Office space market exceed two million square meters in Budapest
Property investors built 150,000 square meter off modern office space in Budapest in the H1 of 2006, bringing the total space on the market to a little more than 2 million square meters, according to a survey of the market by real estate company Jones Lang LaSalle. Investors plan to complete 200,000 square meters of modern office space in 2007 and 300,000 square meters in 2008, showing the market is picking up. Rental fees in the capital average €10.5-€15 per square meter per month, with the rents in the most exclusive properties going for €18.5. The cost of monthly utilities adds €3-€4.5 per square meter per month to costs. Vacancy on Budapest's market for modern office space is 11.1%, the fifth-lowest level among European capitals.
Ahead of Hungary is Warsaw, London, Paris and Moscow. Property investors enjoy annual yields of 6% on office space in central and eastern Europe, compared to 4.8% in western Europe. Yields for retail space are 5.75% in the CEE region and 5.3% in western Europe. Yields on industrial properties are 7% in the CEE region and 6.7% in western Europe. 73,000 square meters of warehouse space was built in Budapest in H1 2006. Another 96,000 square meters is under construction. Total warehouse space in the capital and its suburbs comes to 1.124 million square meters. Modern warehouse space rents for €4-€6 per square meter per month. Vacancy is 8.4%. (Mti-Eco)
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