lh x cw market report A4_23.03.02 v34 interactive72

BUDAPEST’S OFFICE MARKET - steadily on the road to recovery

The Budapest office market is already reaping the benefits of the full market reopening from Covid-related restrictions, with a total of around 400,000 sq. m of office space leased in 2022, an increase of 7% compared to 2021 and an increase of 16% compared to the low in 2020. 2022 saw the highest level of supply since 2009, although the output was somewhat distorted by deferred completions from the previous year. New supply was the primary contributor in increased vacancy of 11.3% - still below the 10-years average and the current average for European Capitals. Reflecting the healthy fundamentals of the Budapest market, year 2022 saw the second-highest net absorption ever, exceeding the 2019 level. In other words, occupiers continue to focus on occupying the most desirable locations with the best quality space to make flexible working attractive to employees, as their retention and wellbeing remained one of the biggest challenges for senior leaders.

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