Budapest Offices


Utilization is at a seven year high in Budapest

Feb 2nd, 2016

Utilization rate on the office market improved further according to data provided by the most recent surveys of GKI.

Compared to six months before utilization increased in all examined segments, and in Budapest the rate reached 81%, which is the highest in seven years.

The rate hasn't changed in Eastern Hungary in the past six months and still stands at 67%, however it increased to 75% from 69% in Western Hungary.

In the last period demand has clearly increased, but unused capacity is preventing new investments.

There will likely be moderate developments on the retail properties market despite the fact that turnover data is growing stronger in this segment. In 2014 sales increased 4.1% and 6% in the first six months of 2015. For the whole years experts expect the increase to reach a total of 5%, however it is likely that it will drop to 2% in 2016.

There is still a lot of vacant capacity on the logistics properties market, but renovations and modernizations are becoming more frequent than before. According to the survey by GKI the rental prices of business properties will likely remain unchanged in the next 12 months. Sales prices can even drop in the case of retail properties and warehouses in Western Hungary. The prices of offices in Budapest and Eastern Hungary will likely not change in the next few months, but in the Western region a 1,5% increase is expected.





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