Large Office space Supply in Budapest

The largest supply of modern office space in 15 countries of Central and Eastern Europe (CEE) was recorded in Warsaw, Budapest and in Prague, while the biggest increase of new supply in the first half of 2019 was noted in Bucharest. The most active tenant sectors are IT, professional services, banking and BPO/SSC. More and more office buildings can boast of prestigious certificates, modern technological and ecological solutions and innovatively designed space.

This has been found by a research conducted by Colliers International and published in its recent office market report in which experts focused on such data as total office stock, take-up and lease conditions, vacancy rate levels, under construction area and the forecast for the upcoming years.

“Total modern office stock in 15 CEE countries in the first half of 2019 reached 27 million sqm. In that period, developers completed 707,000 sqm while 3.7 million sqm is currently under construction,” says Dominika Jędrak, Director of Research and Consultancy Services, Colliers International.

The majority of modern office projects is located in the capitals of the countries, although, the office market is also developing in regional cities. In the first half of 2019, in all capitals of the 15 countries analyzed, tenants leased over 1.5 million sqm of modern office space. “Currently, the largest amount of modern office space under construction is in Warsaw, Budapest and Sofia. We forecast that in 2021 the total office stock will exceed the level of 30 million sqm,” Anna Maroń, Analyst, Research and Consultancy Services in Colliers International adds.