Budapest Business Journal 3109

VOL. 31. NUMBER 9 | MAY 5 – MAY 18, 2023

HUF 2,100 | EUR 5 | USD 6 | GBP 4

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BUDAPESTBUSINESSJOURNAL.COM

SPECIAL REPORT INSIDE THIS ISSUE

Real Estate: Offices

Less Office Building Activity for 2023 A limited number of office development projects are expected to be undertaken in the immediate future. Developers are exercising caution given an uncertain geopolitical and economic market environment that impacts all development areas.  16

Role of FM, PM is Being Enhanced Ever more sophisticated requirements from tenants, concerns over rising utility prices, and the increasingly central role of ESG and well-being have further enhanced the function of property and facility management providers.  35

Weak Prospects are Temporary

SOCIALITE

Veszprém, Balaton Shine as ECoC In March 2019,Veszprém, just north of Lake Balaton, was made a European Capital of Culture for 2023.

The program is officially called the VeszprémBalaton ECoC. Having weathered COVID19 and war since that announcement, its year is well underway.  38

NEWS

MNB Takes Action as Risks Moderate Although the National Bank of Hungary did not change the base rate at its most recent meeting, it narrowed the upper end of the interest rate corridor. However, modifying the base interest rate is not on the agenda at this stage.  3

BUSINESS

Despite a short term weak economic outlook, German firms intend to continue investing and increasing headcount, says András Sávos, president of the country’s business chamber here. 10 BUSINESS

Central Bank Launches Eco-Friendly Product Finder The National Bank of Hungary (MNB) has published a report on the state of green finance in the country, highlighting the robust growth of climate-friendly loans and announcing the launch of a green financial product finder tool.  7

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Budapest Business Journal | May 5 – May 18, 2023

IMPRESSUM

THE EDITOR SAYS

GERMAN INVESTORS MARK HUNGARY’S ECONOMIC CARD

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Balázs Barabás,

Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

LISTS: BBJ Research (research@bbj.hu)

For all the fanfare made of Asian investments (think of our Korea Country Focus in the last issue or our China special back on March 10), they are relative newcomers to Hungary’s foreign direct investment block. The Germans, however, have been here since before the change in regime in some cases. They are genuinely, if you will pardon the pun, invested in the success of the country.

Or, at the very least, in the continued success of their businesses in this country. That’s not exactly the same thing, but it does head in broadly the same direction.

It means a certain weight is given to the opinions of the German-Hungarian Chamber of Industry and Commerce (DUIHK). The business organization is unusual for a bilateral chamber on two grounds. Firstly, it is partly funded by the German state. Secondly, it dwarfs all the others in terms of membership. According to its website, it has some 900 members. Little wonder, then, that in previous years, when the chamber has presented survey results, there has frequently been a high-ranking government member in attendance, often (though not exclusively) Minister of Finance Mihály Varga. Its 30th Anniversary Gala Dinner on June 2 is due to be attended by President Katalin Novák.

But back to business. The latest German chamber sentiment survey was presented at the end of April and makes for interesting reading. German firms often seem more bullish about how accommodating the Hungarian economy is to their needs and how predisposed they are, therefore, to reinvesting. In this year’s survey (based on the answers of some 250 executives from DUIHK member companies and some other foreign chambers in Hungary), 79% said they would choose Hungary as an investment location again. While that sounds impressively high, it is markedly down from the record levels of the last couple of

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years of 88%. One of the attractions of the German survey is that it is conducted simultaneously in chambers across the region, making comparisons very straightforward. Some of those countries saw scores of 90% or more on reinvestment.

Other figures leap out. A 10-year-long trend of improving satisfaction with the economic policy framework came to a halt this year. Members are less happy with the tax system and the predictability of economic policy. DUIHK’s “Investment Climate Index,” calculated annually based on the survey results, fell this year from six to two points (on a scale of -100 to +100).

There are some brighter spots. Despite rising wages and an expectation that labor costs will increase by almost 15% this year (significantly more than in Poland, the Czech Republic, and Slovakia, where the wage increase is estimated at 8-10%), Hungary still has the third lowest wage costs in the EU, according to the chamber. That means its cost advantage for exporting companies, in particular, will continue to exist for some time, even with solid wage growth. And, while it is true that the situation of the national economy was described as “significantly worse” than in spring 2022, and the outlook for the next 12 months is also seen as fairly weak (one in two companies expect the situation to deteriorate, while only 13% expect it to improve), this ratio is already noticeably better than last fall.

Nobody is suggesting that German businesses are about to make a run for the hills and over Hungary’s borders to pastures new; far from it, in fact. But, equally, it is clear that, as the chamber notes at one point in the survey, there is a need for action on the part of the Hungarian government.

Robin Marshall Editor-in-chief

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THEN & NOW The color photo from state news agency MTI shows Liliána Csernyánszki of DVSC Schaeffler (right) and Kisfaludy Anett of FTC-Rail Cargo Hungaria in action in the 23rd round of the women’s first-class handball league at the Debrecen Hódos Imre event hall. The black and white image from the Fortepan public archive shows a women’s full-pitch handball match in the FTC stadium on Üllői út in 1949.

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Budapest Business Journal | May 5 – May 18, 2023

News

• macroscope

Central Bank Takes Action as Risks Moderate

Although the National Bank of Hungary did not change the base rate at its most recent meeting on April 25, it narrowed the upper end of the interest rate corridor.

The decrease in the risk of extreme scenarios made the move possible, according to the central bank’s deouty governor.

However, modifying the base interest rate is not on the agenda at this stage.

ZSÓFIA CZIFRA

The Monetary Council of the Hungarian National Bank (MNB) held the 13% level of the central bank’s base rate at its latest rate-setting meeting. However, it narrowed the interest rate corridor, reducing the upper edge by 450 basis points from 25% to 20.5%.

The central bank’s base interest rate has been at this level since last September, and the council also kept the one-day deposit interest rate at 18%. The lower edge of the interest rate corridor was left unchanged

at

12.5%.

The decisions met analysts’ expectations.

Among the factors that made the decision possible, MNB deputy governor Barnabás Virág highlighted that gas and electricity prices had fallen significantly in Europe, gas reservoirs are at an adequate level, the end of the interest rate cycle of the major central banks is within sight, and capital inflows have been observed in emerging markets.

Producer Price Index of Industry in Hungary (2002-2023 January-March)

Source:

Among the internal factors, the foreign exchange market has stabilized, the government securities market is stable, auction demand is adequate, the balance of payments has improved, and the EU agreement has been reached, Virág said at a press conference following the decision.

The deputy governor noted that the current level of the base interest rate is adequate to manage fundamental inflation risks, so its modification is not on the agenda. He said a strong, lasting downward trend in inflation would be necessary before any cut could follow.

Step on the Path

When asked whether the Monetary Council’s decision could be considered an easing, the vice president said it was an important step on the path the MNB embarked upon in October. The data of the following months will decide how it should proceed, he added.

He underlined that the central bank is applying “a prudent and cautious approach” to the interest rate reduction of overnight deposit tenders. It will continuously evaluate the durability of the improvement in risk perception, external balance processes, and the preservation of market stability, Virág said.

Concerns related to the international banking system are being evaluated.

The market environment, central bank

interest rates, and investor risk-taking are also important points to be factored into the decision-making process.

Virág pointed out that in Europe, a general trend in inflation could be observed, but core inflation had moderated less. In Hungary, inflation peaked in January, and the decline in food price inflation continued in April.

In the coming months, the consumer price index is expected to decrease at an increasingly rapid pace. The strengthening of base effects from the middle of the year will contribute to this.

The disinflation path will continue at a faster rate than in recent months from the second quarter on, he said.

The central bank’s move and the proceeding announcement made a week before the actual decision represented a complete communications turnaround.

Previously, the central bank had emphasized its strictness and raised the required reserve ratio as a sign of this, according to Gábor Regős, head economist at Makronóm Intézet.

Meaningful Change

The reduction to the top of the interest rate corridor does not significantly affect the market loan interest rates, as this is more affected by the interest rate of the overnight deposit instrument. At the same time, it does indicate a meaningful change, the economist argues.

The 450-basis point reduction can be considered a firm step and suggests that the actual easing may begin at a definite pace in the coming months, Regős says. He adds that the market was not surprised by the move, as evidenced by the fact that the forint exchange rate did not react substantially to it.

However, according to the economist, the central bank’s forward-looking guidance does not contain a clear indication for the coming months.

Although the MNB announcement emphasizes the need to maintain a strict monetary policy, it also states that, during subsequent interest rate decisions, the Monetary Council will consider the durability of the improvement in risk assessment and will decide on any change to the overnight deposit instrument’s interest rate based on this.

The guidelines, therefore, do not definitively say that there will be an interest rate cut in May, but neither do they say that it is entirely out of the question.

