The year 2005 saw a steady growth on the Hungarian warehouse and logistics market compared to the more dynamic year 2004, according to a study released by real estate agency DTZ Hungary Kft. However, market players are positive about 2006 to deliver better figures, the study claims.On the supply side, modern stock of more than 770,000 square meters has been completed, of which 130,500 square meters was delivered in 2005. A further 63,000 square meters is currently under construction, with roughly 39,500 square meters to be potentially completed in the first quarter of 2006. Although supply again fell short of earlier forecasts, developers are eager to deliver space, just as the planned schemes alongside the new section of M0 show. Speculative phases, which made up the majority of the supply in 2005, were still delivered in the major parks. While the neighborhood of the new M0 motorway is subject to possible future developments, the countryside market will develop at a slower pace and only a few selected areas will see development, according to DTZ’s study. As for demand, take-up by the end of 2005 was 119,000 square meters, which surprised industry experts as the market saw only few large-scale transactions last year. Meanwhile, the vacancy rate decreased to 8.1%. Rental fees showed a slightly decreasing tendency, although are not expected to drop substantially even in the current fierce market situation. Typical rental levels were around €4.2 per square meter per month in the Budapest area in 2005. After the record volume transacted in 2004, last year was another successful year for investments. Two major industrial transactions took place: the purchase of Harbor Park by ProLogis Inc., and Teesland/IO Group’s acquisitions of Innovation Park in Szigetszentmiklós, south of Budapest and a secondary facility in Törökbálint, at the western boundaries of the capital.