Skanska optimistic about Hungary after strong 2016

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Office developer Skanska Commercial Development Europe believes 2016 was one of its best in the past few years, according to its year-end results, and will put a special focus on Budapest in the coming period, according to a press statement sent to the Budapest Business Journal.

“In the last few years Budapest became an inspiring place for tenants and investors who are expanding their businesses or diversifying their real estate portfolios within the CEE region,” Skanska said. “It was the best year ever for our unit in Hungary – with an improving market and the impressive divestment of Nordic Light, as well as record leasing activity,” the firm added.

According to real estate services firm Colliers International, the level of construction activity resulted in approximately 100,000 square meters of new supply in Budapest in 2016, which represents an 89% increase compared with last year’s new supply. Tenants from the SSC/BPO and IT sectors have remained the main drivers of the office leasing market, with notable activity in Budapest. 

When it comes to the drivers for companies to change office buildings, the tendency is nowadays connected to employee engagement, floor planning and flexibility, according to Skanska. Retaining employees is becoming a challenge, it added, so having engaged, inspired and motivated people becomes essential in increasing revenues for businesses.

Marcin Łapiński, Managing Director Skanska Property Hungary & Romania, described 2016 as a very successful year for the company.

“We delivered and sold the Nordic Light project, which was awarded with several sustainability awards. Last year we also started the construction works for Mill Park, our new futureproof project in the 9th district of Budapest. Moreover, our leasing activity registered a record level in our business. We have a great and professional team that made all these happen, trusting and living by Skanska values. We are grateful to the real estate agents who significantly contributed to this success,” said Łapiński.

Skanska leased almost 170,000 sqm GLA of office space in ten CEE markets in 2016. This is the best ever leasing result for the office sector of any region in the Skanska Group, the firm said, adding that the success illustrates the CEEʼs strong position and the regionʼs attractiveness. 

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