“According to our expectations, the one-day deposit interest rate will not decrease in May, but only in June or July, if the risk assessment allows it, i.e., the EU negotiations are progressing properly. At the next meeting, however, a further lowering of the ceiling of the interest corridor is not excluded,” Virág had said after the decision was taken.

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Budapest Business Journal | May 5 – May 18, 2023

Hungary and Ukraine’s Neighbors Ukraine win EU Import ban Concessions Crisis Roundup measures. While Hungary’s ban is due to last until June 30, the statement from the European Commission said its steps would enter into force on

The European Union has agreed to a temporary ban on importing specific agricultural products from Ukraine, Minister of Agriculture István Nagy reported in a post on his Facebook page on April 28.

May

2

and last until June 5.

During a break in a meeting with other EU farm ministers in Luxembourg on April 25, Nagy said that he had wanted guarantees allowing a ban on imports of Ukrainian grain to remain in force until the end of December. He added that further negotiations were necessary on expanding the bans to products in addition to those recommended by the EU.

“Our members are desperate and don’t support any import bans; in fact, we need imports.”

NICHOLAS PONGRATZ

“With the application of an extraordinary protection measure, the EU has allowed a ban on the import of a number of agricultural products from Ukraine to member states as long as the current extraordinary market situation remains in place,” Nagy said in the post.

The European Commission said it had “adopted exceptional and temporary preventive measures on imports of a limited number of products from Ukraine under the exceptional safeguard of the Autonomous Trade Measures Regulation,” in a press release on May 2.

It said these measures were necessary in order to help ease “serious logistical bottlenecks” in Bulgaria, Hungary, Poland, Romania and Slovakia of wheat, maize, rapeseed and sunflower seed originating in Ukraine. The statement emphasized that these products could

Minister of Agriculture István Nagy, seen here at the handover of Hungary’s largest egg production facility on April 20, says Hungary and four other states have won EU approval for a ban on some Ukrainian agri-goods. Photo by Zoltán Máthé / MTI. continue to circulate freely in all other member states and could “continue to circulate in or transit via these five member states by means of a common customs transit procedure or go to a country or territory outside the EU.” With the agreement, Nagy said the European Commission had finally acknowledged the severity of the issue in these countries. Earlier, the EU had exempted Ukrainian grain from customs duties and quotas in order to expedite deliveries to countries in the Middle East and Africa.

However, these so-called “Solidarity Lanes” subsequently flooded the markets in neighboring countries. In addition to agreeing to a temporary ban, Nagy said the EC was proposing EUR 100 million in extraordinary support for farmers in member states neighboring Ukraine.

Phase in, Phase Out

Hungary’s Minister of Agriculture added that its ban on Ukrainian grain imports would be phased out once Brussels has introduced its own

Although these countries had introduced their bans on certain agricultural products from Ukraine in mid-April in an effort to protect their domestic producers, not all market participants were pleased by the actions.

Hungary’s grain lobby criticized the ban, for instance, saying it would lead to shortages and undermine efforts to curb the highest inflation rate in the EU. “Our members are desperate and don’t support any import bans; in fact, we need imports,” Zsófia Pótsa, secretary general of the Hungarian Grain Association, which represents millers, grain processors and traders, told Bloomberg News on April 21.

She emphasized the need to import about 700,000 tonnes of feed corn following a poor harvest last year, highlighting that Ukraine would be the cheapest supplier.

Pótsa added that stifling the influx would keep pressure on food prices in Hungary, where inflation still exceeds 25%.

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The fear of recession brings a thaw to the labor market. Large companies are expected to start hiring again, but the lack of skilled workers remains a consistent hurdle on the market. Inflation is not making things easier, as companies need to make more revenue to raise wages and avoid employees leaving.

BALÁZS BARABÁS

Since our last edition of HR Matters, inflation has continued to exert a strong influence on the labor market, directly or indirectly. Salaries and price growth have fueled one another; according to the EU statistical agency Eurostat, average hourly wages and salaries increased by 16.4% in Hungary last year, the fastest rate in the European Union. In a regional comparison, average hourly wages and salaries rose by 4.7% in the Czech Republic, 11.7% in Poland, and 6.1% in Slovakia.

It seems, however, that employees are still not happy with their revenue growth, as between January and March this year, the number of job seeker applications posted on the job portal profession.hu increased significantly, by 44% year-on-year.

Meanwhile, the labor shortage seems to be easing on the employer side, with the volume of employer advertisements for open positions falling

by

18%

compared to Q1 2022. This is a median figure, and the situation regarding specific professions shows a different picture: the number of openings for jobs in law, legal consulting, education, science and sport climbed, while numbers in all other areas fell from a year earlier, profession.hu said.

The criteria for job selection confirms salary as being the main driver for searches in Hungary: 85% of employees consider this their top priority, according to a survey conducted by Randstad, the international recruitment agency.

Besides salary, Hungarians also value pleasant working environments and long-term job security.

Price Rises Falling

Economic research institute GKI revealed a positive trend, which seems to have stabilized for six months now: a decreasing rate in price rises.

HR Matters A monthly look at human resource issues in Hungar y and the region Photo by takasu / Shutterstock.com

Skilled Heads Still Hunted on the Hungarian Labor Market

In commerce, only a quarter of companies plan price raises in the next three months.

Compared to March, this figure has shrunk by 13 percentage points, while those looking to lower prices stands at 10%, as it was in March, GKI says.

But how does this compare to salary growth? According to the Central Statistical Office (KSH), in February 2023, average wages for full-time employees were: • gross wage: HUF 531,200, a 0.8% growth, year-on-year; • net wage: HUF 366,400 • real value of wages: -19.6%, with inflation at 25.4% The fall of real wages has been continuous for six months and has increased from 1.9% in September last year to 7.6% in January.

The lowest salary raises were recorded in the health sector (4.3%) and in arts, recreation and entertainment (7.6%).

The decrease in real wages has also been recorded in a survey conducted in February by labor force services provider Trenkwalder. Based on data provided by 500 respondents in the private sector, 43% are unsatisfied with their salaries,

News | 5

in average hourly wages in Q1, by 19%, close to HUF 1,800, another Trenkwalder survey indicates. Middle managers were less fortunate; their salary saw a modest growth of 10.5%, based on data from 500 employees in Hungary.

Physical workers in Central Hungary and Budapest saw the highest raise, at 30%, compared to last year, thus reaching an amount of HUF 2,350 per hour.

In other regions where the raise has been lower, such as Northern Hungary, analysts expect a further raise by mid2023 to cope with the labor shortage.

As for middle managers, their raises of 10.5% are obviously not following the 25.4% inflation, but companies cannot grow their revenues at a pace that allows them to raise salaries accordingly, which endangers their ability to retain a skilled workforce.

Despite that, employers seem optimistic. A labor force forecast compiled by ManpowerGroup indicates that in Q2 2023, 26% of Hungarian employers plan to expand their workforce, while 22% plan to reduce it.

Most of them, 49%, plan no change.

ManpowerGroup says those looking for a job should turn to energy and public utilities, finance, real estate, and IT sector companies, as these are the ones most likely to hire. This willingness to expand is mainly due to the lesser chance of an economic recession perceived by these companies.

This optimism is mainly shared by large companies with more than 250 employees. Filling open positions is still challenging, with 82% of the companies indicating this as somewhat problematic and 19% saying it causes serious setbacks. The most sought-after skills are in production, engineering and IT.

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and

17%

are not expecting any raise at all this year.

As for what amount would be acceptable in the case of a raise, the majority indicated 20-30%. But they do not expect this to happen, and 55% of the respondents count on a deterioration of their financial situation this year compared to 2022. Despite that, twothirds of them consider the stability of their job more important than a salary raise in line with the inflation rate.

Another figure from the same survey somewhat contradicts this finding, as 57% of the respondents said they would take another job in the case of a 30% higher salary offer. In comparison, 8% would leave their current job for just a 10% higher salary. On the other hand, the respondents do not limit themselves to money; twothirds said they would accept for a limited time (one or two years) receiving their raise in the form of travel expenses, qualification courses, or home office.

Hard Work Pays Off

But not all categories were hit equally by real wage shrinkage. Physical workers enjoyed a higher increase

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Budapest Business Journal | May 5 – May 18, 2023

LG Hungary Celebrates Decade of OLED Innovation With new TV Lineup LG Hungary has celebrated the 10th anniversary of its OLED panel technology, which has significantly impacted the television market in Hungary over the past decade. The event on April 27 provided an opportunity to discuss the technology’s growth, consumer preferences, and future innovations.

GERGELY HERPAI

Krisztián Szili, LG Hungary’s marketing director, acknowledged the company’s role in developing OLED technology.

“A decade ago, LG opened a new chapter in television with OLED technology. It’s been a journey filled with challenges and triumphs, and we’re proud to have contributed to the field,” he told the press conference.

Andrea Sztupár, managing director of GfK Piackutató Intézet, discussed the evolution of OLED TV sales in Hungary with Szili.

