lh x cw market report A4_23.03.02 v34 interactive72

OCCUPIER’S PERSPECTIVE

2020 has disrupted old operating models, and new habits have emerged, notably with the widespread adoption of the home office. Companies have recently begun to consciously assess their options and revalue their real estate to create a place for returning employees to be productive. These spaces need to be highly functional and sustainable, offering a high-quality experience to encourage engagement while balancing costs. Only 28% of SSCs surveyed by HIPA plan to downsize their offices. In other words, the new employment impact of the home office will have a more fundamental impact on office use than office size. According to the survey, the proportion of collaborative spaces and individual workspaces will increase in the future, but hot desking will become more common. In the Budapest market, neither headline rents are falling nor lease periods are shortening - although hand back options are more common in new developments and break options in second-generation projects. The projected increase in subletting has not materialised.

SUBMARKET PRIME RENT AS AT Dec-22 (Euro / sq. m / month)

Y/Y growth

3yr CAGR

5yr CAGR

10yr CAGR

CBD

24.5

0,0%

-0,7%

0,4%

1,6%

Central Buda

20.0

14,3%

4,6%

4,6%

2,9%

Central Pest

18.0

5,9%

2,9%

2,4%

1,5%

Váci Corridor

18.0

2,9%

2,9%

3,4%

2,4%

NC Buda North

17.5

12,9%

5,3%

4,2%

2,6%

NC Pest

15.5

6,9%

1,1%

3,2%

1,8%

NC Buda South

18.0

5,9%

2,9%

5,2%

3,7%

Periphery

11.5

4,5%

1,5%

2,8%

1,4%