The industrial real estate market in Hungary hit the vacancy rate of 5.5% in the first half of 2017, which is the lowest number on record since it has been measured by the Budapest Research Forum (BRF). In total, less than 73,000 sqm space is currently vacant in the Budapest metropolitan area of the 1.95 million sqm total modern logistics area, and only four Class A buildings can offer more than 5,000 sqm contiguous warehouse space. The lack of available space is due to the strong absorption of the last few years, and at the same time there are still limited number of speculative projects in progress or have building permits, says Tamás Beck, Director of Industrial Agency at Colliers International Hungary.
Construction activity showed significant increase in H2 2016 and H1 2017 as five new projects – 50,000 sqm in total – were handed over so far and an additional 50,000+ sqm (Inpark Páty, East Gate Business Park and Budapest Dock Szabadkikötő) is expected to be handed over until the end of the year. These speculative buildings are typically pre-leased by the end of the construction, thus they do not appear in the supply as vacant spaces.
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