Cushman & Wakefield retains market leading position in 2014 in Hungary
Cushman & Wakefield (C&W), the world’s largest privately-owned real estate services firm, retained its market leading position for the third consecutive year in 2014, the company announced today in a press release.
The company was also involved in a record amount of office lease transactions totaling approximately 83,000 sqm or a 32% share of the Agents Market. C&W concluded 78 transactions in all with an average deal size above 1,000 sqm.
“The Budapest office market continued the momentum it created in 2013 into 2014. Tenants committed to nearly 466,000 sqm of office space, reflecting a strong 17% gain on 2013 and the highest ever levels of take-up recorded. Such robust letting activity helped improve the vacancy rate to a pre-recession low of circa 16.2% at the end of December, this is bucking the trend when compared to the other CEE office markets and their vacancy rates. The C&W Office Team was involved in almost 20% of all lease transactions concluded in the market last year, which is an outstanding achievement bearing in mind more than 50% of the leases were off-market”, Orsolya Hegedűs MRICS, Head of Research at C&W Budapest said.
According to David M. Johnston MRICS, Head of Office Agency at C&W Budapest “The market is showing signs of a good recovery, both in terms of continued local demand and new market entries. Although we do not expect 2015 to repeat the record high take-up levels of 2014 – I suspect it will not be too far off. Supply for 2015 & 2016 has effectively ceased – with Váci Greens being the only scheme to deliver office space to the market this year (Buildings B & C) - and the office element of Building C is already 100% pre-leased (circa 16,000 sqm). There is now a clear Window of Opportunity for cash-rich Developers to take advantage of this lack of committed supply and to break ground and deliver new product in two years. In the meantime there is the option for savvy Landlords of existing Grade B / second generational buildings with high vacancy – to refurbish and re-position them on the market - and take advantage of the activity within the new market entries & SSCs sectors who can generally only wait 6 – 9 months to become fully operational after selecting to be located in Budapest.’’
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