CRE Business
RoundUP
OFFICE Q4 2021
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Demand in 2021 Q4 reached 111,360 sq m.
Total 2021 demand equalled to 365,780 sq m. This represents a 9.3 % increase year-on-year.
TAKE up
Increased by 0.9% percentage points quarter-on-quarter, currently standing at 9.2% in Budapest.
Vacancy rate
No new schemes were delivered in Q4 2021, to the Budapest office market. In 2021, only 3 schemes were delivered in total.
TOTAL stock
3.96 million sq m
of the pipeline for 2022 is already pre-let.
56%
44,450 sq m of new supply was delivered in 2021.
NEW
supply
350,000 sq m of new supply is expected to be delivered by the end of 2022.
pipeline
Q4 was dominated by net take-up amounting to 57,080 sq m. Renewals amounted to 54,280 sq m. Net take-up including new leases, pre-leases and expansions dominated in 2021 with a share of 59% of all leasing activity.
DEMAND
Entered negative territory in Q4, however, remains positive in 2021 with a total of 14,340 sq m.
NET
absorption
Prime rents have remained firm in all focal submarkets of Budapest in Q4 2021.
headline rents
CBD
VÁCI CORRIDOR
24.50 EUR/sq m/month
17.50 EUR/sq m/month
The Hungarian economy is on its way to recovery from the pandemic-induced recession. The GKI Business Sentiment Index shows optimism in the business sector with the index reaching 2.5-year peak in November 2021. Overall demand levels are showing positive signs as 59 % of all leasing activity is made up of net take-up from which new leases were the most dominant. Total take-up in the last quarter of the year amounted to 111,360 sq m, making it the most active period of 2021 and making the end-year take-up to be 365,770 sq m. Compared to 2020, the total take-up has increased by nearly 10%. New deliveries were somewhat restrained in 2021, reaching 44,455 sq m, especially compared to the record high amount of completions in 2020. 2021 projects which are delayed to 2022 are making the 2022 pipeline to exceed the 300,000 sq m mark. Vacancy has slightly increased but is still below the 10% threshold, currently standing at 9.2%.
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Demand in the Greater Budapest Area equalled 143,530 sq m in the third quarter of 2021, showing a decrease of 19 % y-o-y from the 2020 record high levels..
TAKE up
3.49%
Greater Budapest Area
6.2%
Countryside
4.3%
Hungary total
Vacancy rate
TOTAL stock
2.57 million sq m Greater Budapest Area
1.19 million sq m Countryside
3.76 million sq m Hungary total
of the pipeline for the period of 2021-2022.
44.7%
Greater Budapest Area
25.7%
Countryside
40.3%
Hungary total
pre-lease rate
14,210 sq m of new supply was delivered in Q3 2021 in Greater Budapest, Including two new buildings in existing schemes of the East Gate Business Park Fót and the Login Business Park Dunakeszi.
12,000 sq m of new supply was delivered to the countryside in Q3 2021, represented by Cordys Capital in Jászfényszaru.
In total, 26,210 sq m of new supply was delivered to Hungary in in Q3 2021.
NEW supply
Q3 demand in the Greater Budapest Area was dominated by Renewals amounting to 77,840 sq m while net take-up amounted to 65,690 sq m. Among net take-up, pre-lease had the highest share with 57%, followed by new leases with 37%. The remaining 6% was represented by expansions.
DEMAND
36,220 sq m in Q3 2021 in the Greater Budapest Area
NET
absorption
prime rents
BTS
EXISTING STOCK
4.75 EUR/sq m/month
4.60 EUR/sq m/month
2021 market activity is slightly moderate compared to the same period in 2020, which represented a record year both in terms of take-up and new supply. 172,760 sq m of new stock was already delivered in the Greater Budapest Area in 2021 and we expect the delivery of further 133,000 sq m of new space to the market in the last quarter of 2021 alone. The significant amount of new supply arriving to the market and the high proportion of pre-lease transactions in the take-up well illustrate the continued developer and tenant appeal to the Hungarian industrial/logistics market.
After some consolidation earlier this year, prime rents have remained firm in Q3, albeit developers seem more flexible in their offered incentive structures.
CRE Business
RoundUP
INDUSTRIAL Q3 2021