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Newly leased area exceeds expansion on Budapest office space market last year

The total area of modern office space grew 145,000 sqm in Budapest in 2010, while new lease contracts were concluded for 165,000 sqm, which shows that the market has begun absorbing vacant areas, improving occupancy, the Real Estate Research Association (RERA) told MTI.

Last year, contracts were signed for a combined 281,000sqm of office space in Budapest.

With 6,280sqm of new office space completed in Q4 2010, the total area of category “A” office space grew to 2.34 million sqm in Budapest. Contracts concluded in this period were for new area of 111,000sqm, including new contracts for 66,000sqm. The remainder were extensions of existing contracts.

Increased turnover reduced the vacancy rate by 1 percentage point in Q4 from Q3. The 25.72% vacancy rate of the last quarter is the same as the annual rate. Before the crisis, vacancy was half this level, that is to say around 12-13sqm of every 100sqm of office space was vacant. (MTI Econews)