ARTICLES LABELLED WITH TAG Budapest

The Budapest office market is booming and as the needs of tenants are changing, developers need to pay attention not only to sustainability but to employee well-being as well. Panelists at Portfolio’s FM & Office 2017 conference in Budapest talked about the future of the office market in the capital.

Eight months after earthworks began and the foundation stone was laid, all the floors of the first airport hotel in Hungary with direct terminal access have been constructed, and the highest point of the structure has been reached. During the traditional topping-out ceremony, the managers of developer Wing Zrt. and Budapest Airport announced that the hotel is due to receive the first guests at the end of this year, as planned.

CTP continued its expansion on the Hungarian market through the acquisition of Rozália Park, a 57,800 sqm logistics scheme directly adjacent the M1 motorway to the west of Budapest. The seller was Challenger. 

Reconstruction works on the former HQ of the Budapest Stock Exchange and the Hungarian Television are planned to start at the beginning of 2018 with a budget of €38 million. The 100-year-old building will be reborn as Exchange Palace, an office building with approximately 31,700 sqm of GLA:

Fenced-off construction sites, scaffold-enfolded buildings and grandiose developments – often only in plans – have become characteristic of the Budapest property market. Just four years after the deepest point of the recession, there is hardly any indication of those hard times left. The upwards trend exists not only on the residential market, but also on the office market, which impacts the majority of companies and employees. The largest investors adapted to the renewed demand and began building massive numbers of office buildings, and entire new areas of the city are being born.

After acquiring the Campona and Pólus shopping centres in Budapest, CPI Property Group has again entrusted CBRE to manage its new properties. CBRE has also been selected as the exclusive leasing agency for the two malls.

According to CBRE, it is very likely that business deals in the Hungarian investment property market in 2017 will reach last year’s €1.54 billion (HUF480 billion) turnover.

M7 Real Estate has acquired a further circa. €20 million of assets in Budapest, on behalf of its first Central European fund for third party investors, M7 CEREF I. This follows the Fund completing its final close, reaching its target raise of €60 million of investor capital in April 2017, as well as the agreement of a €68.5 million senior debt facility with Starwood European Real Estate Finance.  

Futureal has sold its Sziget Center shopping mall in Hungary to OTP Property Investment Fund as part of the deal that also saw the purchase of the Skypark office building. After a successful repositioning, the 23,600 sqm center located on the outskirts of Budapest has managed to lure high-profile tenants and tripled its lease income over the last two and a half years.

The Váci Road office corridor, the central business district (CBD) and the inner quarters of Pest are the most significant office locations in Budapest. The Budapest office of CBRE has synchronized its office market database with the metro lines and stations to highlight the current status of the city’s office market.