BRF Office Market Report 2018 Q1

Two new office buildings were delivered to the Budapest office market in the first quarter of 2018, totalling 18,280 sq m. In the CBD Markó Offices 9 was handed over on 2,630 sq m, whilst the new D phase of Váci Greens was completed with 15,650 sq m in the Váci Corridor.

Furthermore, one asset was added to the BRF stock as in the future it will operate as an office building again.The total modern office stock currently adds up to 3,446,110 sq m, consisting of 2,781,660 sq m category ‘A’ and ‘B’ speculative office space as well as 664,450 sq m owner occupied space.

As the result of our annual stock revision, 1 building was excluded from the modern stock and further 46 buildings GLA’s were amended due to re-measurements taken place over the beginning of 2018.

The office vacancy rate has decreased to 7.3%, representing a 0.2 pps reduction quarter-on-quarter – the lowest rate ever recorded on Budapest office market. In line with the preceding quarters, the lowest vacancy rate was measured in the South Buda (2.7%) submarket whereas the Periphery still suffers from an overwhelming 31.2% vacancy rate.

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