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BRF: Hungarian real estate market demand up 30% in Q1

Office Market

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Demand in the Hungarian real estate market grew by 30% in the first quarter of the year as compared to the five-year average of first quarter’ lettings, reaching 84,410 sqm, or half of the record level registered in the last quarter of 2015, the Budapest Research Forum (BRF) said today in a market analysis.

Some 212 lease agreements were signed in the first quarter with an average deal size of 398 sqm, the forum said. The largest deal of the quarter was the GE expansion in the new Váci Greens B office building, followed by MSD’s renewal in the Millenium Towers III for 2,498 sqm. According to the report, the largest new transaction was in Átrium Park, extending to over 1,800 sqm. 

The share of renewals and new deals shifted in the first quarter, and new deals were the major driver of market demand with 47% market share, BRF said. Renewals accounted for 34%. Only 18% of the total leasing activity was expansion based. No owner-occupied transaction was registered in the quarter. 

The handover of Váci Greens B has further increased the modern office stock by 25,600 sqm, which now extends to 3,295,150 sqm, BRF said. The total modern office stock comprises 2,630,570 sqm of Category ‘A’ and ‘B’ speculative, and 664,580 sqm of owner occupied buildings, the report added. 

As a result of the annual stock revision of the forum, four buildings were excluded from the modern stock because they no longer meet the Category ‘A’ or ‘B’ standards, and a further 46 buildings GLA’s were amended due to re-measurements having taken place over the course of 2015, the report said. 

The Budapest Research Forum comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. 

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