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Budapest commercial property rents unchanged in H1

Industrial

The typical rent for commercial properties in Budapest remained unchanged in most segments in the first half of 2018 from the second half of 2017, the National Bank of Hungary (MNB) and the Royal Institution of Chartered Surveyors (RICS) found in a bi-annual survey, MTI reports.

The typical rent for a top central business district (CBD) office building remained EUR 18 per square meter in the first half of 2018. For prime non-CBD office building it was unchanged at EUR 14.5 per sqm and the rent dropped EUR 0.5 from the previous quarter to EUR 12 per sqm for good quality non-central office buildings.  

The top five shopping malls had rents of EUR 40 per sqm, down from EUR 52.50 per sqm in H2 2017, and other mall-type retail parks went for EUR 18 per sqm, EUR 2 less.

Typical yields in the office and industry-logistics segment dropped by about 25 bps to 6% and 7.5%, respectively. Within the total, typical yields for top CBD office buildings and top shopping malls remained 6%.  

The majority of respondents expected to see growing demand for commercial property investment in the next six months, and 73% of them forecast growing demand for prime logistics centers.  

Market participants forecast rising occupier demand for every office category, for top five plazas and prime logistics centers. They expect little change in demand to rent retail park or storage facilities space.  

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