Budapest office market vacancy reaches record low level
Demand continues to be strong on the Budapest office market and with new supply still limited the vacancy rate decreased further in Q1 2017. It now stands at 9.2% which is the lowest rate on record. The Budapest Research Forum published its newest figures.
The vacancy rate has continued to decrease by 0.3 pps quarter-on-quarter to 9.2%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded in the South Buda submarket (3.6%), whilst the Periphery submarket registered again the highest figure (34.0%).
The share of the net take up compared to renewals continued to increase. In the first quarter new deals were the major driver of the leasing activity with 53.3% share while the second largest share (18.3%) was represented by expansions. Renewals accounted for 18.2% and pre-leases showed a lower share compared to previous periods with 10.3%. There was no owner occupation registered during the period.
The largest deal of the quarter was a new agreement in the Váci Greens B office building for more than 5,000 sqm. This was followed by Bayer’s renewal in Alkotás Point for 3,354 sqm. The largest pre-lease was signed by SAP in Graphisoft Park, extending to over 3,300 sqm.
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