Flexibility that Creates Space – IWG is Redefining the Office Market in Hungary

IWG, the world’s the world's largest platform for work, responds to this need. In Hungary, IWG is already present in 24 locations under various brands – Regus, HQ, Spaces, and Signature – and continues to expand significantly, now reaching beyond the capital into regional cities, smaller towns and local areas closer to where people live. We discussed the company’s expansion strategy, the unique characteristics of the Hungarian market, and why today’s office business is not just about offering space but building genuine partnerships with László Márkus, Managing Director of IWG Hungary. 

-    Before we get to the main points, can you please clarify what exactly each brand name stands for? 

-    IWG – International Workplace Group – operates in 120 countries across more than 4,000 locations, and this number continues to grow so rapidly that this year alone, announced in our H1 2025 results, we signed 496 centres, surpassing total growth in our first decade of operations – a remarkable achievement. In Hungary, this means signing ten partnership agreements, which doesn’t lead to immediate openings but marks the beginning of the process. IWG is the parent company that operates various brands, including Regus, HQ, Spaces and Signature. Across our portfolio, we provide solutions for every requirement, from our premium offering to more cost-efficient workspaces. Our largest brand Regus, for example, here at Mill Park where we’re having this interview right now, offers professional workspaces design for productivity. HQ provides hassle-free centres on more of a budget, serving customers in locations such as Fehérvári út. Our high-end Spaces brand, provides inspiring environments with a creative entrepreneurial feel, is similarly successful in Hungary – with locations like Corvin Towers and the White House on Váci út. We also use our premium Signature brand in Hungary, which we operate at Szervita tér.

-    I assume the centres aren’t equally successful. What criteria do you use to decide where to open and which brand to use? 

-    Market knowledge, preliminary surveys, and feedback from partners – all of these play a crucial role, and we are seeing very significant levels of demand across our network as outlined in our Half Year results released earlier this month. We opened a Regus in Infopark in April, and we already had excellent demand with multiple customers at the time of opening. Location is still a key consideration on the real estate market, but today it means something different than it did a few years ago. For many, it’s important to be able to easily leave the city on a Friday after work, and head towards Lake Balaton, for example. Mill Park is popular because the city center is easy to reach – just a few tram stops away – and daily commuting from the suburbs is also convenient. We have 24 centers in Hungary, with the newest Regus opening in Miskolc on 1 August. We have two buildings in Debrecen, our Pécs center is operating at full capacity, Szeged is performing well, Szentendre has also found its customers, and our Regus offices are becoming increasingly popular in Tópark, located on the border of Biatorbágy and Törökbálint. 

-    What is the total floor space of your facilities?

-    The total floor space of our workspaces in Hungary is 22,000 sqm, with each centre ranging between approximately 800 and 3,000 sqm. 

-    The most compelling benefit of managed offices is flexibility. What do your customers expect from you?

-    Customer needs are constantly changing, and we fully adapt to them. Companies aren’t looking to be tied into long, expensive and inflexible leases, they want flexibility. They want to be able to scale up or down their footprint as their business needs and that’s why our solutions are so popular. This is a common feature for small and medium-sized businesses who can use our offices as required, on a weekly, monthly or quarterly basis for example, as their needs demand. Regardless of the agreement, our customers can welcome employees and their clients in a professional and elegant environment, with a reception and a contemporary design lounge. Our centres offer state-of-the-art private offices, meeting rooms, coworking and creative spaces, with access to a shared kitchen. We take care of all services - utilities, IT, high-quality broadband, cleaning and professional support - it’s all designed to help teams stay connected, productive, and protected - wherever they work. Our Design Your Office service allows companies to tailor their space entirely to their requirements, enabling them to scale up or down at significantly reduced costs while reaping the rewards of increased productivity via a more efficient, engaged workforce. Research shows that greater flexibility over how and where employees work offers a multitude of benefits for workers, including enhanced work-life balance, financial savings and health benefits. In fact, Hybrid working offers companies a significantly lower cost base with an average saving of $11,000 per employee and our latest research with Arup found that hybrid working can boost productivity by 11%.

-    And what does the membership card cover? 

-    IWG membership enables access to all of our global locations and business services via the IWG app. With over 4,000 centres across 120 countries, a meeting room, say in Paris, is just a few clicks away. This is also true for our other services. It often happens that a small company uses an office for employees who work on-site regularly, but other colleagues may need to come in from time to time. The beginning of the week, up to Wednesday, is quite busy with the building fully occupied, while the second half of the week is quieter due to the nature of hybrid working. With an IWG membership card, non-core team members can also come in and use our services, depending on the package they have purchased. 

-    As we talk, I can see several people arriving at reception. Let’s assume they are the managers of a start-up company. What would your sales rep tell them about when they could move in here, at Mill Park?

