A new report from Cushman & Wakefield finds that rents on the Budapest office market are set to rise, with the continued recovery being driven economic growth along with solid supply and demand fundamentals. Boasting Europe’s strongest growth, Hungary’s economy is sparking occupier activity, which should remain robust in the second part of 2015. With limited development of class A space since the turn of the decade, vacancy rates (now at 14.2%) have steadily decreased and now sit below Central European competitors such as Prague for the first time.
“The Budapest office market continued its rally in the first half of 2015: take-up levels reached 280,000 sqm of which Q2 alone has seen 213,500 sqm. This is the highest quarterly figure on record, whilst the high activity was supported by a few significant deals, such as the T-Com’s pre-lease of 55,000 sqm. The outlook for the remainder of the year remains positive, and as demand continues to outstrip supply, the vacancy rate in Budapest will continue to fall further resulting in tenant incentives to continue to shorten for the best space,” commented Orsolya Hegedus, Associate, Head of Research at Cushman & Wakefield Budapest.
