lh x cw market report A4_23.03.02 v34 interactive72

This trend is also reflected in the demand figures for the Budapest office market, with the ICT, financial and professional sectors - although their share has varied somewhat over the years - holding a stable 75% share of the total demand. In absolute terms, this implied a demand level of 240,000 sq. m in 2022, which is in line with the average of the last 4 years. In 2022, one of the largest financial SSCs renewed its contracts on 2 sites, for a total of 22,000 sq. m and an ICT signed a new contract on 6,500 sq. m. While in the past a lack of new supply has hindered business relocation, the emergence of new stock is expected to reduce the share of renewals in the demand structure from an average of 40% in recent years. Environmental,

Social and Governance (ESG) guidelines are also becoming increasingly important in the leasing decision process, driving tenants towards new stock. The demand data for 2022 also shows two large -scale owner-occupation deals: the handover of the OTP headquarters (28,000 sq. m) and the Bosch II Campus R&D centre (17,000 sq. m). The largest pre-lease transaction was concluded by E-On (16,200 sq. m), which intends to consolidate all its functions on one site. Following recent large pre-leasing transactions, The Pillar (27,500 sq. m), 100% developed for ExxonMobil, and Budapest One P2, in which Vodafone (14,000 sq. m) and BT (12,500 sq. m) are the main tenants, were delivered in 2022.