Based on current market data, it is possible that no new speculative office building will be completed in Budapest this year. This would mean that in 2025, only 5,060 sqm of speculative office space entered the market, marking a historic low for the Budapest office sector.
For comparison, the previous record low was 18,000 sqm, meaning that this year’s volume represents just over one quarter of that figure.
Two key factors lie behind this phenomenon: the persistently high development and construction costs, as well as the downward pressure on rental levels. This combination has significantly slowed down speculative development activity. Although this slowdown has been apparent for several years, the 2025 figure still remains strikingly low.
According to ESTON International’s experts, this trend is likely to continue in the short term. A major turnaround could only occur if the shortage of new supply leads to a tangible increase in rental rates, however, under current market conditions, such a shift seems unlikely within the next 24 months.
(The chart below illustrates speculative office completions between 2013 and 2025.)
The Szerémi Office Building, recently acquired by WING Zrt., Hungary's leading real estate company, is being renewed.
Market Report 2020 H2 What will investors, tenants and owners face in 2021? Budapest Office Market Tamás Pál MRICS -…
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