The office in 2026 is seen as functioning primarily as a collaboration and engagement hub, rather than a default place for individual work. It is designed to support team interaction, company culture, innovation, and client-facing activities, while more focused work is often done remotely. As a result, the office has become a strategic tool for talent retention and productivity rather than just a physical workspace.

“Hybrid work has reduced average occupancy but increased the importance of the peak-time experience. This drives demand for flexible layouts, shared desks, and multipurpose collaboration areas. Developers and property managers are increasingly using data analytics to optimize space utilization, energy consumption, and tenant experience, while also focusing more on service-oriented management,” comments Kalaus. 

Budapest, and, indeed, the wider CEE region, is being shaped by strong office demand from international SSCs and BPOs, which prioritize cost efficiency alongside quality. While ESG expectations are rising due to more international occupiers, the market remains price-sensitive. Infrastructure is improving, but differences between submarkets remain more pronounced than in Western European capitals.

Kalaus argues that a successful asset must combine certified energy efficiency (for example, via BREEAM or LEED) with tangible user benefits such as high indoor air quality, natural light, and wellness-oriented design. Amenities like bike storage, showers, EV charging, green outdoor spaces, and smart building systems are increasingly standard, alongside strong digital connectivity and tenant-focused services.

Further, location remains critical, with an emphasis on excellent public transport connectivity, especially subway and tram access. Proximity to a skilled workforce, and to nearby retail, food, and lifestyle services, is essential. Increasingly, locations that support a “live-work-play” environment are preferred, especially in attracting younger talent.

Human-centric Design

“Contemporary offices in Budapest reflect global trends, with a focus on biophilic elements, natural materials, and hospitality-inspired interiors. Spaces are more informal, flexible, and brand-driven, blending work, social, and relaxation areas. There is also a clear shift toward human-centric design prioritizing comfort and wellbeing,” says Kalaus.  

From a tenant perspective, the focus is on efficiency, flexibility, and ESG alignment, ensuring the space supports changing headcounts and hybrid work. From the occupier (employee) perspective, expectations center around comfort, acoustic quality, access to collaborative and quiet zones, and seamless digital infrastructure that supports both in-office and remote work. Kalaus says that only a relatively small proportion of Budapest’s office stock, mainly newer Class “A” developments, fully meets these expectations.

“A large share of older buildings lack ESG credentials, modern layouts, and the level of amenities now required by international tenants. Upgrading is likely, but only for well-located assets where the business case supports significant capital expenditure. In many cases, owners will face a ‘refurbish or reposition’ decision, while less competitive buildings risk obsolescence or conversion to alternative uses,” the real estate expert says.

Finding high-quality, ESG-compliant space is seen as becoming increasingly challenging, particularly for larger tenants requiring contiguous areas. While supply is improving, demand from international occupiers continues to outpace availability in the best locations.

“Budapest can strengthen its position by further improving transport infrastructure, increasing the pipeline of ESG-compliant developments, and enhancing regulatory predictability. Positioning itself as a regional innovation hub and investing in talent development would also significantly increase its competitiveness,” Kalaus concludes regarding the wider environment in Budapest.

This article was first published in the Budapest Business Journal print issue of March 27, 2026.