-    They could move in as early as tomorrow. Our sales representative would begin by offering a guided tour of the available workspaces - ranging from private offices and meeting rooms that can be booked by the hour, to coworking desks, creative zones and our virtual office package. With a brand and price point to suit every need, we are able to tailor solutions to businesses of all sizes and sectors, depending on where and how they prefer to work. The team would also walk them through our full suite of services and 24/7 business support. This includes IT and digital solutions, outsourcing, admin and customer service, even event coordination, courier services and catering. Whether the best fit is here at Regus Mill Park or across one – or several – of our 24 centres, we’ll help them find the right space. In fact, we often show clients three or four locations to better understand their needs and ensure the workspace truly works for them. Anyone interested in a workspace can reach out via our website or visit the centre directly to find the package that best suits their needs. 

-    What do you mean? Are you getting to know each other, building rapport? 

-    Yes. We look at how our prospective customer’s week is spent – how many employees come into the office and how often, whether they need parking, whether they have visiting customers and how important specific public transport connections are to them. Based on all this, we offer a solution. The average contract length is 10 - 12 months. 

-    Who are your customers? Our centres provide workspaces for our companies of all sizes, from start-ups to established and international firms, across a range of industries. We count 83 per cent of Fortune 500 companies among our global customer bases. When deciding on a location, a law firm – for example – may prefer to rent space in downtown Budapest, partly because of the proximity to the courts and partly for prestige, while IT companies prefer locations like Allee, Mill Park, or the White House. Networking is important to many companies. They look for places where they can find more of this opportunity.

-    You mentioned centres with total office spaces between 800 and 3,000 sqm, but what about smaller cities where the local economy can’t support that much space? Companies are increasingly looking to give their employees to access a network of workspaces - enabling them to work where is most convenient and productive. This includes smaller towns and cities, where our smaller centres still offer IWG’s comprehensive flexible workplace solutions. In Hungary we are considering business hubs, in locations such as near Lake Balaton or at busier train stations. This means quick workspace solutions. For example, if our customer is on holiday in Siófok but life requires them to handle some important and urgent meetings, we want to provide the space for that – both literally and figuratively. This is also a flexible solution, and I can envision its future applications. Last year Budapest was ranked the world’s best workcation city by our ‘work from anywhere’ research, and this year Tokyo took the top spot by just one and a half points – but Hungary is still among the leaders. The ability to work productively while travelling or on holiday is a significant advantage. This cannot be ignored; it requires a response, and we create the opportunities to facilitate this.

-    Where do you see the company in five years’ time? 

-    We see significant room for growth in Hungary and across the globe. The way businesses operate has transformed drastically, with companies of all sizes embracing platform and flexible working for the long-term and this is leading to exponential growth of the industry. It is predicted that 30% of commercial real estate will be flexible by 2030. The potential for further growth is estimated at 1.2 billion white collar workers globally and a total addressable market of more than $2 trillion. Our long-term vision for IWG is to offer workplace solutions in every corner of the world, helping employers and employees work more productively. In our H1 2025 results we reported record-breaking growth, signing 496 centres, with a strong pipeline ahead. In Hungary we plan to have 35 centres by the end of 2030. Our strategy is focused on three pillars: expanding our footprint, deepening our presence in high-demand cities and suburbs, and strengthening our partnerships with real estate developers. First, we continue to grow our network through asset-light models - working with franchise and real estate partners who see the long-term value in flexible workspaces. Second, we’re investing in new locations in key urban and suburban areas to meet the growing demand for work hubs close to employees’ homes. Thirdly, I’m confident that in a few years, we will have diversified our portfolio beyond our existing brands, offering a solution for every market. Our recent partnerships with Jabbrrbox, Yoo and SmartLabs expand our reach in transport hubs, science focused real estate and innovative workspace design. We are also looking to expand towards the entertainment industry and healthcare as well, offering wellness and more clinical spaces alongside traditional workstations. The opportunity is clear: companies want flexibility, employees want choice, and cities and suburbs want smarter, more dynamic work ecosystems. IWG is well-positioned to lead that transformation.

-    You are also strong in the region. What do you think makes the Hungarian market different from the neighbouring countries? 

-    While each market has its nuances, we’re seeing increasingly similar trends across the region. In Hungary decision-making tends to be more deliberate, with clients often planning well in-advance – even requesting proposals for the following year. This reflects a strategic approach that allows for more tailored solutions. 

-    The fact that a company plans ahead is good for IWG, isn’t it?

-    Yes, absolutely. Forward planning is a strong signal for IWG, as it reflects the growing demand for flexible workplace solutions. It reinforces our commitment to expanding our global network and attracting new partners, ensuring that businesses of all size can find the right workplace solution where and when they need it. With every new location and partnership, we strengthen our global leading position in the industry and create even more opportunities for growth.

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