Office space glut in Budapest expect to ease in second half

The ratio of vacant office space exceeds 23% in Budapest due to the fact that as much as 120,000 square metres of new office space were completed in the first half of the year, real estate advisor DTZ Hungary Kft reported in its most recent summary.

Investors planned the completion of 150,000 sqm for the whole of this year, 80% of which was offered for rent in the first six months an thus the supply is expected to decrease in the second half of the year, the report added. Public institutions appeared as new clients for rented offices accounting for a third of the six-month demand.

Investors currently plan to built 200,000sqm of new offices, expected to be completed according to the development in demand, DTZ believes. DTZ forecast some 100,000sqm office space to be built next year, the lowest volume since 1997.

(source: Hungarian News Agency)

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