimulating Economy” can be found HERE.

Danos and Associates d.o.o. Beograd

Special Edition Newsletter eKapija

eKapija Special Edition Newsletter

Special Edition Newsletter Real Estate

Special Edition Newsletter Real Estate in Serbia

Special Edition Newsletter Real Estate in Serbia New Wave of Investments Stimulating Economy

building permits

office space

apartment building

facility management

Sanja Bastic

open space

smart buildings

green buildings

LEED

Leadership in Energy and Enviromental Design

GTC FORTYONE

MPC

Skyline

AFI Europe