CBRE: Offices boost commercial real estate market in 2015
Rentals of office buildings were significant over the last year, constituting 50% of all traffic in the Hungarian commercial real estate market, which expanded by 60% compared to 2014, to reach approximately €745 million, CBRE said yesterday in a report.
Lóránt Kibédi Varga, CEO of CBRE Hungary, said he expects traffic in the Hungarian commercial real estate market to exceed €1 trillion by the end of the year. “We expect the increase of investment liquidity this year, due to the strengthening of bank financing, in the case of portfolio transactions over €100 mln, or in the case of real estate over €100 mln. If one or two transactions are closed out of these, the €1 tln can be exceeded”, Kibédi Varga said.
With regards to the office market, CBRE says vacancy rates have dropped to levels not seen since 2008, and as a result Budapest has performed better than its regional competitors Warsaw and Prague.
This year approximately 100,000 sqm of office space will be finished, however, since almost 57% of this space is already leased, vacancy rates in the capital are expected to remain low. Currently the average vacancy rate is around 12.1%, 4.1 percentage points lower than a year earlier, CBRE said.
The growth of household consumption in the last two years has contributed to the increase in demand on the retail real estate market, according to CBRE. CBRE registered almost 100 new store openings comprising approximately 35,200 sqm of retail real estate space, with the expansion of 79 brands in Budapest and the entrance of 14 new brands to the market. Some 31% of new leases happened in premium malls in Budapest amounting to 11,000 sqm, according to CBRE.
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