Robust Leasing Activity H1 2018 in Budapest Office Market
July 24, 2018
The leasing activity in the Budapest office market remained strong with more than 253,000 sq m office space leased in the first half of 2018. In total, commercial real estate agencies were involved in 173,000 sq m of office leasing transactions, from which CBRE completed the largest amount of transactions, 42,245 sq m equating to 24.4% market share in the Agents market.
Following the strong first quarter this year the second quarter saw an even higher level of demand for office space in Budapest, equating to an increase of 64% compared to the same time frame 2017. Q2 2018 also saw the year’s largest pre-lease agreement since 2015, with Evosoft signing for its new Head Quarters in the Univerzum Office Building located in the popular South Buda submarket.
The average asking rent level continued to increase in Budapest and by the end of Q2 2018 this equated to €11.84 / sq m / month, this reflects a 5% higher level than for the same time in 2017.
Another boost to Budapest’s office market is the expansion of developments as there is 461,800 sq m office space under construction, of which 168,200 sq m is still expected to get handed over this year.
Judit Varga MRICS Head of Office – Advisory & Transactions, stated: “2018 is continuing the strong level of demand left off in 2017, and we expect the year to transact a high level of office space in Budapest. The new committed supply will go some way to alleviate the pressures of low vacancy for high quality office space, and if the Hungarian economy continues to perform as it is now, we expect a very strong 2018.”
“It is a great accolade to of transacted the largest amount of office space H1 2018, and I am thankful to our clients for their continued trust in CBRE, and to the CBRE Office team members for their impressive efforts and energies to date”,David M Johnston MRICS Senior Director, Head of Advisory and Transaction Services at CBRE Hungary stated.
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