The total modern office stock currently adds up to 4,455,615 sqm, consisting of 3,604,010 sqm of ‘A’ and ‘B’ category speculative office space as well as 851,605 sqm of owner-occupied office space. In the fourth quarter of 2024, the modern office stock was expanded with one office scheme with the size of 2,150 sqm, Liget Center Vitrum was completed on Central Pest submarket.
Moreover, in the fourth quarter one building with the size of 10,230 sqm was excluded from office stock due to its change of utilization. Additionally, an office building with a total size of 5,795 sqm was transferred to the owner-occupied office stock.
Total demand amounted to 170,630 sqm in Q4 2024 reflecting a 30% increase year-on-year.
Renewals reached an exceptionally high share from the total leasing activity, taking up 76% in Q4 2024. New leases accounted for 18% of the total leasing. Expansions took up 4%, while pre-leases reached a share of 2% from the total leasing activity in Q4 2024.
In 2024, total demand amounted to 502,150 sqm, showing an 8% increase compared to 2023. Net take-up (excl. renewals and owner-occupied transactions) reached 190,730 sqm in 2024, indicating a 20% decrease compared to the annual results of 2023.
In Q4 2024, the office vacancy rate increased slightly to 14.1%, representing a 0.1 pps growth quarter-on-quarter and 0.8 pps increase year-on-year. The lowest vacancy was registered in Central Buda with a vacancy rate of 8%, whereas the highest vacancy rate remained in the Periphery submarket (28.6%).
Net absorption turned negative in the fourth quarter of 2024 and amounted to -2,880 sqm, however the annual net absorption is still positive and totalled 47,665 sqm.
The strongest occupational activity was recorded on the Váci corridor submarket, attracting 37% of the total demand, and it was followed by South Buda submarket, which took up 22% of the total demand in Q4 2024.
According to BRF, 143 lease agreements were concluded in Q4 2024 and the average deal size amounted to 1,195 sqm. The number of transactions remained in the same range compared to the fourth quarter of 2023, however the average transaction size has grown significantly due to large lease renewals concluded in the fourth quarter.
Four transactions were concluded on more than 10,000 sqm office space: Ericsson, SAP, and the Ministry of Agriculture signed their lease renewal in this quarter, additionally a lease renewal was closed for more than 10.000 sqm on Váci corridor submarket.
The largest new transaction of the quarter was concluded by Alteo in BudaPart Downtown for nearly 4.700 sqm.
BRF
