The total modern office stock currently adds up to 4,463,695 sqm, consisting of 3,617,885 sqm of ‘A’ and ‘B’ category speculative office space as well as 845,810 sqm of owner-occupied office space.
In the second quarter of 2024, two office buildings were delivered to the Budapest office market with a total of 23,205 sqm. The new, owner-occupied headquarters of Bohn (1,500 sqm) was handed over, additionally Liberty North (19,780 sqm), Enter City Office Park I (1,925 sqm) office schemes were completed. Moreover, one building was transferred to the owner-occupied office stock.
Total demand reached 93,150 sqm in Q3 2024 reflecting a 30% decrease year-on-year.
Renewals accounted for the largest share of total leasing activity with 51%, followed by new leases with a share of 40%. Expansions took up 8%, while owner-occupied deals took up 2% of the total demand. Pre-lease contract was not registered in the quarter.
In the first tree quarter of 2024, total demand amounted to 331,520 sqm, showing a 1% increase compared to the same period a year prior. Net take-up (excl. renewals and owner-occupied transactions) reached 150,280 sqm in the first three quarter of the year, indicating a 12% decrease compared to the same period of 2023.
In Q3 2024, the office vacancy rate increased slightly to 14%, representing a 0.08 pps growth quarter-on-quarter and 1.05 pps increase year-on-year. The lowest vacancy was registered in Central Buda with a vacancy rate of 7.3%, whereas the highest vacancy rate remained in the Periphery submarket (31.9%).
Net absorption turned positive in the third quarter of 2024 and amounted to 16,305 sqm.
The strongest occupational activity was recorded on the Central Pest submarket, attracting 31% of the total demand, and it was followed by Váci Corridor submarket, which took up 26% of total demand in Q3 2024.
According to BRF, 147 lease agreements were concluded in Q3 2024 and the average deal size amounted to 634 sqm. The number of transactions remained in the same range compared to the third quarter of 2023, however the average transaction size has reduced by 27%.
BRF registered two transactions concluded on more than 5,000 sqm office space, which were all renewals. In conclusion the largest transaction in the quarter was a renewal, in total of nearly 12,000 sqm in Corvin 4 office building. The largest new transaction of the quarter was concluded by KÉSZ Metaltech in KÉSZ Mester Udvarház for nearly 2.000 sqm.
BRF
