Budapest modern office stock at 4.093 mln sqm in Q2
Image by Pixabay
Budapest's total modern office stock added up to 4,093,250 sqm in Q2 2022, consisting of 3,398,770 sqm of "A" and "B" category speculative office space as well as 694,480 sqm of owner-occupied space, according to the Budapest Research Forum (BRF).
BRF, which comprises CBRE, Colliers, Cushman & Wakefield, ESTON International, JLL, and Robertson Hungary, notes that in Q2, two new office buildings were delivered to the Budapest office market with a total of 30,750 sqm, the new owner-occupied OTP HQ building with a size of 28,000 sqm and Paulay 52 with the size of 2,750 sqm.
The office vacancy rate increased to 9.9%, representing a 0.1 pp increase quarter-on-quarter and year-on-year. The lowest vacancy was registered in North Buda with a 4.4% vacancy rate, whereas the highest vacancy rate remained in the Periphery submarket (31.4%).
Net absorption has remained positive by the end of Q2 amounting to 33,720 sqm.
Total demand reached 108,020 sqm in Q2 2022, representing a 10.2% increase year-on-year. New leases stood for the largest share of total leasing activity with 32%, followed by lease renewals in the existing stock with 27%, expansions of existing premises reached 10%, pre-leases in new developments reached 4%, while the share of owner-occupied buildings was 26% of the total demand.
The strongest occupational activity was recorded in Váci Corridor submarket, attracting 44% of the total demand. Central Pest submarket reached second place with 14%, followed by the North Buda (13%) and Central Buda (10%) submarkets. South Buda registered a single digit share with 8% of the total demand.
144 lease agreements concluded un Q2
According to the BRF, 144 lease agreements were concluded in Q2 2022 and the average deal size amounted to 750 sqm. The BRF registered seven transactions concluded on more than 2,000 sqm office space, including two renewals, three new leases, one owner occupation, and one expansion.
The largest speculative transaction during the second quarter was a new lease for a total of 5,420 sqm in Haller Gardens, while the biggest lease renewal was signed for a total of 4,200 sqm in Szépvölgyi 22.
BRF notes that there was a handover of an owner-occupied building with a size of 28,000 sqm.
Compared to the previous quarter, the percentage of new handovers decreased in Q2, as a lot of handovers passed to Q3. Demand was strong, and the percentage of closed transactions increased by 26%.
As in the previous quarter, new leases were able to achieve a higher proportion of total demand than renewals, according to the forum's research.
Richter Shareholders Approve HUF 423/Share Dividend
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
