IT Sector Demands Office in Budapest

The financial sector dominated the office market in the capital of Hungary before the global economic crisis. The greatest number of new offices were leased by the banks, new prestigious headquarters were built for them.  The situation currently has changed: the most influential investors are from the information and communication technology sector.  Leading IT companies are building new headquarters, and the globally influential Hungarian companies are moving into bigger offices.

Since the financial crisis this role-change has become obvious in the Budapest office market, where the financial sector that once represented the greatest leasing demand have been gradually replaced by fast developing firms from the ICT-­sector. The ICT-sector steadily increased its share of net leases in the Budapest office market between 2012 and 2015. Besides, the record leases of the 2015 year were largely due to the tens of thousands of square meters of new main office-­developments of primary information and communication companies such as Telekom, Ericsson and Nokia.

IT-companies need modern - although not necessarily newly built -  A-­class buildings with favourable technical capabilities. A high quality working environment is more important for them than cost-efficiency factors. While the larger companies have office buildings built, the smaller but leading ICT companies increasingly opt for larger offices.

Zsolt Kákosy ­MRICS, MBA, Head of Asset Services at CBRE entrusted with the operation of Andrássy Palace­ said that easy access is important for the technology companies.  Judit Varga ­MRICS, Head of Advisory and Transaction Services, Offices ­explained that the most popular office locations for these companies are in central as well as non­-central Pest South Buda and the Váci Road. Lágymányos is notably the most preferred part for technology companies.

(Source: www.portfolio.hu)

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