During the third quarter, three new office buildings were completed with a total area of 39,570 sqm – reports JLL in their latest Budapest Office Market Pulse. The increasing development activity has had an effect on the vacancy rate as well: the Budapest office market’s vacancy rate made a slight increase to 10.9% as a result of the vacant space in the newly completed buildings and in the buildings from where the tenants moved out.

CTP continues expanding in Central Europe, with the recent acquisition of Westlog DC (Distribution Centre) 10 km from Budapest’s city centre. The park is situated west of the city, directly on the M1 motorway, near the junction of the main north-south M7 and the M0 ringroad.

2016 brought about yet another turnaround on the Hungarian commercial property market. Real estate professionals from the country and all over CEE came together in Budapest at Property Investment Forum 2016, organised by Portfolio. The biggest and most important event of the Hungarian real estate market was held for the 12th time this year, attracting over 700 visitors and nearly 100 speakers.

As of November 1 2016, Cushman & Wakefield has been appointed to undertake property management and leasing services at Mammut Shopping and Entertainment Centre in Budapest. The over 104 000 sqm, Mammut Shopping and Entertainment Centre,comprising two phases, is the largest shopping centre in Buda, with over 350 units and parking premises. The first phase, Mammut I. was handed over in 1998, the second phase, Mammut II. was delivered in 2001. 

Prologis has signed a new lease agreement for 13,800 square metres and will deliver two new facilities totalling 21,000 square metres at Prologis Park Budapest-Sziget for Waberer’s. The transactions with new customer Waberer’s include 13,800 square metres at DC7A, a 21,500 square metre speculative facility that is now fully let two months after completion and 21,000 square metres at DC7B and DC8 to be developed to the customer’s specifications and scheduled for completion in the second quarter of 2017. 

GLL acquired the multi-purpose heritage building that combines retail-, office- and service functions on 13,750 sqm at Vörösmarty Square in downtown Budapest. The seller of the recently completed UNESCO World Heritage listed premium asset is Hungarian developer Horizon Development.  The property has been added to the portfolio of Bayerische Versorgungskammer and will be managed by Munich-based real estate fund manager group GLL Real Estate Partners.

Celanese Hungary Ltd. is setting up its new 4,200 sqm headquarters in Promenade Gardens as of April 2018. The decision was made prior to the foundation stone being laid for the new office building on inner Váci út. The regional financial and logistics business service center of the international company found its new home on the 1st and 2nd floors of the modern, 4-tower building (in cores B, C and D).

The foundation stone for the new Magyar Telekom Headquarters has been laid in Budapest on 15 November. The 58,000 sqm office building is expected to be completed in the second half of 2015 and will be leased by Magyar Telekom for at least 15 years. Upon completion it will become the largest single-block office building in Hungary.

General optimism, attractive investment opportunities and more capital characterises the Central and Eastern European property market that is now considered a favourable investment destination by international investors. The second Emerging Europe Property Forum, co-organised by Portfolio Property Forum and RICS, took place on 8 November at the RICS HQ in London. 

In the middle of August, the whole world was once again in Olympic fever, as Rio hosted the 31st Summer Olympic Games. The event bears significance for Hungary, beyond the achievements of its athletes, because Budapest is one of the cities which has applied to host the 2024 Summer Olympics.