The total modern office stock currently adds up to 4,426,050 sqm, consisting of 3,571,750 sqm of ‘A’ and ‘B’ category speculative office space as well as 854,300 sqm of owner-occupied office space. In the first quarter of 2025, the modern office stock was expanded by 5,060 sqm of office space. Rhodium Office Building was handed over on the Váci Corridor, and Wagner Palace in Central Business District submarket.
In the first quarter, six buildings – with the total size of 28,270 sqm – were excluded from the office stock due to their change of utilization. Additionally, two office buildings with a total size of 7,695 sqm were transferred to the owner-occupied office stock. As a result of the annual size revision, the office market stock decreased by 5,945 sqm.
Total demand amounted to 92,965 sqm in Q1 2025, reflecting a 2% decrease year-on-year. Renewals took up 45% of the total demand. New leases accounted for nearly half of the total leasing activity,
comprising 48%, while expansions took up 7%, and no pre-lease agreements were registered in Q1 2025.
Net take-up (excl. renewals and owner-occupied transactions) reached 50,970 sqm in the examined period, indicating a 21% increase compared to the first quarter of 2024.
In Q1 2025, the office vacancy rate showed 14,1%, therefore it remained almost the same than in the previous quarter, as it represented a decrease of 0.07 pps quarter-on-quarter, and an increase of 0.31 pps year-on- year. The lowest vacancy was registered in Central Buda with a vacancy rate of 7.8%, whereas the highest vacancy rate remained in the Periphery submarket (27.1%).
Net absorption (corrected with the size changes) turned negative and amounted to -11,475 sqm.
The strongest occupational activity was recorded on the Central Pest submarket, attracting 27% of the total demand, and it was followed by Váci corridor submarket, which took up 21% of the total demand in Q1 2025.
According to BRF, 138 lease agreements were concluded in Q1 2025 and the average deal size amounted to 669 sqm. The largest transaction of the quarter was a lease renewal, for more than 6,000 sqm on the Central Pest submarket, while the largest new transaction was signed for an area of 4,000 sqm in North Buda.
The Budapest Research Forum, as a result of nearly two years of comprehensive review, examined 335 office buildings in Budapest based on various criteria, including technical specifications, services, energy characteristics, and location. As a result of the analysis, 42% of the properties were classified as category 'A', while 58% were classified into category 'B'.
BRF
