Elemzések

Market report 2017 H1 Industrial and logistics properties

Dynamically expanding developments

In the first six months of 2017 properties of about 49 thousand square metres were handed over, which is twice as much as the volume of handovers in the same period last year. The annual rate of expanse in supply is going to be higher than it was last year. About 101 thousand square metres of developments are expected to be completed until the end of the year, which indicates a 40% growth in comparison with last year. Since the empty areas are becoming scarce, developers’ activity is expected to be on the increase, while supply is going to exceed two million square metres.

The biggest volume construction works are taking place in the western suburbia, in Inpark Páty. The 23 thousand square metre investment is carried out by NIPÜF Zrt., which is owned by the state but is an active market player. The company focuses on developing properties in accordance with domestic and international clients’ demands.

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Office market report Q3 2017

ESTON International hereby reports The Budapest Research Forum’s Q3 2017 office market summary.

Two new office buildings were completed in Q3 2017; Graphisoft Park Start-up building was handed over on 2,500 sq m in North Buda, while Nexon’s 4,000 sq m owner occupied headquarter was handed over on the Váci Corridor submarket. The total Budapest office stock totalled 3,353,235 sq m. The total stock comprises 2,684,655 sq m of Category ‘A’ and ‘B’ speculative, and 668,580 sq m of owner occupied buildings.

Vacancy rate has continued to decrease by 1.0 pps quarter-on-quarter to 7.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.3%), whilst the Periphery submarket registered again the highest figure (28.5%).

Demand in Q3 2017 increased by 67% compared to the previous quarter, comprising 164,985 sq m. Owner occupation deals represented the highest share of the demand in the third quarter with 32.7% share, followed by new deals with 27.6%. Renewals equated 24.8%, while expansions accounted for 6.4%. Share of pre-lease agreements represented 8.3% of the total leasing activity.

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Industrial property market report Q2 2017

ESTON International hereby reports The Budapest Research Forum’s Q2 2017 industrial market snapshot.

In the second quarter of 2017, two buildings were added to the industrial stock with a total size of 20,380 sq m. A new 8,790 sq m warehouse was delivered at BILK Logistics Park, whilst the BRF included M7 Dunaharaszti – an existing 11,590 sq m warehouse to the Greater Budapest industrial stock.

The total modern industrial stock in Budapest, and its surroundings, stands at 1,953,790 sq m as of the end of Q2 2017.

Total demand amounted to 212,750 sq m in Q2 2017, which is the highest quarterly volume on record. Renewals accounted for 75% of the total take-up, while the share of new lease agreements amounted to 19% of the total take-up. Two pre-leases were signed during the quarter, totalling 10,980 sq m and represented 5% of the total take-up, whilst the remaining 1% was generated by expansions.

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Office market report Q2 2017

ESTON International hereby reports The Budapest Research Forum’s Q2 2017 office market summary.

No new office buildings were completed in Q2 2017. The total Budapest office stock totalled 3,346,735 sq m. The total stock comprises 2,682,155 sq m of Category ‘A’ and ‘B’ speculative, and 664,580 sq m of owner occupied buildings.

Vacancy rate has continued to decrease by 0.6 pps quarter-on-quarter to 8.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.1%), whilst the Periphery submarket registered again the highest figure (33.1%).

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Market report 2016 – Industrial and Logistic Properties

Developments launch

71 thousand square meters of new industrial/logistics premises were handed over in 2016; this amount exceeds the sum of all new deliveries from the previous five years. As vacant spaces ran out the intensifying of construction activity is foreseen; however, annual volume of new supply is not expected to return to the formerly usual levels of 150-200 thousand square meters.

Several pre-let and BTS halls are expected to come to the market in 2018; majority of these are located in the southern sector of the M0 ring road.

Developers’ interest is rising in launching new (partially) speculative projects. New developments are primarily realized in the southern-Budapest agglomeration.

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Market report 2016 – Investment

2016 brought an outstanding growth in property investment volume; the sum of deals doubled comparing to 2015 as it approached 1.55 billion euros. This is the second largest amount ever recorded in the Hungarian market.

High quality office buildings continue to be the most wanted; several such properties were sold over EUR 50 million. German investors are active in this segment again; additionally, domestic real estate funds successfully closed many valuable deals as well. The upcoming scarcity of premium offices became apparent by the end of 2016. According to the expectations forward purchase agreements will return to the market.

Domestic real estate funds still have a great appetite int he EUR 30-50 million price range; the Diófa Fund Manager and the Erste Real Estate Fund were active buyers, just as they had been in the previous year.

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Market Report 2016 – Modern Offices

Developers’ rallye launch

Office deliveries doubled in 2016, comparing to last year, and development pace is expected to get even stronger.

Construction of some 303 thousand square meters new offices has already begun; total volume of prepared new schemes, which may be finished till the end of 2018, exceeds 630 thousand square meters. Developers share a positive sentiment of the future and speculative developments are back on, especially where adequate phasing is possible.

Three out of the six new deliveries took place in the Váci út office corridor, representing 42% of the annual development volume.

Newly built office volume is expected to surpass 100 thousand square meters in 2017; the primary locations of new projects are South Buda and the region of Váci út. Office developments have been absent in South Buda since 2010; thus, new premises are expected to quickly rent.

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