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Commercial property boom set to continue

According to property adviser DTZ, the upswing on Hungary’s commercial real estate market is set to continue in H2, mostly through newly constructed shopping malls and retail parks.

Retail space supply rose 70,000 square meters (sqm) in H1, especially in provincial areas. By the end of 2009, 280,000 sqm of new retail buildings will be constructed in Budapest and in the neighboring area, while 450,000 sqm will be inaugurated in rural areas. The highest monthly rents of €90–120 per sqm are charged for the ground floor-retail spaces in Váci Street, while in Andrássy Street retailers may rent shops for €60-100 per sqm.

In the most frequented shopping malls, like Aréna, Westend, monthly rental fees per sqm amount to €80-100. In Mammut and Árkád, however, tenants pay €40-65. Retail spaces in the countryside cost €30-40, while in retail parks it is only €9-14. Currently, Hungary has 1.5 million sqm of retail properties, according to DTZ’s figures. The company also projects that by 2010, each town with a population above 60,000 will host a shopping mall or a retail park. (Gazdasági Rádió)