“Though overall television sales in Hungary did not increase significantly

since

2020.

between 2014 and 2022, demand for OLED displays has grown steadily, with nearly 25,000 OLED displays sold annually by 2022,” she noted.

LG Hungary showcased its latest OLED range at the 10th-anniversary event, including G3 and C3 series displays, the world’s first

Szili highlighted the unique aspects of OLED technology that have contributed to its popularity.

“OLED displays do not require a separate backlight for pixels, allowing for perfect black representation. This feature has enabled the production of thinner, lighter, and even curved panels for a more immersive, realistic, and richly contrasted viewing experience,” he explained.

adjustable curvature OLED gaming TV, and the stylish Objet Collection series.

The products exemplify LG’s dedication to innovation and its commitment to pushing the boundaries of what is possible with OLED technology, it says.

Falling Prices

42 inch

2022, it was HUF 470,000. These factors and a wider range of products have positively impacted demand. This has been especially evident during major international sports events, such as the European Championships and the Olympics,” she said.

Over the years, the Hungarian market has shown varying preferences for screen sizes. While larger OLED TVs with a diagonal of more than 60 inches (152 cm) were popular between 2015 and 2019, smaller sizes in the 45-54 inches (114137 cm) category have gained traction

Sztupár elaborated on the increasing accessibility of OLED TVs in Hungary, noting how the price has dropped over the years.

“In 2014, the average price for an OLED TV was nearly HUF 870,000, while in

The 55-59 inch (140-150 cm) range has consistently topped sales charts since 2014.

Another factor contributing to the success of OLED TVs in Hungary is the increasing demand for smart TVs. With built-in internet connectivity, consumers can access streaming services, apps, and social media platforms directly from their televisions.

OLED TVs offer an ideal combination of high-quality visuals and seamless integration with smart features, making them a popular choice for consumers.

Looking ahead, LG Hungary says it is focused on exploring new ways to harness OLED technology, such as incorporating it into transparent, flexible, and rollable displays. These innovations could significantly impact industries beyond television, such as automotive, aerospace, and digital signage.

PRESENTED CONTENT

MAP: A Useful Tool to Settle International Tax Disputes In recent years, there have been significant changes in international taxation, transforming the mindset of both the tax authorities and private actors, whether companies or private persons, doing business at the international level. Just think of the BEPS project, the GloBE project, or, more recently, the termination of the U.S.-Hungarian double tax treaty.

ZOLTÁN PAUKER

If we accept that the purpose of the above projects is to prevent the erosion of tax revenues for the state and imagine what entrepreneurs face in cross-border transactions on a day-to-day basis, it becomes apparent that these entrepreneurs will or already have been challenged by foreign tax authorities.

As a result, it is vital to know what tools we can apply to defend our position and avoid double taxation. Below, we briefly summarize the most important rules of those procedures available for Hungarian taxable persons.

Mutual Agreement Procedure In Hungary, three mutual agreement procedures (or MAPs) are available for Hungarian taxable persons.

phase). The complaint can also be submitted to the foreign jurisdiction if the conditions are met.

A period of two years is set aside to resolve the dispute. If that proves impossible, it will be forwarded to the arbitration tribunal.

EU MAP

This procedure is the so-called European Union MAP. It is worth applying in those situations where the opposing state is a member of the European Union.

In all three, disputes are raised The procedure has three phases: because of different interpretations evaluation of the submitted complaint, of the double tax treaty in force, negotiation with the foreign authority, which leads to double taxation. and dispute resolution by the Advisory As a principal rule, procedures may Commission (if the dispute cannot be be initiated before the Ministry of settled in the second phase).

Finance provided that three years have As a rule of thumb, the complaint not passed between the disputed first should be filed not just with the Ministry instance resolution of the foreign tax Zoltán Pauker, senior manager, of Finance but also with the opposing authority and the request submission.

Andersen Adótanácsadó Zrt. foreign authority (small and mediumThe Classical MAP sized enterprises and private persons The first procedure available for taxable have the right to submit their complaint Arbitration Procedure persons is the so-called classical MAP to the Ministry of Finance only).

This procedure aims to settle disputes and is based on the given double tax Should the taxable person take deriving from different interpretations of steps to challenge the disputed treaty. It is worth applying in those the transfer pricing clause of the given situations where the opposing state is decision domestically, the third phase double tax treaty. The arbitration procedure not a member of the European Union. (dispute resolution by the Advisory The procedure has two phases: evaluating can be applied should the opposing state Commission) cannot be initiated. be a member of the European Union. the submitted complaint and negotiating The procedure has three phases: with the foreign authority. It is important to note that the ministry cannot reject the evaluation of the submitted complaint, negotiation with the foreign authority, complaint on the ground that the taxable person has taken legal steps in the foreign and the arbitration procedure (if the country to challenge the disputed resolution. dispute cannot be settled in the second

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Business

As Green Loans Surge, MNB Launches Room for Improvement Eco-Friendly Product Finder

The National Bank of Hungary (MNB) has published a report on the state of green finance in the country, highlighting the robust growth of climate-friendly loans and announcing the launch of a green financial product finder tool.

GERGELY HERPAI

The report, “Green Finance in Hungary 2022,” was presented at a press conference on April 26 by MNB deputy governor Norbert Holczinger and director of sustainable finance Zoltán Kocsis.

According to the report, so-called green loans, which support projects or activities with positive environmental or climate impacts, increased by 46% in 2022, reaching HUF 1.4 trillion (EUR 3.9 billion) by the end of the year. This accounted for 5.6% of total loans in Hungary, up from 4.2% in 2021.

The report also revealed that green bonds, which are debt instruments that raise funds for environmentally friendly projects or activities, grew by 28% in 2022, reaching HUF 1.1 tln (EUR 3.1 bln) by the end of the year.

That represented 7.4% of total bonds in Hungary, up from 6.4% in 2021.

The MNB said these figures show that Hungary is on track to meet its targets under the National

as an opportunity for innovation and development in the Hungarian financial sector,” he explained.

“We are proud of our achievements so far, but we also recognize that there is still room for improvement and further action.

One of the main challenges we face is the lack of reliable and comparable data on environmental performance, which hampers the development of green finance products and services,” Holczinger warned.

“That is why we have launched a new online tool, the green financial product finder, which will help consumers and businesses find the best green financial products for their needs,” he added.

“One of the main challenges we face is the lack of reliable and comparable data on environmental performance, which hampers the development MNB deputy governor Norbert Holczinger (right) of green finance products and director of sustainable finance Zoltán Kocsis. and services. That is why we have launched other environmental challenges pose […] the green financial Energy and Climate Plan (NECP) submitted to the EU, under which it aims significant ecological, economic, product finder, which and social risks for Hungary and to reduce greenhouse gas emissions will help consumers by the world. The report warns that, without adequate action, these and businesses find the risks could negatively impact growth, best green financial by 2030 compared to 1990 levels and competitiveness, employment, achieve climate neutrality by 2050. inflation, financial stability products for their needs.”

40%

To support the development of green finance further in Hungary, the MNB announced the launch of a green financial product finder, which is available on its website.

The tool allows users to search for and compare various green financial products offered by banks and other financial institutions in Hungary, such as loans, mortgages, deposits, funds, insurance and pensions.

It also provides information on the environmental or climate benefits of each product, as well as the criteria and standards used to define them as green.

Increasing Transparency

The MNB said that the search function aims to increase the transparency and awareness of green finance among consumers and investors and to encourage financial institutions to offer more and better green products.

“Green Finance in Hungary 2022” also emphasizes the urgency of accelerating the transition to a green economy, as climate change and

and public health.

The central bank calls for more cooperation and coordination among all stakeholders, including the government, private sector, civic society, and the international community, to implement effective policies and measures to mitigate and adapt to climate change.

The MNB also stresses the importance of increasing the financial literacy and awareness of consumers and businesses on environmental sustainability issues, as well as providing them with adequate incentives and information to make green choices.

“The MNB’s Green Program is not only a social responsibility initiative but also a strategic priority for our monetary policy and financial stability objectives,” Holczinger, the head of the national bank’s sustainable finance department as well as deputy governor, told the press conference.

“We believe that green finance can help us achieve our inflation target, reduce systemic risks, and support economic growth and competitiveness.

We also see green finance

Despite the positive developments in green finance in Hungary, some challenges and barriers still need to be overcome to achieve a more sustainable financial system. One of the most significant is the lack of common definitions and standards for green finance products and activities.

The MNB has proposed a taxonomy for green loans based on international best practices, but it is not yet mandatory for banks to use it. The EU taxonomy regulation is expected to provide more clarity and harmonization in this regard.

Another challenge is the low level of awareness and demand for green finance among customers and investors.

The MNB has conducted several surveys and studies to assess the attitudes and preferences of various market segments toward green finance. The results show a need for more education and information on the benefits and opportunities of green finance, as well as on the risks associated with climate change and environmental degradation.

