Offices under construction Q4 2010

The latest market report of Budapest office market developments which are currently under construction has been prepared by RERA (Real Estate Research Association).

Waiting for a sign?

Further decrease to come
A total of 6,280 sq m office space is expected to be handed over in the last quarter of 2010. This figure is the lowest since 2006. With this, modern office stock reached 145,339 sq m this year, which represents a 36 percent drop- in comparison with the 2009 stock-expansion (227,689 sq m). For next year, only 128,000 sq m of new office space can be forecasted, which also means further decrease in comparison with the preceding years. The market is still characterized by developers’ inactivity, there are however new, speculative projects in the process of acquiring permits.

”New-old” deliveries
In Q4 2010 there will be no new speculative office developments, which is without precedent so far. Two offices are going to be handed over in this quarter: Downtown IX in South Pest region, having received (after a long delay) its occupancy permit in October. The other office building is Nestlé Hungária’s former headquarter building, which is not a newcomer on the market, just fully reconstructed. It offers 2,200 sq m new office space under the name Duna Bellview. From the buildings under construction, new deliveries are expected only in Q2 2011, indicating low activity on the market.