Panattoni is kicking off its first investments in Hungary. On the plot purchased in Herceghalom, 30 km from the centre of Budapest, Panattoni Park Budapest West will be built with a total space of 75,500 sqm. The developer has also acquired land for City Logistics Budapest I in Törökbálint, halfway between Herceghalom and the Hungarian capital. Both investments will encompass jointly up to 100,000 sqm.
Panattoni Park Budapest West will be built in Herceghalom, next to Hungary's main transport route, the M1, just 30 km from Budapest's city centre. Ultimately, it will consist of three modern buildings with a total area of 75,500 sqm. Construction of the first building – with an area of 28,000 sqm – will start within months and will be completed by the end of 2022. Tenants from various industries – logistics, transport, shipping, as well as light industrial production – are welcome to reserve space in those high-quality buildings.
City Logistics Budapest I - on the plot in Törökbálint, Panattoni will develop a logistics centre comprising four modern buildings with a total area of 20,000 square metres. The centre of Budapest is only 12 km away, which makes the investment very attractive for city logistics operators (modules will be available from 1,000 sqm). This park will also complete by the end of next year.
Budapest and the surrounding area is Hungary's main logistics and distribution hub. It has more than 3 million inhabitants and the supply of warehouse and industrial space exceeds 2.5 million sqm.
“The market is growing dynamically with high demand and limited supply of modern space. At the end of the third quarter of this year, the vacancy rate was only 3.5 percent. Over 250,000 sqm of space was under construction, half of which has already been pre-leased. The Hungarian market has excellent prospects. It is less developed than the markets of nearby countries. The logistics stock in the country is currently 250 sqm per 1,000 inhabitants, compared to 550 in Poland, 900 in the Czech Republic and 920 in Germany,” says László Kemenes, Head of Panattoni's Hungarian subsidiary.
Although significant new supply will be delivered to the Hungarian market next year - he assures - that the success will be achieved mainly by those strategically located and built to the highest standards of sustainability. Both investments will be certified under the BREEAM system.