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Finance Matters A biweekly look at f inancial issues in Hungar y and the region Photo by Westlight / Shutterstock.com

Are 10 Years of Inflation on the Cards? Some Food for Thought Les Nemethy has been warning that we were facing a period of high inflation since long before it was fashionable. Now, he believes that on the balance of probability, we face an entire decade of high inflation.

That’s not to say that inflation cannot decrease at times during the decade, during a recession, for example. In the 1970s there were ups and downs; overall, it was still one of the most inflationary decades on record.

In the first part of this article, I will briefly summarize my reasons for my “decade of inflation” prognosis.

In the second part, I will offer evidence that inflation is not accidental but a deliberate act of government theft.

Then I’ll offer some conclusions.

This summary does not purport to be comprehensive, but it does lay out five of the great inflationary structural changes in the world today.

1) Deglobalization: Factories are no longer built where factor costs are optimized; supply chain security has become a much more significant consideration. This inevitably results in higher prices, as do interruptions to supply lines and the need to stock more inventory.

2) Demographics: A demographic implosion makes the workforce more scarce, putting upward pressure on labor costs.

3) Green Energy: Put simply, it is more expensive than fossil energy.

The more we substitute fossil fuels with green energy, the more it drives up energy costs. A dearth of green energy minerals will further drive up energy costs. Policy shifts towards green energy have made fossil fuel providers reluctant to invest in expanding or even replacing fossil fuel capacity for fear of being left with stranded assets; hence, fossil fuel prices are also driven up.

4) War Economy: Just as the United States tried to achieve “guns and butter” in the late 1960s and 70s (the Viet Nam war and Johnson’s “Great Society”), so too,

governments today are spending lavishly on everything from COVID relief to social security, while the Ukraine war (and other conflicts or threatened conflicts) are increasing military spending. An expanded money supply funds deficit financing.

5) Government Bank Loan Guarantees: These are experiencing surprising growth on both sides of the Atlantic, encouraging banks to lend more, once again fuelling growth in money supply and inflation.

In defense of the proposition that inflation is not accidental, but a deliberate act of theft, I offer the thoughts of several great thinkers.

These are some of my favorite quotes on inflation: J.M. Keynes: “By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of its citizens.”

Ludwig von Mises: “The most important thing is to understand that inflation is not an act of God, it is not a natural disaster, and it is not a disease. Inflation is a political strategy.”

Friedrich A. Hayek: “I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments.”

Warren Buffet: “Most of those in political office, quite understandably, are firmly against inflation and firmly in favor of policies producing it.”

Ernest Hemingway: “The first panacea of a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.”

William Ophuls, author of “Immoderate Greatness: Why Civilizations Fail.”: “Inflation is always an evasion of reality, an attempt to maintain an artificial prosperity. [ …. Leaders] have been backed into a corner by events and lack the moral courage or the political support to institute fundamental reforms, which would require them to inflict pain on the mass of commoners and vanquish powerful elites [...] [R]ulers bereft of backbone, ingenuity, and capital attempt to postpone the impending crisis by inflating.”

Ayn Rand: “Inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by the fiscal policies of statist governments.”

Ludwig von Mises: “Inflation, however, can only continue as long as there is the opinion that it will cease in the foreseeable future. Once the conviction is established that inflation will not stop, panic breaks out.”

In conclusion, I might add that probably the only politically palatable way that politicians can make our debt levels more manageable again is to inflate them away by keeping the inflation rate a few percentage points higher than the interest rate.

Given that we are facing the highest amount of debt ever accumulated by humanity, some 370% of global GDP, there will be very little option but to inflate it away. Perhaps this is even the responsible course of action.

Les Nemethy is CEO of EuroPhoenix Financial Advisers Ltd. (www.europhoenix.com), a Central European corporate finance firm. He is a former World Banker, author of Business Exit Planning (www. businessexitplanningbook.com), and a previous president of the American Chamber of Commerce in Hungary.

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Business | 9

Gloster Founder Hails ‘Milestone’ Year for IT Firm Gloster Infokommunikációs Nyrt., the Budapest Stock Exchange-listed IT specialist, closed what it called its “most successful business year” in 2022, with a 27% increase in revenue and a 19% increase in EBITDA. The company’s international software development division showed marked growth thanks to three acquisitions.

GERGELY HERPAI

Despite challenging macroeconomic conditions, Gloster’s revenue reached a record HUF 6.349 billion in 2022, driven by a 78% growth in international, euro-based revenue. As a result, this segment now constitutes nearly onethird of the company’s total revenue.

Its continuous performance contracts also showed a 54% increase in regular income compared to 2021, indicating a positive trajectory amid current macroeconomic challenges.

Commenting on the company’s achievements in 2022, Gloster’s founder and chairman Viktor Szekeres told a press conference, “This year was a milestone for Gloster Group, as our international growth laid a crucial cornerstone for our 2025 growth strategy.”

He added that the company is financially stable and continues to actively search for acquisition targets that could further strengthen its profitability and international presence.

Szekeres also highlighted Gloster’s plans to move into the Budapest Stock Exchange’s Standard category, reflecting the company’s ambition

Gloster’s founder and chairman Viktor Szekeres, left, presents facts and figures from a “milestone” year. to enhance its visibility, market position, and investor confidence.

As part of this transition, Gloster must meet requirements such as increased transparency, improved corporate governance, and a more diversified shareholder structure.

This move will also provide the company a platform to attract additional investment for future growth and acquisitions.

Driving Force

In 2022, Gloster’s international software development business was the driving force behind the firm’s growth, contributing 37.8% of total revenue and becoming the most significant division within the group.

That success was built upon three acquisitions completed last year.

Among these, the purchase of a 51% stake in the Germany-based G-Plus Consulting GmbH marked a milestone in the company’s operations, providing Gloster with direct access to the German market and enabling it to become an IT supplier for major German car manufacturers without intermediaries.

Revenue for the international software development division increased by 113% year-on-year, making it the most significant contributor to Gloster’s bottom line. These results align with the firm’s vision of creating a world-class IT ecosystem to satisfy the demands of IT service providers in the international market, particularly in the Germanspeaking DACH (Germany, Austria and Switzerland) region, relying on the expertise of local engineers.

Strategic acquisitions in 2022 also included two Hungary-based companies with an international

market presence. In May, Gloster acquired a 54% stake in fintech design and development company ff.next. The latter firm has designed and implemented design-driven digital financial solutions for more than 10 financial institutions and 20 fintech companies, ranging from Singapore and the DACH region to Australia, the Middle East, and the United Kingdom.

Gloster also acquired a 60% stake in the Pécs-based Lanoga Kft., which operates in both the Hungarian and European private healthcare IT markets, in December 2022. This purchase broadened Gloster’s portfolio with a new market perspective and further solidified its international presence.

Thanks to a combination of acquisitions and organic growth, the workforce increased by 56%, reaching 202 employees by the end of 2022. The company now has offices in five Hungarian cities, including Budapest, Szeged, Kecskemét, Pécs, and Nagytarcsa.

The international software development division stands out in this regard, accounting for more than 60% of the company’s total workforce.

2023: Further Expansion

This year’s focus remains on further expanding its international presence, primarily in the DACH region, and continuing its growth trajectory in the software development sector. Gloster says it plans to leverage its recent acquisitions and existing partnerships to secure more significant contracts with major European and international clients.

Moreover, the firm says it will enhance its expertise in emerging technologies such as artificial

intelligence, machine learning, and blockchain, enabling it to stay at the forefront of industry trends and provide cutting-edge solutions to its clients.

Another priority in 2023 is nurturing and retaining its highly skilled workforce, which is critical to the company’s success. Gloster will continue to invest in employee training and development programs, creating a “dynamic work environment that fosters innovation and collaboration.”

“This year was a milestone for Gloster Group, as our international growth laid a crucial cornerstone for our 2025 growth strategy.”

The firm argues its success in the international market not only benefits the company but also has a positive impact on the Hungarian IT landscape.

By creating job opportunities, fostering innovation, and enhancing the country’s reputation as a technology hub, Gloster says it contributes to the growth and development of the local IT industry.

The listed firm’s commitment to providing world-class IT solutions and its ambitious growth strategy has positioned the company as a prominent player in the global IT market, Szekeres says. With its record-breaking performance in 2022 and its focus on continued expansion, Gloster believes it is well on its way to achieving its vision of becoming a leading IT service provider in the international market.

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Budapest Business Journal | May 5 – May 18, 2023

Weak Economic Prospects May be Temporary, DUIHK Survey Reveals

According to Wölfer, Hungary still has the third lowest wage costs in the EU, meaning its cost advantage for exporting companies in particular will continue to exist for some time, even with solid wage growth.

Satisfaction Downturn

Despite a weak economic outlook in the short term, companies intend to continue investing and increasing headcount, according to the latest business climate report by the GermanHungarian Chamber of Industry and Commerce (DUIHK). However, the survey found lower satisfaction levels with the overall business environment than last year.

