C&W retains market-leading position in Hungary in 2016
Real estate services firm Cushman & Wakefield retained its market-leading position for the fifth consecutive year in 2016 on the Hungarian market, being involved in approximately 83,500 square meters of office lease transactions, or a 32% share of the agents market, according to a press statement sent to the Budapest Business Journal today.
C&W concluded a total of 92 transactions with an average deal size above 907 square meters, further cementing its market-leading position in the country.
“It is a great accomplishment for C&W to retain this position for five years, and a real testament to the team for all their hard work throughout the year – which was nothing short of exemplary,” said David M. Johnston, Partner and Head of Office Agency at C&W Hungary. “No agency team can enjoy this sort of repeat success without strong client relationships, with whom we enjoy working and greatly appreciate, and would like to thank them for placing their trust in C&W regarding their mandates in Hungary.”
“I remain confident that 2017 will prove to be another strong year for offices in Budapest and we are excited about many of the mandates which will come to fruition during this time,” Johnston added. “Despite there being an increase in committed new stock, due to be delivered to the market in 2018 and 2019, I expect 2017 to continue as 2016 left off and be another busy year, with several large occupiers on the market looking for long-term office solutions within Budapest. Whether it can exceed 2016’s take-up of 470,000 sqm remains to be seen, but it is clear that Budapest is now a 400,000 sqm+ market,” he concluded.
“The Budapest office market continues to be landlord-favorable. In Q4 2016, occupier demand peaked with almost 164,000 sqm of office leasing transactions closed in Budapest, producing the highest quarterly volumes in 2016,” said Orsolya Hegedűs, Associate and Head of Research at C&W Budapest. “This strong last quarter pushed the yearly take-up volume to 470,000 sqm, which represents the second highest figure on record. The vacancy rate decreased further, and at yearʼs end stands at a record low of 9.5% of the total office stock in Budapest. Given the surge in occupier activity, and a lack of new stock being released to the market, headline rents enjoyed some growth, and incentive packages further shortened,” she added.
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