In Q1 2021, 40,750 sqm of new space was added to the Greater Budapest modern industrial stock, with the delivery of one new building in CTPark Budapest East scheme located in Üllő. The total modern industrial stock stood at 2,415,550 sqm at the quarter-end.

Total demand amounted to 81,820 sqm in Q1 2021, indicating some 3% increase on the volume measured in the corresponding period of the previous year. Take up excluding renewals added up to 44,590 sqm which marks a significant threefold increase over Q1 2020 volumes. Pre-leases dominated the demand with a share of 45%.  New relocation leases in the existing stock stood for 10% of total leasing activity, whilst the quarter saw no expansion transactions. Lease renewals accounted for a share of 45% from the quarterly demand.

16 leasing transactions were recorded in Q1 2021 with an average transaction size of 5,450 sqm. Three of them were signed for more than 10,000 sqm. 87% of the transaction volumes was recorded in logistics parks, with an average transaction size of 6,450 sqm. The remaining 13% was registered in city logistics parks, where the average transaction size was 2,710 sqm. 54% of the city logistics take-up were renewals, and the remaining 46% included pre-lease agreements.

The three largest deals during the quarter included a 22,000 sqm renewal in M5 Business Park in Gyál, a 15,970 sqm pre-lease agreement in CTPark Vecsés and another pre-lease agreement for 10,650 sqm in CTPark Budapest West in Biatorbágy.

The vacancy rate at the end of Q1 2021 stood at 2.6% showing a 0.5%-point increase q-o-q, and a 0.2%-point decrease y-o-y. At the end of the first quarter, a total of 61,620 sqm logistics area stood vacant, and there are only two existing schemes which have availability of more than 5,000 sqm.

Net absorption amounted to 27,020 sqm at the end of Q1 2021.

The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.