The DUIHK survey regularly evaluates the companies’ assessment of the quality of the investment environment in Hungary. To this end, the DUIHK also measures satisfaction through 20 factors that are decisive for daily operations and future investment decisions. For practically all of these factors, this year’s poll shows a slight downturn compared to 2022.

In Hungary, foreign investors generate nearly half of all corporate GDP. In the automotive sector, almost two-thirds of the value added is generated

by German companies.

While labor market-related conditions are still viewed as appropriate by most survey participants, a 10-year-long trend of improving satisfaction with the economic policy framework came Communications director Dirk Wölfer (left) and to a halt this year. president András Sávos present the findings from Among other areas, approval the DUIHK’s 2023 economic satisfaction survey. declined with the tax system (last year’s windfall taxes certainly played a role here) and the predictability of for large, export-oriented industrial economic policy, which most likely investment climate. Unsurprisingly, reflects state interference in market the companies’ evaluations also reflected companies. DUIHK president András Sávos (whose daytime job is as vice mechanisms, such as administrative uncertainties in the Hungarian and president and head of digitalization and price regulations or intervention in European economies. process optimization at Knorr-Bremse foreign trade, the report states.

The current situation of the national AG) interpreted this as evidence that One of the critical figures to see economy was described as “significantly companies see the current economic a fall is the ratio of those who would worse” than in spring 2022, and the downturn as temporary. choose Hungary as an investment outlook for the next Nevertheless, DUIHK’s report location again. This dropped noticeably to states that there are still challenges months ahead. Energy prices continue to top is also seen as fairly weak: One in the list, followed by the shortage of in this year’s survey, following record two companies expect the situation to skilled workers and exchange rate risks. levels of 88% in the past two years. deteriorate, while only 13% expect it to However, the first two, in particular, Some countries in the region see improve. However, this ratio is already are also evident to a similar extent in scores of 90% or more when asked this noticeably better than last fall, when many other countries in the Central question, so there is a need for action companies were shocked by the energy and Eastern European region, where here, the chamber notes. crisis, which had just peaked at that time. the various local German chambers DUIHK’s “Investment Climate Companies usually judge their own conducted parallel surveys.

Index,” calculated annually based on business prospects better than those The survey in Hungary devoted the survey results, fell this year from of the general economy, DUIHK said. considerable attention to the labor six to two points (on a scale of -100 to This proved true in the current survey market. In addition to the workforce +100). As the index has reliably tracked again, although at a marginal level: shortage, which has been a burden Hungary’s economic performance the share of companies with a positive to companies for the last six or seven in the past years, the latest value outlook equaled those with negative years, it also focused on labor costs. confirms many forecasts expecting expectations. The last time the ratio was Fueled by high inflation and GDP growth of between 0-2% this this negative was 10 years ago. the shortage of qualified personnel, year, DUIHK argues. survey participants expect their labor costs to rise by

12

BENCE GAÁL

At the presentation of the results at the end of June, DUIHK communications director Dirk Wölfer presented some data on the relevance of foreign investments for both countries. For Germany, foreign direct investment in the 11 “new” EU-member states in Eastern Europe was higher than German FDI in China.

Some 16% (one-sixth) of total German exports are absorbed by these countries, compared to just 8% for China. In Hungary, foreign investors generate nearly half of all corporate GDP, 14% alone are linked to German investors. In the automotive sector, almost two-thirds of the value added is generated by German companies, with the remaining one-third coming from other foreign investors.

About 250 executives of DUIHK member companies and some other foreign chambers in Hungary again voiced their views on the country’s economic situation and overall

Investments and job Creation

On the other hand, despite this gloomy outlook, investment and employment intentions continued to show a positive balance and were even somewhat stronger than a year ago. According to the survey, this is particularly true

79%

almost

15%

this year. This is significantly more than in the simultaneous surveys in Poland, the Czech Republic, and Slovakia, for example, where the wage increase is “only” estimated at 8-10%.

The complete report can be downloaded in full from the DUIHK website in German and Hungarian at: ahkungarn.hu/konjunktur

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Budapest Business Journal | May 5 – May 18, 2023

Special Report Real Estate: Offices

This Budapest Business Journal’s Office Special Report examines the Budapest market from the perspective of the issues facing developers and office building owners regarding planning, financing, development, redevelopment, letting, property and facility management, and the exit strategy for a building.

GARY J. MORRELL

The office market faces challenges around demand and take-up, changing specifications from tenants and staff, and the need for well-being provision in the workplace. There are also concerns over investment liquidity and the availability of suitable development plots at transport hubs reasonably near residential areas.

In all stages of the office development cycle, designers, consultants, architects, lenders, tenants, FM and PM providers, developers and investors must adhere to a combination of market forces and increasingly stringent ESG regulations.

Image by Elnur / Shutterstock.com

Market Talk: Questions Around Supply and Demand but ESG Grows in Significance

These elements, in addition to rising utility costs and the necessity of making the provision of services more sustainable, could increase office operating costs. However, sustainability consultants and PM and FM firms argue that it will be cheaper in the longer term while also adhering to developing ESG regulations.

Despite these challenges, there is a relatively healthy development pipeline, though it is an active question whether there is enough to meet demand. Market and ESG pressures are producing higher quality, more efficient, and better-located office developments that help improve the city’s overall infrastructure.

In our experience, office demand is ever-increasing for several reasons, such as the ambition to decrease operational expenses by upgrading to an environmentally conscious building or simply because companies are just finding the right way to

work in the office after facing the challenges of creating home office policies and adjusting to hybrid forms of working. I firmly believe that the time has finally come to make up for the rash decisions some occupiers, unfortunately, were forced to take during the most intense period of the pandemic. Lease renewals signed in 2020 are now being reviewed and remedied to suit the companies’ needs better and support them with a more mature real estate approach.

Unlike in the 2008 financial crisis and despite all the hardships that the commercial real estate sector had to overcome in the past few years on a global and local scale, there is available capital to deploy; therefore, we anticipate some office investment transactions in the second half of the year. There is a constant demand for value-add investment products amongst the more opportunistic buyers. However, core grade “A” sustainable offices are still

likely to be considered due to the spread of EU taxonomy norms and the everincreasing demand for ESG compliance among occupiers, developers, investors, and generally across the business world.

Máté Galambos Leasing manager Atenor Hungary The first quarter in the investment market in Hungary was very quiet, with less than EUR 100 million transacted and only one small office transaction taking place. The period before summer is expected to remain subdued with high inflation and, with rising interest rates, the availability of finance is tight.

The market perception gap between vendors and buyers remains, and the majority of European markets are quiet, with the exception of Poland and Ireland, which are probably the most liquid investment markets currently.

Nobody has a definite idea of how long this quiet period will continue.

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Special Report

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Budapest Business Journal | May 5 – May 18, 2023

segment in the upcoming 18-24 months.

We see that occupiers are reluctant to secure long-term leases or expand their businesses in the current economic situation.

There is increasing demand for environmentally conscious buildings and office space (and landlords) as the tenants themselves will soon require an ESG rating to access green financing vehicles. The ratio of those tenants who include ESG solutions as part of the office selection criteria is around 15% today, but this ratio will grow very fast in the near future.

New and renovated space needs to provide access and amenities for disabled people, spaces enhancing

companies and office building owners are concentrating on providing a wide range of services, flexible space, reasonable operating costs, and environmental aspects simultaneously.

At Frame Group, a professional FM provider, we help our partners find the best and most cost-effective way to achieve this goal. It is never too late to adapt and optimize, but we encourage investors and architects to consult with us before planning to maximize the benefit potential.

Owners and investors are under higher pressure to gain certificates to prove how their buildings are prepared and equipped and that related processes are correctly aligned. We expect a rapidly increasing demand for renewable energy

Máté Galambos

Gábor Décsi

Although there is little transactional evidence, prime Budapest office yields can be estimated at 5.75-6%.

When you think the cash flow burden on the debt would stand at 6-7.5% (including amortization) in case of gearing on a prime asset, you realize we are definitely in a cash buyer market.

So far, the Budapest office fundamentals remain solid with take-up activity holding (similar to Prague). We see particularly strong activity in the tech sector. This is reassuring. Due to the ownership structure of the logistics market (with a few strong developer/ manager platforms not trading out), and the concerns over the retail sector (with the exception of strip malls), the office segment remains the backbone of investment activity on the Hungarian markets. If offices are not trading, volumes will be significantly down.

Benjamin Perez-Ellischewitz Principal Avison Young Hungary

in many cases, strategic partners for landlords and large building users.

I believe in the future of technology.

Our FM industry is labor-intensive, so the robotization potential is extremely high. Autonomous industrial cleaning robots are already on duty, but many more applications are already in the early adaptation phase. In our business flow, the number of documents is also very intense. There are already high-scale automation solutions available that can reduce human interaction needs.

