Budapest Offices


Offices of the future: upcoming projects in Budapest

Mar 22nd, 2016

According to the data provided by the Budapest Property Consultants Coordination Forum, the total amount of office spaces to rent has increased by 50 885 square metres last year – which is 25.4% less than the figures of 2014, but luckily more and more projects are being announced and are in the construction phase. That means an abundance of new buildings inaugurated this year and in the upcoming few years.

According to BIEF’s quarterly report, the total amount of office spaces available and in use in the Hungarian capital equals 3 280 970 square metres. Last year saw the vacancy rate decrease at an even more rapid pace, reaching the lowest figure measured since 2008: it is currently at 12.1%. Taking both this and the increasing demands into account, it is expected that Budapest’s architectural heritage is to be expanded even further in the course of the next 1-3 years. Despite the fact that 2015 only brought around 50 000 square metres of new office spaces to let (compared to the 68 000 made in 2014), a more balanced development phase is on the horizon – which will probably not bring the promise of grand, standalone opportunities, but instead provides constant activity and productivity in the future.

Besides the general demands on the market, international service centres are also making constant inquiries, as they usually require several thousands of square metres for their offices. According to CBRE’s experts, by the end of 2015, Budapest has surpassed its regional competitors, Warsaw and Prague, in regard to vacancy rates. The organisation reckons that the capital might extend its office lots by as much as 100 000 square metres by the end of this year – which, in addition, will possibly not put a halt to the falling vacancy rates either, as the offices currently being built have already been pre-rented. Vacancy rates have decreased in all of the 20 market segments CEBRE has examined.

Váci Avenue – still reigning

The majority of the undergoing developments is still being realised at the Váci Corridor, where the first building, Building A has been inaugurated by Váci Greens in 2013, while last year saw the completion of Bulding C, rented by GE. The development company Atenor is accounted for 135 000 square metres of office space in total. Building B, which has a total area of 21 000 square metres to rent, is set to be inaugurated this year, once again to be rented and used by GE – creating another professional campus and working community. In addition, Skanska is building the 26 000 square metre Nordic Light, which is set to be occupied by its clients in 2016 as well. Speaking of Váci Avenue, the construction of V17 – developed by WING –, another soon-to-be-completed office building is currently underway. The property with a total area of 13 000 square metres will be occupied by E-On, similarly this year. WING’s AP2 project is yet to be started, which will serve as a continuation to the popular Átrium Park.

HB Reavis, motivated by the success of Váci Corner Offices, is eagerly working on the preparation of a new, possibly determining project, which is set to be built at the intersection of Váci Avenue and Róbert Károly Boulevard. With a total rentable area of 100 000 square metres, offices will be complemented by restaurants, cafés, stores and communal areas, to make the complex more interesting and desirable.

“Our team, joined by accomplished architects, is planning to unite the newest inventions of global architecture with Budapest’s own magnificent traditions in a way that not only serves our clients’ growing demands, but also positively influences the everyday life of the community. Construction is expected to begin this summer, while the first building is set to be inaugurated in 2018” – as explained by the executive of HB Reavis Hungary Ltd., Mr. Zoltán Radnóty,

New centres, complexes and the Exchange

Váci Avenue is evolving at a relatively slow pace: even if the majority of commercial developments are located here or in its vicinity, it still has some potential lots to locate new developments on. Many reckon that the next popular development area could be Dél-Buda (Southern Buda), but other locations could also results equally as sought after. The building of the Exchange at the city centre is set to be completely renovated and reimagined, as Tippin Corporation is currently developing an office space the size of 27 000 square metres, plus a commercial area of 6000 square metres – the building itself has a total area of 50 000. Raiffeisen Evolution’s upcoming development, K27 (Kerepesi Busines Center) already has a building permit, which guarantees that more news are about to come regarding that particular project. According to the original plans, a staggering complex with a total area of 64 000 square metres is set to be built in various phases.

Several projects are waiting to get started in Dél-Buda as well. Futureal is set to build an office centre named Budapest ONE, located at the yet-to-be constructed intermodal junction at Kelenföld Railway Station. The second phase of the development of Bartók Udvar is soon to begin as well, creating office spaces as big as 23 000 square metres in total. Several BTS projects are in the making: Nokia Networks is set to have a new centre of 25 000 square metres at Corvin Promenade, also developed by Futureal. The other immense BTS construction is executed by WING: according to plans, the construction of a new central building for Magyar Telekom, with an area of 60 000 square metres, is set to begin in 2016.


“The areas that have an extensive infrastructure, and can be easily approached by public transport will be the most coveted locations in the long run. But let us not forget the fact that the number of people who choose walking or using a bicycle as a method of transport has been continuously growing over the years, mainly because of practical reasons and the increasingly important idea of sustainable development. Micro-environment is another key factor, meaning that the people working in the office building of the future shouldn’t feel themselves isolated from their surroundings, enabling them to use the services they need at a walking distance. The healthy structure of a city connects and integrates work, housing, retail, culture and entertainment, and their various functions affect each other in a mutually favourable manner” – commented Norbert Schőmer, WING’s office project vice executive in an answer given for the annual Real Estate Yearbook. 




© BudapestOffices 2016.  I  All rights reserved