Budapest’s office market recorded a slight decrease in total demand during Q1 2025, while net take-up of space rose by almost a quarter, with vacancy rate in stable territory, according to data from the Budapest Research Forum (BRF).
The market saw an expansion of 5,060 sqm during Q1 2025, with the handover of the Rhodium Office Building on the Váci Corridor and the Wagner Palace in the Central Business District.
However, six buildings, totaling 28,270 sqm, were excluded from the office stock due to changes in utilization, and two office buildings with a total size of 7,695 sqm were transferred to owner-occupied status. Additionally, an annual size revision led to a further decrease of 5,945 sqm in the office market stock.
All in all, the office stock totals 4.32 million sqm. This comprises 3.57 million sqm of 'A' and 'B' category speculative office space and 854,300 sqm of owner-occupied office space.
Total demand reached 92,965 sqm in Q1 2025, a slight decrease of 2% year-on-year.
New leases made up 48% of this demand, while renewals accounted for 45%, and expansions took up 7%. Notably, there were no pre-lease agreements in Q1 2025.
The net take-up (excluding renewals and owner-occupied transactions) was 50,970 sqm, a 21% increase compared to Q1 2024.
The office vacancy rate remained relatively stable at 14.1%, showing only a marginal decrease of 0.07 percentage points quarter-on-quarter and a slight increase of 0.31 percentage points year-on-year.
Central Buda recorded the lowest vacancy rate at 7.8%, while the periphery submarket had the highest at 27.1%. Net absorption was negative at -11,475 sqm. Central Pest was the most active submarket, attracting 27% of total demand, followed by the Váci Corridor at 21%.
There were 138 lease agreements concluded in Q1 2025, with an average deal size of 669 sqm.
The largest transaction was a lease renewal for over 6,000 sqm in Central Pest, and the largest new transaction was for 4,000 sqm in North Buda.
