of office space coming to the market in 2011
Altogether five new office projects in Budapest are scheduled for completion in 2011, according to a report issued by property consultant ESTON International. The year is now calculated to bring 52,000 square meters (sqm) of new space to the market, marking a considerable drop from the 145,000 sqm registered in 2010. Looking at the pipeline, an even further narrowing is expected in 2012, when only 47,000 sqm will be handed over.
The latest projection shows a huge revision from the data published at the end of 2010, when an aggregate 127,997 sqm of new space was set to be delivered. The discrepancy comprises the 75,312 sqm of offices in Walker and Williams Investment Group’s giant TóPark venture in Törökbálint earlier scheduled for 2011 delivery. However, due to problems that led to the investments’ apparent suspension, plus doubts as to whether analysts should categorize it as an office that belongs to the greater Budapest area, meant that the latest market reports no longer include it.
During 2011, the Laurus, Officium and Pasaréti commercial office buildings will hold their inaugurations, along with the office section of the KÖKI shopping center. TriGránit is set to complete the H tower in its Millennium complex which it has already largely pre-leased to K&H Bank, which will relocate its full operations there. The bank has pre-purchased the other, K tower to be built adjacent.
In 2012, Skanska has plans to complete its Green House investments while the Atenor Group is also scheduled to open its Váci Greens venture the same year. Both are speculative office developments located in the popular Váci corridor area.
According to ESTON’s research, the majority of developers believe that it will only be worth their while to start new speculative office developments after 2012.
This article appeared in the BBJ's Office Market special report on April 22, 2011.