Continuing low levels of new office supply are improving the health of Budapest’s office market, as vacancy fell another 2.2 percent in 2014. While still high at 16.2 percent, the Budapest Research Forum reports that vacancy has at least been reined in from the low-20’s range where it spent the early part of the decade. The biggest improvement over the last quarter of 2014 was the 2 percent drop in Central Pest to just 12.8 percent. That was despite 6,120 sqm of new space in Corvin Corner, one of three new buildings to be handed over in QIV. The others were Vision Towers (9,075 sqm) in the Vaci corridor and a 3,600 sqm building refurbished in south Buda. Total take-up in the last quarter of the year was 117,000 sqm, of which 44,475 sqm was new leases and 53,110 sqm came in the form of renewals. Total net absorption for the September to December period was 37,110 sqm.
