The Budapest office market vacancy rate has decreased to 8.6% in Q2 2017, which is the lowest rate ever on record. Renewals were the major driver of the leasing activity while no new buildings were completed in the quarter. The Budapest Research Forum published its newest figures.
The vacancy rate has continued to decrease by 0.6 pps quarter-on-quarter to 8.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.1%), whilst the Periphery submarket registered again the highest figure (33.1%).
Demand in Q2 2017 increased by 47% compared to the previous quarter, reaching 98,730 sqm. Renewals were the major driver of the leasing activity with 38.5% share. In the second quarter of 2017 new lease agreements were represented by 32.9%, expansions accounted to 9.9%. Pre-leases showed a higher share compared to previous periods with 18.8%. There was no owner occupation registered during the period.
The largest deal of the quarter was a renewal in Infopark D office building for more than 7,000 sqm. This was followed by a renewal in Átrium Park for 6,710 sqm. The largest pre-lease was signed in Office Garden III, extending to over 4,630 sqm.