Warehouse space scarce despite developments
Available warehouse space is continuously shrinking in Hungary, despite significant developer activity last year, which saw ten projects add some 120,000 square meters of new industrial and logistics space to the market, 50% more than the preceding year, according to business daily Világgazdaság.
Warehouse spaces of more than a couple of thousand square meters could run out by the end of this year in the vicinity of Budapest, Tamás Beck, director of the industrial real estate unit of property consultants Colliers International, told Világgazdaság.
Warehouse spaces are still being constructed - with total modern logistics space in Hungary now exceeding 2 million sqm, and another 130,000 sqm expected to be completed this year. However, the stock of available space to rent remains limited, as most warehouse facilities now being built or to be begun this year are already pre-booked or built-to-suit, the report indicates.
Although the growth in the stock of industrial real estate began two years ago, it has not been able to keep pace with increasing demand. The vacation rate is already very low, at 4% in the Budapest area, and could shrink to practically zero by the end of the year, according to Colliers data.
Some two-thirds of leasable properties are in the hands of the five biggest investors and developers, notes Világgazdaság. On a strongly concentrated market, it adds, most of the demand comes from companies in the automotive, electronics and logistics sectors.
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