Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
“Achieving a balance between CEO expectations for office-based work and talent preferences for remote work will be crucial in receiving top talent and optimizing operational effectiveness,” comments KPMG. The Big Four consultancy sees the development of the BSC sector as “a journey from back-office to innovation hub.”
The establishment of speculative office markets in Central Europe emerged on the back of demand for shared service centers that have morphed into BSCs, reflecting a more complex and diversified role for the business concept.
In Poland, the most significant office market in the region, 55 new BSCs were established in 2024. The sector employs over 480,000 people across 2,000 centers, according to the Polish Investment and Trade Agency.
In Hungary, there are currently 215 companies with BSCs in the country with 110,000-plus employees, according to the Hungarian Investment Promotion Agency. These companies are also increasingly establishing offices in emerging provincial tier-two cities with strong university backgrounds, such as Székesfehérvár, Miskolc, Debrecen, Pécs, and Szeged.
Outside of the capital, the U.S.-based Support Services Group (SSG) has extended its presence in Hungary with a new EUR 2.5 million operation in Szekszárd, some 156 km south of Budapest by road, with support from Hipa.
“Hipa has never negotiated as many research and development projects or business service center-related developments as in 2025,” comments István Joó, the agency’s CEO and also the Government Commissioner for Investment Promotion and Implementation of Large FDI Projects.
BYD, the leading Chinese EV manufacturer, has purchased the 32,000 sqm IP West office complex in District XI for use as its headquarters. The complex will serve as the European business and R&D headquarters of the company, which is building its first European car factory in Szeged (175 km southeast of the capital), although it has just announced a delay in that project.
“The company will employ over 2,000 people at its new headquarters that will serve as the central hub for BYD’s European operations, driving innovation, covering R&D and high value-added services,” commented Kata Mazsaroff, managing director of Colliers Hungary, who worked for BYD on the transaction.
The earlier generation IP West was delivered in two phases between 2009 and 2011 by AIG/Lincoln. Following extensive renovations by CA/Immo, the building became the first existing building in Budapest to achieve WELL “Gold” certification.
The 11,000 sqm Diageo headquarters at Green Court Offices in the Váci út Corridor, developed by Codic and certified at BREEAM “Excellent” level, has a global and regional role for finance, HR, procurement, and IT. The 1,400-person staff enjoy use of an on-site gym, café and rooftop bar, among other amenities.
The Váci Corridor remains the most favored development destination in Budapest, attracting several BSCs. The area provides direct access to the M3 metro line. In addition to office development, a number of residential projects have been delivered in the area, providing easy access to commercial centers.
From the tenant perspective, location is critical; the office should be easily accessible, and its design should be tailored to the needs of the people working there, providing the right conditions for efficient working.
“Today, it is also a natural expectation that you should not have to travel long distances to reach services such as restaurants, cafés and shopping facilities during a break or after work,” comments Valter Kalaus, managing partner of Newark VLK Hungary.
The current, limited speculative Budapest office pipeline is expected to result in a low supply of quality, well-located, contiguous offices that meet ESG expectations and regulations and satisfy tenant demands, despite rising overall vacancy rates.
Total Budapest office stock stands at around 4.42 million sqm according to the Budapest Research Forum, which comprises CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary. Around 3.6 million sqm of this was developed on a speculative basis. Budapest remains the second-largest CEE office market after Warsaw.
“I believe selective new developments will do well in prime, well-connected areas where transit options are strong. There is definitely a clear flight to quality happening: businesses want efficient workplaces that deliver transparent ESG performance,” comments Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska.
“At the same time, redevelopment and deep retrofits are gaining traction as owners look to improve energy performance and user experience to keep their assets valuable for the long haul. For new projects, the winning approach is all about choosing great locations and designing adaptable spaces,” she says.
“This has to be backed by responsibly sourced materials and measurable results. We’re seeing positive momentum on the ground: our projects are moving forward with strong tenant interest, which really shows how the market is shifting towards quality, sustainable workplaces,” Luca notes.
Skanska and GTC are among the few developers to have undertaken recent substantial speculative office development projects.
“As financing costs stabilize and more occupiers consolidate into efficient, sustainable workplaces with lower operating costs and strong digital connectivity, we expect selective new starts in prime, transit-served submarkets,” Luca says.
“The shift we see is not about volume but about purpose. The next wave of office development will be driven by clear demand for spaces that combine efficiency, sustainability, and human experience, buildings that genuinely support productivity and well-being,” she adds.
Across the modern Budapest office market, the design, development, and property management of offices aligned with sustainability and ESG requirements are now a basic requirement. This could cause a major problem for some organizations as several office complexes in the market will be unable to meet ESG requirements.
This article was first published in the Budapest Business Journal print issue of November 14, 2025.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
