Budapest Offices


Rent or Buy an Office: Let Us Guide You

May 18th, 2018
office space interior

In the current property market in Budapest, both office rental and office purchase are a big investment for a company. According to experts, the trend of current price increases will continue this year, so it is worth taking into account the best option for any company. There are obviously many factors influencing the decision, whether it is about the company's profile, its size, its economic and financial situation, but there are irrefutable arguments for both office rental and office purchase. 

If you choose to rent an office

In case of office rent, the start-up cost is much smaller than in case of purchase. When buying an office, it is usually expected that a certain proportion of the purchase price, usually between 10 and 30 percent, will be required as an advance payment. This could be a disproportionate cost for a small business. In the case of a leaseholder, they usually ask for 1-2 months' savings, which is a much smaller investment than the cost of the abovementioned purchase advance.

Some of the monthly expenses are also cost of an enterprise for eligible rental, which is why the tax base decreases, which also gives a lot of profit.

In addition, other property-related costs such as conservation works, minor or major repairs, etc. the owner is charged, not the tenant. Of course, the content of the contract depends on the content of the agreement.

If the size of the company is expanding or decreasing, the number of its employees rise, the search for a new office may become necessary and, if there is a possibility to proceed, the termination of the rental contract is much more flexible. However, in the case of a purchased office, it is difficult to move on.

If you choose to buy an office

The property you buy is always worth the money that raises the value of the company. Furthermore, since last year, small and medium-sized businesses can benefit from a tax base of over 30 million forints, so even if they cannot predict the full amount in the bookkeeping, they will always have the opportunity to get the most out of the deal. 

Your real estate is safe because you do not have to worry about what's going to happen if the lease expires. No question, whether you will have to look at a new office or not?

According to the Budapest Research Forum, office rental is much more preferred in Budapest, since only 3.5 percent of the eligible office spaces are under ownership.

Despite the trends, arguments and controversies, the head of the company decide whether to decide on its own property or rather to rent it. Both of these can be a valid decision, as both the rental and the purchase offer advantages and disadvantages.


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