There is a saying: “What you can measure can be controlled.”

The management and control of the building operation and facility management become more crucial to reaching the lowest energy consumption and the highest employee satisfaction.

Gábor Décsi CEO Dome Facility Services Group

CPI Hungary predicts a challenging market situation in the Budapest office

Mátyás Gereben

Benjamin Perez-Ellischewitz work-life balance (gym, massage room, etc.), and an increased volume of common social areas where informal collaboration can occur.

Refurbishing existing buildings is undoubtedly an attractive development option. From an economic and sustainability point of view, redevelopment is a viable investment for landlords. A welllocated renovated office building can be worth nearly as much as a new one.

I suspect moderate demand from international investors in the next 24 months. Domestic money will still be available below the EUR 20 mln ticket size. Other regions in CEE will recover faster.

Mátyás Gereben Country manager CPI Hungary In the name of the FM market, I would say both ESG and Well certification viewpoints have already opened new perspectives, and in the coming years, they will emerge even more. In the provision of the basic work environment, this means reaching the most optimal energy consumption and saving requires core FM competencies. FM experts and service providers have become at least tactical partners and,

During the past few years, the wellbeing and loyalty of co-workers have become a key focus area. Many

László Orbán

Zsombor Barta solutions; therefore, we are prepared to design and deliver complex solar systems for our clients. On the other hand, we are extending our fit-out and construction teams because we trust these trends will soon cascade down, reaching class “B” premises too.

László Orbán Group CEO Frame Group ESG standard offices will not be more expensive, as these spaces are simply better managed, and hopefully, they have a lower impact on sustainability (through well-managed systems, energy consumption, and so on). This alone will not increase costs. The implementation of ESG-related features and systems will decrease costs. Further, these spaces will also be core attractions for investors, tenants, and other stakeholders.

ESG benchmarking is currently coming to the Budapest office stock.

There are already a few buildings that were assessed against ESG standards, but I would expect that a more significant ESG boom will arrive in the Hungarian market during 2023 and 2024. It is clear that investors, financing institutes, and tenants require ever more ESG compliance; therefore, this requirement will push the whole market firmly towards ESG benchmarking.

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Budapest Business Journal | May 5 – May 18, 2023

Róbert Flück It is expected that ESG benchmarking will be harmonized and standardized for the commercial building sector. Currently, there are many ESG standards and methodologies available on the market.

Zsombor Barta President of the Hungarian Green Building Council (HuGBC) Founding partner at Greenbors Consulting

At Icon, facility and property management services are in one hand, which is not common in the real estate market; however, the feedback from our clients shows that this is an effective way of managing a property. The synergies of the two areas (property and facility management) at Icon can be effectively used and taken advantage of in the case of ESG strategies.

The Corvin 5 Well-certified office building is an excellent example of this, where Icon provides both property and facility management.

How an office is built and what technological solutions are applied have a smaller part in how efficient and environmentally friendly it is.

What is more important from this perspective is how the building is operated daily: for example, what settings are applied on the machinery, quick reaction to changes and problems, as well as the education of tenants.

For landlords, the main priority is the return on investment, which can only be achieved if the office building is well-utilized and longterm lease contracts ensure its occupancy for years in advance.

As for tenants, the top priority is efficient operation, market-level rents, and energy costs. Given the low unemployment rate, how ESG standards are met at the office of the

Dömötör Károly Makk given company is often an important aspect in acquiring and retaining employees, especially for the young.

Róbert Flück FM director Icon Real Estate Management The Budapest office market reacted to the total removal of COVID restrictions, and leasing activity reached 400,000

Special Report | 13 sqm of office space in 2022, a slight increase compared to 2021 and a more significant one compared to 2020. This increased demand might decline slightly in 2023, but we expect demand for “A+” category sustainable offices to remain stable.

The market has a couple of principal driving factors due to the last few years’ COVID-homeoffice effect that will remain.

First, some tenants will reduce their office space requirements, as employees will continue working in hybrid mode, resulting in fewer workstations. Another factor is the increased utility prices, resulting in multiplied service charges in inefficient buildings. Eventually, companies will relocate to new “A” or “A+” category buildings to control their operational costs and provide an attractive working environment for their employees.

In the short-term, moving to an ESG office is a higher financial investment for firms than staying in their original “B” category offices, but in the long-term, moving to an ESG-compliant office will always pay off; every firm will face much lower energy bills, and avoid the need to meet renovation costs or the expense of replacing outdated technologies.

Dömötör Károly Makk Head of leasing TriGranit

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Special Report

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Uncertainty Seen Across Central European Markets Total supply in the Budapest office market has reached 4.3 million sqm, 3.5 million sqm of which is speculative space. Vacancy stands at 12.5%, according to Cushman & Wakefield. Seven office projects are expected to deliver in the next 12 months, including the 29,500 sqm Liberty

by Wing, the 16,600 sqm first phase of Bakerstreet, the 15,000 sqm RoseVille by Atenor, the 11,000 sqm BudaPart Downtown by Property Market, the 14,000 sqm Madarász IV, and the 12,800 sqm F99 by Proform.

GARY J. MORRELL

That stock level means the Budapest office market is now the second largest in the CEE region after Warsaw.

Development is subdued across the major Central European markets as developers are reluctant to undertake new projects given the background of more expensive debt finance, rising PM and maintenance costs, and uncertainty over demand levels. There is a growing gap between ESG-compliant and non-ESG-compliant space in all markets, with markedly increasing demand for the former.

Prices will be much higher, and there will be a supply gap in the office market in Warsaw, according to many analysts.

This will be most visible in 2023 and 2024. Last year, there was only 160,000 sqm of office space under construction on the Warsaw market, compared to more than 800,000 sqm in 2019.

In 2023, Warsaw office space will increase by only circa 65,000 sqm, according to Avison Young Warsaw.

Total modern office stock in Warsaw has reached 6.4 million sqm, according to the Polish Chamber of Commercial Real Estate (Pink). Vacancy in Warsaw currently stands at 11.6%.

office stock in the eight major cities combined has now surpassed that of Warsaw, with Krakow and Wroclaw seen as the core provincial markets. There is currently 600,000 sqm of space under construction away from the Polish capital, according to JLL Total supply in the Prague office market has reached 3.85 million sqm, according to the Prague Research Forum, consisting of CBRE, Colliers, Cushman & Wakefield, Frank Knight, JLL, and Savills.

From this stock, 74% is class “A” and 17% is “AAA”-rated.

The market has seen a significant Artist’s rendering of the first fall in new supply compared phase of the Bakerstreet to the pre-pandemic era, with office project in Budapest. only one or two projects expected to commence in 2023, according to Cushman & Wakefield. Vacancy stands at 7.5%. As of Q1 of this year, “After the project supply gap over 145,000 sqm was under construction, the next two years, there could be with 90,000 sqm of space in nine a significant increase in activity from office projects expected to deliver developers who have prepared large during the year. pipelines for 2025-2026. There may In all Central European office be a risk of a transition from undersupply markets, the challenge for the year to oversupply,” Pink says. ahead is seen as the wider economic Thriving Provincial Markets environment, hybrid working habits, A notable feature of the Polish office development costs, and the demand scene are the thriving markets away for ever more highly specified ESG from the capital. The size of modern standard space from tenants.

PRESENTED CONTENT

TriGranit: Building Climate-smart Solutions Károly Dömötör Makk, head of leasing for TriGranit, talks with the Budapest Business Journal about its Millennium Gardens development and the growing importance of ESG. BBJ STAFF

BBJ: Phase I of Millennium Gardens officially opened on September 29, 2022. Where are you with the second phase now?

Károly Dömötör Makk: The second phase is currently under construction; our goal is to hand it over at the end of the first quarter of 2024. So far, everything is on schedule; we do not expect any delay in the handover.

BBJ: Is phase I fully occupied, and do you have any pre-lets for phase II? KDM: The current occupancy rate of the first phase is 95%, while the second phase is waiting for its future tenants, but we are in advanced negotiations with potential tenants for about 50% of the building.

BBJ: You described phase I as “an exemplary showcase of ESG development practices.” Will phase II match it or go even further?

KDM: The second phase will match all the ESG criteria of the first phase, with some differences in terms of individual

tenant need and fit-out designs.

Still, the principal green solutions (for example, heating provided by heat pumps, motion-sensing LED light sources that allow tenants to avoid energy waste, intelligent building management systems, energy-efficient elevators and air conditioning, water-saving faucets and shower heads) will be the same.

BBJ: How does developing to such a high level of ESG change the mix of tenants you can attract?

KDM: The real estate and construction sector accounts for about 40% of greenhouse gas emissions globally, with 28% attributable to the daily operation of buildings alone. Buildings also affect the health and well-being of their tenants and the communities within which they are embedded. Pursuing positive impacts in this space will create value and attract ESG-conscious tenants. In the past, meeting ESG requirements were seen as “nice to have,” but now, given strict ESG requirements and changing government policy, this will need to be treated as a priority.

