Logistics Real Estate Increased by Nearly 120,000 sqm

In the last three months of the year, 60,900 square meters of new logistics real estate was delivered in the Budapest agglomeration, while in the countryside almost 48.300 square meters were delivered, according to the Budapest Real Estate Consultants' Forum (BIEF).

Last year, a total of 333,210 square meters of new space was added to the industrial real estate stock in the Budapest area, reaching 3.137 million square meters by the end of the year, while in the countryside it exceeded 1.444 million square meters.

The vacancy rate in the metropolitan agglomeration stood at 3.8% at the end of last year, 100 basis points lower than in the previous quarter but 65 basis points higher than the base value.

At the end of the quarter, a total of 120,100 square meters of industrial-logistics space was vacant and five buildings had vacancies of more than 5,000 square meters, the release said.

The total tenant demand in the metropolitan agglomeration amounted to more than 222,700 square meters in the fourth quarter, a year-on-year decrease of 7%. By the end of 2022, the annual tenant demand rose to 679,700 square meters, 7% above the record level of 2021.

Pre-lets accounted for the largest share of total demand, at 55%, while new leases accounted for 29% and renewals for 15%.

According to the release, the largest ever pre-letting contract in the Budapest industrial real estate market was registered in the fourth quarter (CTPark Sziget), with more than 118,000 sqm.

Members of the Budapest Property Consultants' Consultative Forum are CBRE, Colliers, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.