Budapest: Annual take-up breaks the record

In 2011 the annual take-up broke the record: leasing agreements were signed for 397,333 sq m. This value is much higher than the yearly average 300,000 sq m of the past years. Due to the outstanding leasing activity vacancy rate has fallen under 20 % for the first time for two years, it stood at 19.2 % at the end of 2011. 

The volume of new supply fell to 50 % compared to 2010: whilst in 2010 the supply increased by 172,564 sq m, in 2011 87,425 sq m were delivered to the market, out of which 50,884 sq m are the towers in Millenium Offices built for K& H. 65 % of the remaining office space have already been leased. In Q4 2011 two large size, larger than 15,000 sq m, transactions were concluded in office buildings built after 2008. Since the volume of new supply will decrease and even lower values can be expected in 2012-13 the tendency that large joint spaces are running out seems to intensify. There are locations where in case of requirements above 5,000 sq m no suitable office buildings can be found, and requirements for smaller joint spaces are not sure to be fulfilled either. In case of requirements above 5,000 sq m only two buildings handed over after 2008 can be found in Central Buda, only one building can meet this demand in South Buda, whilst also only one building is suitable in Central Business District.