Following the merger of Cushman & Wakefield and DTZ in 2015, C&W was able to retain its market leading position in the Hungarian office market sector for the fourth consecutive year, the company said today. Last year the company successfully closed 117 transactions, a record of 89,000 sqm in lease transactions, C&W said in a press release.
According to C&W, the Budapest office market continued the momentum created in 2014 into 2015, with another record year for take-up. Tenants committed to nearly 538,000 sqm of office space, reflecting a strong, 16% gain on 2014, which was the previous record year for take-up, the company said. This increase in demand, and the lack of new supply being delivered to the market further reduced the vacancy rate to a pre-recession low of 12.1%, creating lower vacancy rates in Budapest than in Prague or Warsaw, C&W said.
“There is no doubt that 2015 surpassed everyone’s expectations in terms of take-up,” David M. Johnston, partner, Head of Office Agency said. “We expect to see the markets positive momentum continue into 2016, as occupational activity remains relatively robust, supported by very little new speculative supply being released to the market”, he added.
According to Johnston, simple economics could see 2016 demand continue to outstrip supply, and the vacancy rate in Budapest is foreseen to continue to fall. “As the market continues to swing in favour of landlords, tenant incentives will continue to shorten for the best space thereby increasing effective rents,” Johnston said.