Károly Dömötör Makk Tenants (not only multinational giants but also local SMEs) are now actively, sometimes exclusively, seeking spaces that are certified accordingly and offer a place where employees are happy to work to enhance their employer attractiveness.

According to a PwC survey, almost 90% of employees preferred to support or work for companies that cared about the same ESG issues they do. To support this sentiment further, a recently published report states that, by the end of this decade, the Millennial and Gen Z generations will constitute more than two-thirds of the world’s workforce.

These generations place a greater emphasis on social and environmental concerns than their predecessors, and they will expect more from their employers on these issues. Meanwhile, the price of not caring about ESG just got higher. In France, for instance, the décret tertiaire will start applying fines to those companies not taking action to apply carbon-cutting initiatives. In the United States, the price tag for non-adherence is also increasing, with one firm receiving a fine of almost USD 10 million for misrepresenting their environmental compliance. Evading these penalties requires the creation of an immediate ESG action plan.

At TriGranit, we offer our tenants more climate-smart solutions that will advance their climate (and ESG) efforts as well as our own.

BBJ: Beyond ESG, what are the latest trends for the office market?

KDM: Although leasing activity across Europe held up reasonably well in 2022, there is a widespread consensus that a recession will lead to declining occupancies, even in previously robust sectors. On the other hand, the office employment environment offers a competitive advantage for the economy of Budapest compared to many of its peers in CEE. Global firms in finance, insurance, accounting, and business consultancy provide these jobs, and the pandemic has hardly restrained the ICT industry, which has become the city’s largest sector. The surge in office employment in Budapest was the strongest in the region since 2015, and this trend is expected to continue.

3

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3rd-party Accreditation Setting the Standards for Office Interiors Office interiors are now an intrinsic part of the project concept, design, leasing strategy, and property and facility management of building developments.

That comes in reaction to tenant (and, in turn, staff) demands and increasingly stringent ESG national and EU environmental regulations.

GARY J. MORRELL

The design, development, and PM and FM of offices increasingly align with third-party sustainability accreditation organizations. That means they must consider the office environment, layout and design, the provision of amenities, and the internal atmosphere.

The perceived well-being of staff is seen as aiding employee retention and boosting productivity.

“The tools attracting employees back to the office include the design of the office interior and the variety of services offered. At GTC, we believe that landlords also have the responsibility and opportunity to influence our tenants when designing office interiors,” comments Zsolt Berényi, development director at GTC Hungary, reflecting the point of view of a developer.

“In this regard, the market needs a change of perspective. We, as landlords, must take an active role in supporting our tenants during the design of the office interior, to create a more liveable office environment. With this, we help their employees to return to the offices. We also believe in the power of community, for which the interior of the office is fundamentally important,” he adds.

This can be seen as a combination of market pressure, sustainability regulations, and tenant expectations exerting influence on developers and building owners to meet the demands of tenants and staff. From the tenant

Special Report | 15 comments Regina Kurucz, an architect and assessor for the accreditation system.

“According to my view, a big challenge will be to convince office managers of the need for quiet spaces for relaxation and private phone calls. Relaxing areas help to reduce stress and improve work quality,” she explains.

“The Well Building Standard can help companies attract and keep the best workforce. I think this is an invaluable accomplishment when it is scarce,” Kurucz adds.

Energy Upgrades

Berényi of GTC Hungary sees the redevelopment and energy upgrade of existing office buildings as essential.

“It is probably more difficult, as the tenants are actively using the buildings during the refurbishment works. Through the refurbishment and energy upgrade of an existing building, we are repositioning it and making it more competitive in the office market,” He says.

“As the result of the refurbishment works, the buildings can improve their green or ESG qualifications and reduce costs for the tenants. We are highly improving the energy efficiency of our office buildings with significant technical An interior view at H2Offices in Budapest by developer Skanska. improvements at Centerpoint, Váci Greens D, and Duna Tower. Our goal is to make the operating and energy costs of our buildings predictable and fitness classes in the office that can perspective, Valter Kalaus, managing calculable for our tenants,” Berényi notes. be projected via Zoom to employees that partner at Newmark VLK Hungary, Development plans in the office market are working remotely,” Makk adds. argues that tenants require flexibility. have been cooled down by elevated and Sustainability accreditation from an “Some of the leased space should be unstable construction costs and high independent, third-party sustainability devoted to multiple functions. This financing costs, but that does not mean organization such as the U.K.-based requires more mobile furniture and there is no activity out there, industry Breeam or the U.S.-based Leed and, supporting infrastructure. Further, players insist. increasingly, Well, have a range of the initial layout should be variable to “The demand for attractive office space requirements regarding interiors. These minimize the costs of future changes. is very high. Employers, wanting to are now increasingly the norm for a Amenities should involve outdoor motivate teams to return to the office, development and a basic expectation for facilities such as an internal garden, tenants, staff, and investors at the higher arrange increasingly interesting and fitness corner, and even sun beds or friendly workspaces. In turn, companies end of the Hungarian office market. quiet rooms for relaxing,” he says. can look at whether there is a plan to In Budapest, five office buildings Fractured old Models reduce maintenance fees in the building are Well “Core”-certified, representing The pandemic has fractured old where they decide to locate their office,” almost 100,000 sqm of space. A further operating models, and new habits argues Avison Young. have appeared, particularly with “They [companies] can analyze the the comprehensive adoption of landlord’s ideas for reducing the service is Well “pre-certified,” Well home office. Firms have recently prices that make up the operating “Health-Safety Rated,” or enrolled started carefully appraising their costs. This is a very important issue, for in the Well program. opportunities for upgrading their owners and tenants, in the context of the “Compared to the four million sqm of buildings to create desirable places economic changes we face. Both parties modern space in the Hungarian capital, for returning employees. These should openly communicate on this this is a remarkable rate, taking into workplaces have to be outstandingly issue to be aware of, and convinced, that consideration that the Well Building convenient and sustainable, giving a all expenses are economically justified,” Standard is not yet 10 years old,” superior working experience to gain concludes the commercial real estate firm. engagement of employees, while ADVERTISEMENT at the same time lowering costs, according to Károly Dömötör Makk, head of leasing at TriGranit.

TERRAPARK C + D “The office is now shifting from a variety of space types to a collaborative, ADDRESS: 2040 Budaörs, Liget utca 3/2. hospitality-driven environment; BUILDING YEAR: C Block 2008; buildings that satisfy the need D Block 1995-2000 for human connection will have a PUBLIC TRANSPORT: Bus 40, 140, competitive advantage. The office needs 240, 88, 188, 287, not only to prioritize safety, health, and Terrapark shuttle bus comfort as a foundation but also support CONTACT: overall well-being by reducing stress Tel: +36 20 9848 999, and anticipating needs,” he says. www.terrapark.hu “There are many opportunities for programming to support healthy Terrapark C + D, Hungary’s first office park of Western European quality, currently is home behaviors through access and to nearly 100 companies in Budaörs. Thanks to its excellent accessibility and favorable opportunities, pop-up areas to provide location, it offers high-quality office space in a natural environment. Terrapark offers office flu shots and mental health counseling, solutions at flexible conditions from 15 sqm to as much as 2,000 sqm on one floor. as well as resolvable small group

300,000 sqm

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Subdued Office Development Activity for 2023 A limited number of office development projects are expected to be undertaken in the immediate future. Developers are exercising caution given an uncertain geopolitical and economic market environment that impacts development costs, debt financing, leasing and take-up, maintenance and property management fees, as well as the possibility of an exit strategy.

GARY J. MORRELL

However, several office developers are going ahead with new-build and renovation projects in various locations across the city with the confidence that leases can still be concluded for quality, welllocated, sustainable office developments.

“There is a delay in the speculative office development pipeline, except amongst developers not heavily reliant on external financing. However, at the same time, there is increasing market demand from occupiers for futureproof, sustainable, energy-efficient office projects,” comments Kata Mazsaroff, managing director of Colliers Hungary.

Total supply in the Budapest office market has reached 4.3 million sqm according to the Budapest Research Forum (BRF), consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, JLL, and Robertson Hungary. Cushman & Wakefield has traced 3.5 million sqm of this as developed on a speculative basis.

BakerStreet by Atenor.

From a developer perspective, Dömötör Károly Makk, head of leasing at TriGranit, comments that although increased demand might decline slightly

in

2023,

the need for “A+” category, sustainable offices is expected to remain solid.

Mátyás Gereben, country manager at CPI Hungary, says that occupiers are reluctant to secure long-term leases or expand their businesses in the current economic situation.

With regard to the quality of stock in Budapest, European and established national developers such as Skanska, Atenor, CPI, Futureal, GTC, HB Reavis, Horizon Development, Property Market, TriGranit, and Wing have common sustainable development policies across their portfolios.

