Leasing activity in the Budapest office market remained strong with more than 253,000 sqm of office space leased in the first half of 2018. In total, commercial real estate agencies were involved in 173,000 sqm of office leasing transactions, from which CBRE completed the largest amount of transactions, 42,245 sqm equating to 24.4% market share in the agents market.
Following the strong first quarter, the second quarter of 2018 saw an even higher level of demand for office space in Budapest, equating to an increase of 64% compared to the same time frame of 2017. Q2 2018 also saw the year’s largest pre-lease agreement since 2015, with Evosoft signing for its new headquarters in the Univerzum Office Building located in the popular South Buda submarket.
The average asking rent level continued to increase in Budapest and by the end of Q2 2018 this equated to €11.84/sqm/month, this reflects a 5% higher level than for the same time in 2017.
Another boost to Budapest’s office market is the expansion of developments as there is 461,800 sqm office space under construction, of which 168,200 sqm is still expected to get handed over this year.
Judit Varga MRICS Head of Office – Advisory & Transactions, stated: “2018 is continuing the strong level of demand left off in 2017, and we expect the year to transact a high level of office space in Budapest. The new committed supply will go some way to alleviate the pressures of low vacancy for high quality office space, and if the Hungarian economy continues to perform as it is now, we expect a very strong 2018.”
