Key economic driver in 2013 was the 21% growth of the automotive production - which alone was responsible for 25% of the Hungarian industrial output.
The 10,800 sq m built-to-suit (BTS) shed for DHL was delivered in the Budapest Airport Business Park in late 2013. Looking ahead, East Gate Business Park will expand by 10,800 sq m due to a BTS for GE Gas&Oil in H1 2014.
Demand for industrial space was very modest during the first three quarters of 2013. However, take-up in Q4 with 87,800 sq m was the largest since late 2008. Still vacancy rate increased to 21.7% by end 2013.
Headline rents decreased by some 5%, going as down as EUR 2.75 in some big-box schemes. Highest rents still reach EUR 4.25-5.00 in prime city logistics schemes.
10,000 sq m of owner occupied office space was completed by Bosch, a German manufacturer in a non-central location. No new project was added to the office pipeline which remains relatively low at 33,000 sq m and 58,000 sq m of annual completion forecasted for 2013 and 2014, respectively.
The first phase in Budapest Airport Business Park (10,800 sq m) had been already pre-leased to DHL earlier this year and was completed in Q3 2013, as the first handover in the Greater Budapest area this year.
In 2013, Árkád in Budapest expanded by 22,800 sq m of retail space and has become the biggest Hungarian shopping centre (together with Aréna Plaza).
Year-to-date commercial real estate (CRE) turnover in 2013 has already surpassed the entire 2012 volume and reached EUR 215 million by the end of Q3. The bulk of this volume was done in the institutional sector.
Budapest is one of the cheapest office destinations in Central-Europe and has started to attract global companies again. Availability in the capital varies by geography and quality and is sufficiently large enough to meet various occupational requirements.
Office markets in countryside locations are restricted to big-box schemes in industrial parks or to second-hand office space of small unit size and low quality. Pipeline in Debrecen will improve the quality of the stock.
Headline rents start from EUR 8.0 in Non-Central locations in Budapest and range to EUR 12.5 and EUR 20.0 in Central and Prime locations, respectively. Office prices in Debrecen and Györ are quoted from EUR 5.0.
The Greater Budapest area is well supplied with modern logistics and industrial space of various types of facilities. Other regions in Hungary have poor availability and are more focused on built-to-suit developments – with the exception of the Northern counties.
The market in and around the capital has been favorable for tenants for three years already as vacancy stuck at a relatively high level. Countryside markets show a mixed picture with increasing availability in the Miskolc region but still short supply in key cities like Györ and Kecskemét.
Development process is very quick and effective and many landlords own plots with building permit in place in the most developed areas.
Labour availability highly varies across the country from 6% in the more industrialized Györ region to 16% in Miskolc region.
A kereskedelmi ingatlanpiac globális vezetője
A CBRE az ingatlanszolgáltatások piacvezető szakértőjeként szolgálja ügyfeleit Európában, Közel-Keleten és Afrikában egyaránt.