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More than half of office space inaugurated in Budapest in H1 stands vacant

More than half of the new office and industrial space inaugurated in Budapest in the first half of 2009 stands vacant, Adorján Salamon, who heads real estate consultancy Eston International, said at a press conference on Monday.

About 47,200 square meters of the 86,800 square meters of office space completed in Budapest in H1 stands vacant, and no leases have been signed for about 70,000 square meters of the 126,00 square meters of industrial space inaugurated in the period.

Take-up on the new office space market has been hit hard by the drastic fall in rents at older buildings, tight lending conditions and the weak forint. Rents for modern 'A'-category office space have slipped to €17 per square meter per month from €22 a year ago.

In the second half of the year, some 171,000 square meters of new office space is expected to come onto the market. About 138,900 square meters of the amount is expected to stand vacant for one or two years.

Some 161,800 square meters of office will probably be inaugurated for the full year in 2010 and 140,200 square meters of the space is seen standing empty. (MTI-Econews)