Budapest's office market recorded a notable decrease in its vacancy rate during Q2 2025, reaching 12.8%. This marks a 1.29 percentage point drop from the previous quarter and a 1.18 percentage point decrease year-on-year, according to the Budapest Research Forum (BRF). Net absorption also turned positive, reaching 57,000 sqm.
Total demand for office space amounted to 119,975 sqm in Q2 2025, representing a 16% year-on-year decrease. Renewals were a dominant factor, making up 39% of the total demand, closely followed by new leases at 40%. Expansions were minimal at 2%, while owner-occupier deals constituted 19%.
No pre-lease agreements were recorded during this period. Net take-up, excluding renewals and owner-occupied transactions, reached 49,955 sqm, a 21% decrease compared to Q2 2024.
The total modern office stock remained stable at 4.42 million sqm, with no new office space delivered to the market in Q2 2025. Within this, speculative office space accounts for 3.54 million sqm and owner-occupied space stands at 877,235 sqm. A significant 22,935 sqm of speculative office space was transferred to owner-occupied stock during Q2.
The Váci Corridor submarket demonstrated the strongest occupational activity, attracting 37% of the total demand, while South Buda followed with 22%. Central Buda recorded the lowest vacancy rate at 7.4%, conversely, the Periphery submarket saw the highest at 19.4%.
A total of 136 lease agreements were concluded, with an average deal size of 882 sqm. The largest speculative transaction was a 13,800 sqm lease renewal in the Váci Corridor, which also saw the largest new lease signed for 12,500 sqm.
