lh x cw market report A4_23.03.02 v34 interactive72

BUDAPEST’S OFFICE MARKET - IN CEE COMPARISON

With 4.25 million sq. m of stock the Budapest office market is the largest in Central Europe after Warsaw. Despite this, the stock per capita is the second lowest in the region, indicating growth potential and apparent undersupply.

OFFICE STOCK PER METRO POPULATION IN THE CEE CAPITAL CITIES YEAR-END 2022

TOTAL OFFICE STOCK IN THE CEE CAPITAL CITIES YEAR-END 2022 (SQ M) Source: Cushman & Wakefield Research

Source: Cushman & Wakefield Research

3,5

7 million

3,0

6 million

2,0 2,5 0,5 1,0 1,5

5 million 4 million

3 million

1 million 2 million

0

0 million

Warsaw

Budapest

Prague

Bratislava

Warsaw

Budapest

Prague

Bratislava

Bucharest

Bucharest

Average of Central and Eastern Europe

Demand in 2022 was 392,000 sq. m, showing that Budapest is in a recovery phase, quickly following Warsaw and Prague. Budapest’s vacancy rate is below the Central and Eastern European average, at 11.3% at the end of 2022, making it one of the most occupied markets in the region after Prague and Bratislava.

1 000 000

OFFICE MARKET TAKE-UP IN THE CEE REGION (SQ M)

800 000

Warsaw

Source: Cushman & Wakefield Research

600 000

Budapest

400 000

Prague

Bucharest

200 000

Bratislava

0

2018

2019

2020

2021

2022

10% 16% 14% 12%

Source: Cushman & Wakefield Research OFFICE MARKET VACANCY RATE IN THE CEE CAPITAL CITIES (%)

Bucharest

Warsaw

8% 6% 4% 2% 0%

Bratislava Budapest

Prague

2018

2019

2020

2021

2022