The Great Parking Space Question

June 4, 2024
6 minute read

Budapest has experienced a significant and consistent increase in car traffic year by year. The COVID-19 pandemic temporarily reduced this growth, but following the pandemic, there was a shift from public transportation to private vehicles. Consequently, the number of kilometers driven in the city almost doubled compared to 2019.

Surveys indicate that more than 300,000 cars travel daily from the suburbs to Budapest and back, while the total number of available P+R parking spaces does not exceed 6,000. According to the Hungarian Central Statistical Office (KSH), by 2023, there were 713,755 cars in Budapest alone. Including Pest county, the Central Hungarian region had nearly 14 million cars, representing almost one-third of the 41 million cars in the country.

Parking Ratios and Costs in Office Buildings

The availability of parking spaces for employees in office buildings varies by submarket. Here are the average parking ratios and rental costs:

CBD (Central Business District): 1 parking space per 100 m² of office space. Many office buildings here lack underground garages, so parking solutions often involve nearby parking houses or street parking. Average rental cost: 160 EUR/space/month + VAT (up to 240 EUR/space/month + VAT).

Central Buda: 1/70 ratio. Average rental cost: 130 EUR/space/month + VAT.

Central Pest: 1/75 ratio. Average rental cost: 110 EUR/space/month + VAT.

North Buda: 1/60 ratio. Average rental cost: 100 EUR/space/month + VAT.

South Buda: 1/60 ratio. Average rental cost: 100 EUR/space/month + VAT.

Váci Corridor: 1/65 ratio. Average rental cost: 120 EUR/space/month + VAT.

Non-Central Pest: 1/65 ratio. Average rental cost: 90 EUR/space/month + VAT.

Increasing Demand and Flexible Solutions

Recent months have shown that companies, on average, request parking ratios of 1/35, significantly higher than the submarket averages. This underscores the growing car traffic and subsequent demand for parking spaces.

If an office building cannot provide the desired number of parking spaces due to the planned parking ratio being significantly exceeded, additional spaces can be provided with a 30- or 60-day termination notice, as long as the building's occupancy and the parking needs of other tenants allow.

Flexible parking solutions and applications like Parkl are becoming more relevant due to changes in commuting habits, hybrid work arrangements, and desk sharing. These digital parking systems enable quick reservations, cancellations, and electric vehicle charging, making them attractive for building owners.

Sustainable Fleet Management

For multinational companies, ESG is critical as it demonstrates a commitment to sustainable and ethical practices, which can enhance brand reputation, attract investors, and meet regulatory requirements. Implementing robust ESG strategies helps companies manage risks, improve operational efficiency, and ensure long-term profitability while contributing positively to society and the environment.

Corporate ESG (Environmental, Social, and Governance) considerations are crucial for multinational companies. There is an application that offers a comprehensive green fleet management tool for corporate vehicles. It generates 16 different reports to help fleet managers and drivers receive feedback on their driving habits, leading to more economical and environmentally friendly driving. This can reduce fuel consumption by up to 15%, lowering harmful emissions accordingly.

This application also allows businesses to invest the saved fuel costs in climate change mitigation projects by purchasing carbon credits. These certified carbon reduction projects provide a way to offset remaining emissions, and the purchase can be documented with a certificate suitable for ESG reporting and audits.

Moving Towards Net Zero Emissions

To achieve the EU's 2050 net zero emissions goal, it is essential to avoid emissions rather than neutralize them. This involves either replacing our vehicles or changing the fuel they use. A recent EU report indicates that nearly 2 million new electric vehicles (cars and trucks) were registered this year, accounting for just over 20% of all new vehicles. Most new office buildings, and a majority of existing ones, now offer electric vehicle charging stations that can be used jointly or individually by businesses.

No items found.

Related posts

Stay Informed with Our Newsletter

Get the latest updates and insights delivered straight to your inbox.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
By subscribing, you agree to our Privacy Policy.
Discover

Stay Informed with Our Latest News 
and Analysis

At our company, we understand the importance of staying up-to-date with the latest news and analysis in the commercial real estate market. Our team of experts continuously monitors market trends and provides valuable insights to help you make informed decisions. Whether you're a seasoned investor or new to the industry, our latest news and analysis will keep you informed and ahead of the competition.