A lot of Hungarian office spaces were rented in the 2nd quarter of 2014, and several current tenants renewed their contracts. The rate of the office spaces not yet rented decreased by 2.3 percent.
According to experts we need some more successful quarters like the second one of 2014 was to say the crisis have finally ended on the office market. In the 2nd quarter of 2014 several new and current contracts were made and renewed. Although the success is yet temporary, the experts are optimistic about the future. The total square meterage of Budapest offices was more than 3.2 million in the April-June period of 2014. Inaugurating the 21-thousand square-meter Váci Corner Offices the square meterage of the A and B category offices increased to 2.6 million.
The Rate of Unused Office Spaces Decreased by 2.3 Percent
The rate of unused office spaces is 17.6, which is 0.9 percent less than it was in the previous quarter of 2014 and 2.3 percent less than it was last year. The rate of unused offices to rent also decreased: it’s 21.9 percent now. The aim is to decrease this number to 8-10 percent, because then new developments could finally begin, and it could make the investors be more interested in Budapest property.
Southern Buda Is the Most Popular among Tenants
According to the statistics Southern Buda was the most popular and the Budapest metropolitan area was the least popular among tenants: the rate of the unused office spaces there is 11.8 and 31.9 percent. In the second 3 months a 191720 gross square-meter office space was rented in total, which means a huge success. Several transactions were made where the rented office space was larger than 5 thousand square meters. In the 1st half of 2014 a 248.9 thousand square-meter office space was rented, which is 71 percent more than the results of the 1st half of 2013. 53 percent of the transactions constituted of renewed contracts, 20 percent of them of new contracts; and the average size of the rented offices was 1020 square meters.
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