Quarterly take-up figures showed a poor performance of the Budapest office market, with only 57,200 sq m let in the weakest quarter since Q1 2012.
The volume of renewals registered was low, which resulted in different market shares among the deal types as compared to previous years. The shares of new deals and expansions were higher than in the last 3 years.
Demand for small office space is still strong; 129 out of 158 transactions were signed for office spaces below 500 sq m.
The overall vacancy rate remained almost unchanged during the quarter, standing at 18.5% in Q1 2014.
Tenants are still in a strong position in the negotiations. The Budapest office market is offering affordable prime office locations as compared to the European average.
Source : DTZ (Groupe UGL)