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.

MNB Issues Instructions to Prevent Online Personal Loan Frau... Banking

MNB Issues Instructions to Prevent Online Personal Loan Frau...

Hungary Solar Capacity Climbs Over 6,700 MW Government

Hungary Solar Capacity Climbs Over 6,700 MW

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Visitor Numbers, Guest Nights Climb in H1 Tourism

Visitor Numbers, Guest Nights Climb in H1


Producing journalism that is worthy of the name is a costly business. For 27 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.