Developer Describes Budapest Office Market To Be Dismal
- 18 Dec 2012 8:00 AM
The situation on the Budapest office market is quite dismal, as the net leasing area has been contracting in the last two years, CEO Tibor Tatrai of property developer Futureal told Napi Gazdasag. Businesses are looking for smaller office buildings. Demand for new office spaces is fuelled by rationalisation and better space usage, he added.
Besides the lack of demand, there is a shortage in financing and transactions on the commercial property market, Tatrai added.
In the bigger picture, he continued, Hungary has disappeared from investors’ maps as a strategic investment site because of the aggravated country risks.
Foreign investors are skipping over Hungary and Poland remains their first choice in the region, he said.
Despite the unfavourable environment, Hungarian-owned Futureal will start a €16 million project in Budapest’s Ninth District next year adding 6,200m2 of office space.
The Corvin Corner project will be completed in 12-14 months.
Occupancy rates at two of the adjacent Corvin Irodak offices will rise to 95% by the end of the year, Tatrai added.
Source: Hungary Around the Clock
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