Demand continues to be strong on the Budapest office market and with new supply still limited the vacancy rate decreased further in Q1 2017. It now stands at 9.2% which is the lowest rate on record. The Budapest Research Forum published its newest figures.
The vacancy rate has continued to decrease by 0.3 pps quarter-on-quarter to 9.2%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded in the South Buda submarket (3.6%), whilst the Periphery submarket registered again the highest figure (34.0%).
The share of the net take up compared to renewals continued to increase. In the first quarter new deals were the major driver of the leasing activity with 53.3% share while the second largest share (18.3%) was represented by expansions. Renewals accounted for 18.2% and pre-leases showed a lower share compared to previous periods with 10.3%. There was no owner occupation registered during the period.
The largest deal of the quarter was a new agreement in the Váci Greens B office building for more than 5,000 sqm. This was followed by Bayer’s renewal in Alkotás Point for 3,354 sqm. The largest pre-lease was signed by SAP in Graphisoft Park, extending to over 3,300 sqm.
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