The Budapest Research Forum hereby reports its Q3 2021 office market summary.
October 20, 2021
The Budapest Research Forum (hereinafter the ‘BRF’, which comprises CBRE, Colliers, Cushman & Wakefield, ESTON International, JLL and Robertson Hungary) hereby reports its Q3 2021 office market summary.
The total modern office stock currently adds up to 3,955,600 sq m, consisting of 3,309,000 sq m of ‘A’ and ‘B’ category speculative office space as well as 646,600 sq m of owner-occupied space.
In the third quarter of 2021, there was no new supply delivered on the Budapest office market. During this quarter 7,100 sq m were moved from the speculative to the owner-occupied space, consisting of two office buildings.
The office vacancy rate decreased to 9.1%, representing a 0.7 pps decrease quarter-on-quarter and a 1.0 pps increase year-on-year. In line with the preceding quarters, the most occupied submarket was North Buda with a 4.6% vacancy rate whereas the highest vacancy rate remained in the Periphery (31.8%).
Net absorption rebounded to positive territory during the quarter, as the total occupied stock increased by 29,300 sq m.
Total demand reached 81,500 sq m in Q3 2021, representing a 17% decrease quarter-on-quarter, but a 3% increase year-on-year. New leases overpowered regarding the share of total leasing activity with 60%, followed by renewals in the existing stock with 22%, pre- leases in new developments amounted to 11%, while expansions of existing premises reached 7% of the total demand.
The strongest occupational activity was recorded in the Non-Central Pest and Váci Corridor submarket, attracting 22% and 21% of the total demand. The Central Pest and South Buda submarkets attracted 18% and 14% of the transactions, and 10% of the total demand was realised in the CBD submarket.
According to the BRF, 146 lease agreements were concluded in Q3 2021; the average deal size amounted to 560 sq m. The BRF registered seven transactions concluded on more than 2,000 sq m office space, including five new leases, one renewal and one pre-lease.
The largest new agreement was signed for a total of 4,300 sq m in BudaPart City office buildings, while the largest renewal was a 3,800 sq m deal in Terra Park C.
The Q3 2021 office market statistics continued to reflect the uncertainties and economic slow-down triggered by the COVID-19 pandemic. While quarterly demand remained somewhat weaker than in previous years, the
gap narrowed as the number of transactions showed recovery and vacancy rate slowly begins to decrease.
Some of these cookies are essential, while others help us to improve your experience by providing insights into how the site is being used.
Accept Recommended Settings
Necessary cookies enable core functionality such as page navigation and access to secure areas. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.
Analytical cookies help us to improve our website by collecting and reporting information on its usage.
We use marketing cookies to help us improve the relevancy of advertising campaigns you receive.
Social Sharing Cookies
We use some social sharing plugins, to allow you to share certain pages of our website on social media.