The Hungarian developer Redwood Real Estate Holding (formerly known as B&L Estates), has started the construction of the speculative 5,000 sqm Ecodome office building, located in central Buda.
The development is a rare office project in the central Buda area where there is low availability of suitable development sites, despite high perceived demand. The central Buda office submarket has been struggling in recent years with no new stock delivered, commented Cushman & Wakefield, exclusive letting agents on the project.
The LEED “Platinum” pre-certified project will provide class “A+” office accommodation according to Redwood Real Estate Holding. Construction is being carried out by Swietelsky. Ecodome’s on-site services will include an in-house restaurant, roof-top terrace, bicycle parking and charging points for electronic vehicles.
“The state-of-the-art Ecodome office building combines modernity with a classic atmosphere. Our aim is to create an outstanding, super green landmark project in this sought-after location,” said Bálint Erdei, owner of Redwood Real Estate Holding.
“We are looking for companies who would like to be located in the central Buda area. It is important for them to be close to the downtown area but in a relaxing area. Ecodome could be the ideal HQ for law firms, consultants and also for financial service providers who could benefit from a ground floor customer care area,” commented Tamara Szántó, head of office agency at Cushman & Wakefield Hungary, letting agents on the project. Ecodome is due to be handed over in the second quarter of 2018.
Cushman & Wakefield sees a positive office market from the landlords’ perspective with 370,000 sqm of new supply expected to be delivered. For 2018 the consultancy has traced a pipeline of 14 office projects, for which the Váci corridor and central Pest are the dominant locations.
The largest pipeline projects in central Buda are the 16,000 sqm Buda Palota and the 22,000 sqm HillSide Offices. In another office project in central Buda, HB Reavis has purchased the classic Bem Palace and plans to redevelop the listed building into a 32,000 sqm office complex. The project located on the Buda bank of the Danube currently has an uncertain delivery date.
“Vacancy for the first quarter in the central Buda submarket was 4.9%, while in 2016 it was 5.7%. We anticipate a further decrease in the vacancy rate in the submarket,” concluded Szántó.