Budapest office market set for record-breaking year

Portfolio
The fundamentals of the Budapest office market remained strong in the second quarter, although lower demand increased vacancy rates 1.1pp to 7.3%, the latest BRF market report said. According to Eston’s analysis, there will be about 100,000 sqm of new office space coming to the market this year, most of it concentrated on the Váci corridor.
irodaház

The pace of office development did not let off in Q2 as more office space was put to market in March-June 2020 (88,000 sqm) than in the entire 2019 (70,500 sqm).

New office space in the second half is expected to be around 100,000 sqm, which means this year could be the highest since 2010 and could surpass 2018’s 230,000 sqm record. The Véci corridor remains the focus of developments, with two of the five office buildings opened in Q2 (Agora Tower and Váci Greens F) adding nearly 60,000 sqm.

Demand for office space in Budapest was 88,000 in Q2, down 46% from a year earlier but 10% higher than in the first quarter. Net absorption remained positive as the amount of office space used grew by 31,000 sqm in Q2.

Vacancy rates rose 1.1pp compared to Q1 to 7.3%.

Vacancy rates stagnated or decreased in nearly all locations, except for Non-Central Pest where it rose from 1.3% to 8% after a new office building opened with low pre-lease rates, while a major tenant moved out of another large building.

Rental fees stagnated in Q2 and are expected to decrease slightly if vacancies keep rising.

Cover photo: Getty Images

 

More in Property

shutterstock_158635271
July 28, 2025 12:41

A surprising place for Hungarian property buyers - is it a winning investment?

They also have to compete with foreigners for the best housing

új lakások
July 28, 2025 11:00

Students have already flooded the rental market in rural areas, but not yet in Budapest

Demand side waiting for the Home Start scheme in the capital?

panel, lakás, ingatlan, lakótelep
July 25, 2025 10:46

This is sick: house prices up 22% in Budapest, and the Home Start scheme has not even started yet

Central bank says house prices rose 15% year-on-year in the country in Q1

adómentesség-devizapiac-makrogazdaság-Nemzetgazdasági Minisztérium-önkéntes nyugdíjpénztár-lakáshitel-forint-checklistpodcast
July 22, 2025 10:02

Home Start programme may backfire on young first-time buyers, GKI says

Research institute skeptical about the benefits of the new subsidised housing loan

lány-lakás-mobiltelefon
July 22, 2025 09:43

Hungarian gov't submits the 3% subsidised housing loan to public consultation

Detailed rules contain no big surprises, but there are a few twists and turns

lakás, pár, szoba, lakáskiadás
July 21, 2025 14:15

Hungarian gov't announces new details on the Home Start programme

A relief and an important clarification have been announced, but there are still some unclear details

LATEST NEWS

Detailed search