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Budapest office market set to expand 350,000 sqm in 2009; vacancy seen rising over 15%

Budapest's A-category office space market is expected to expand by more than 350,000 square meters to 2.8 million square meters by year-end, but low demand is seen causing the vacancy rate to rise over 15%, Thierry Delvaux, who heads the Budapest office of real estate consultancy Jones Lang LaSalle, said at a press conference in Budapest on Tuesday.

The vacancy rate on the capital's top-category office space market rose from 13.7% at the start of 2009 to 14.9% by the end of the first half, Delvaux said. Average rents per square meter per month have fallen from €10.5-€15 last year to €10-€14.5 in the third quarter of 2009, he added.

Delvaux expects the activity of developers to slow considerably next year, with the first office buildings to be completed in the last quarter of 2011 or rather at the beginning of 2012 following the current wave of developments. Many of this year's buildings were built with no leasing contract in place. (MTI-Econews)