Essentially the market is seeing a growing demand-side gap between highend, well-located, ESG-conforming office assets and earlier-generation buildings.

Overall volume is muted for the next cycle; the forecast completion volume adds up to 180,000 sqm for 2023 and only 122,000 sqm for 2024 (including already pre-committed space), according to CBRE. A further 45,000 sqm of outdated space is due to be updated into modern, ESG-compliant offices.

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Notable Refurbishments

Avison Young has traced 20 office projects representing 274,000 sqm of space under construction or already delivered this year. The largest project under construction is the 40,000 sqm Dürer Kert by Property Market. Notably, there are five refurbishment projects, including the 30,000 sqm CenterPoint 1-2 on Váci út by GTC, and the 10,000 sqm Academia

by ConvergenCE and Europa Capital in the central business district.

A further five projects under construction and representing 105,000 sqm of space are due to be completed in 2024. Significantly, three of these are the second phases of ongoing projects by prolific developers, including the 24,000 sqm BakerStreet II by Atenor, the 22,000 sqm H 2 Offices

by Skanska, and the 20,000 sqm Liberty North by Wing.

“There are still a few speculative office building developments ongoing, but fewer developments have started than in previous years. GTC believes in the development of the office market, which is why we started the construction of our Centerpoint 3 office building,” says Zsolt Berényi, development director at GTC Hungary.

“We believe that tenants are increasingly looking for efficiency, both from operational and maintenance perspectives.

There is also a need for much more sustainable, energy-conscious, and socially space-driven office buildings in the supply market that can serve the tenants’ ESG strategy. Currently, only a few office buildings on the market can satisfy these needs,” he adds.

ConvergenCE has completed the

10,000 sqm Academia office

renovation project in the CBD. “We do not undertake the development of new buildings from the ground up but focus on value-add developments of existing buildings that require refurbishment,” explains Csaba Zeley, managing director of the firm.

“Value-add development is favorable in the current environment as it does not require a prelease, which is

needed to gain the finance for a newbuilt project,” he notes. And nor is ConvergenCE alone in its approach.

“As an international sustainable urban real estate developer, renovation seems like the most attractive option for us for many reasons. Renovation does not always present itself as the most financially beneficial solution, but it is, without a doubt, one of the most sustainable ways of property development,” comments Máté Galambos, leasing manager at Atenor Hungary.

“We have beautiful, historical buildings in the central business district of Budapest, most of them with amazing façades, which is why I believe that taking on the noble responsibility of a CBD refurbishment project (where some of the structural elements are saved and the heritage-protected elements of these buildings are adequately reinstated) is not only a really smart thing to do but also the most forward-thinking in our current climate,” he argues.

High Absorbtion

On the demand side, net absorption for 2022 was the second highest on record, exceeding 2019 levels, according to Cushman & Wakefield.

Occupiers are increasingly focusing on ESG criteria, which will accelerate the absorption process.

Annual take-up increased last year to 247,000 sqm, an increase on the previous year. However, owner-occupier take-up represented 13% of this, says CBRE. The overall vacancy rate for Budapest now stands at 11.3%. However, most analysts do not consider this increasing overall vacancy rate a concern. Cushman & Wakefield see much of the vacancy in older, outdated stock. Discount this, and the more realistic vacancy rate is 7-8%; with an undersupply of modern, quality office stock and a low pipeline for 2024, this will fall further.

Notably, there will be a fall in the vacancy rate for more modern, higher quality stock, an indication of the widening gap between old and new that is also reflected in rents and yields, according to Mike Edwards, head of capital markets at Cushman & Wakefield Hungary.

Office remains the most favored investment sector, with around 40% of the recorded investments for 2022. CBRE put current prime office yields at 6%, up by

75

basis points

and back at 2018 levels.

“While core offices are still attractive, the segment is primarily reliant on allequity buyers in light of current interest rates inching towards 6% for those seeking external financing,” says the consultancy.

The market perception gap between vendors and buyers remains, and few transactions are being concluded.

“Although there is little transactional evidence, prime Budapest office prime yields can be estimated at 5.75-6%,” comments Benjamin Perez-Ellischewitz, principal at Avison Young Hungary.

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PROMOTION

3

Special Report | 17

Building a 5-star FM-PM Concierge Service The ideal building management company combines both front- and backend capabilities, like a mashup between a five-star hotel concierge and a back-office systems technician, says Gábor Nagy, CEO of ICON Real Estate Management.

BBJ STAFF

Vibrant Growth

At the time, ICON was less than three years old as a company but with more than 20 years of experience among its management and staff. Nagy describes it as a “vibrant” period, with people joining from multinational firms and CD Hungary.

“This colorful structure is in our DNA. Companies can say so many things about their assets, but for ICON, we had little to show, just the experience and knowledge of our colleagues. And as we started to show our capabilities, our main partners asked us to manage more properties. In the end, you can see the numbers. We started showing what we know and how we could manage situations, and tenders kept coming. The latest was last month, and from May, we will provide the facility management of DunaPart Downtown,” Nagy says.

“In my mind, property management is something like a concierge, and the facility management is like an expert, so the front- and the back end, but it should be integrated.”

“In my mind, property management is something like a concierge, and the facility management is like an expert, so the front- and the back end, but it should be integrated,” Nagy says.

Most of ICON’s competitors in Hungary historically focused on one core area, either on property or facility management when they were established. Therefore their other competence is usually just a One thing is clear: Sustainability complementary one, Nagy says. will be front and center of everything.

“ICON’s approach is different. We Regulations like the EU Taxonomy will Gábor Nagy, CEO of ICON Real Estate Management demand ever greater compliance, and believe that the synergy of both these fields results in a greater ESG will become increasingly important. customer experience. It is like a finely Listed companies are now subject to is another means to this end, Nagy engineered and smoothly operating EU-wide ESG reporting requirements; This is what I really need to see within believes, setting up competitions system, where PM is the user interface, by 2026, this will also apply to mid-size a building as well; when a group of while FM provides the back-end and SMEs in the EU. Non-ESG compliant people is working together, it should be between building tenants to see who can use their systems most efficiently their combined expertise with the finance will become prohibitively teamwork, continuously improving the or collect the most selectable waste. interaction between the two fields expensive. Investors will find it ever processes and helping each other to And this will likely be necessary until gives our customers a unique tailorharder to sell buildings that aren’t work on that,” he says. today’s teenagers and the often muchmade ICON experience,” says the CEO. certified and won’t be interested in Talking of the future, Nagy is not maligned younger generation join the The firm is a relative newcomer, putting their money into anything else. one to believe that the rise of AI spells workforce en masse. founded in 2018, initially to manage Perhaps, above all, tenants will the end of work for firms such as his.

“Then it won’t be a question of the MOM Park shopping center need sustainable buildings to satisfy A smart office can run efficiently and education because they will bring the and offices. The CEO says it was the requirements of their staff and, collect all the data it wants, but that mindset. It is the oldies like us who originally his idea to integrate crucially, retain them. needs to be interpreted by a human need to adapt!” functions within one firm but “I completely agree,” Nagy confirms. because a machine cannot know how it In his time at ICON, Nagy has refuses to take all the credit.

“A friend told me, ‘Gábor, retention is “feels” to work in a building. never known a period that was not “How we lead the company, it is not the new recruitment,’ and I think he is “We have to use AI because the exciting, but through it all, the firm one big gorilla who knows everything, absolutely right.” We are not yet at the data can help us create the matrix, has continued to win tenders, manage pushing all the ideas. This thing came point where ESG determines all, but we understand the situation and simplify buildings and grow. from my mind originally, but it is quite are on the path to it. the setup. But, it needs a human being “When I joined the company, it different right now because all the “What we can experience is that, who understands what the tenants and was in the middle of COVID, when it members of the management, and beside ESG, the cost consciousness and owners need,” he points out. sometimes seemed business would the important people, the staff, put energy consciousness will be more and stop. But on the other hand, it was something into the idea and created it,” Education is Key more important,” Nagy explains.

“And there is another interesting thing. the time when many actors in the Nagy explains.

“When supply is still growing in the You can create a building that is highmarket started to rethink their “If you impose a vision, it is not office market, but demand does not end, smart, and ‘knows’ everything, and business structure. And I was also enough because in many cases, it keep up, like now, the occupancy you can offer perfect services for the surprised, but we saw many tenders doesn’t work. I think that it is always rate is not as good. Landlords are common areas, but it is still not enough at that time,” he recalls. better to work together.” That interested in offering better quality “There were opportunities to take, so philosophy applies across the board, he if the tenants are doing something else services. And tenants are looking in their areas.” we jumped in and started to build, step insists. for decent cost and service balance Put it another way, education is by step. The most significant decision “Our company has more than 120 at the end. So, the quality of the critical. FM staff needs to be able and from this period was when we bought experts on staff, but we have a circle property and facility management willing to speak to tenants to show CD Hungary’s facility management of 15 senior people thinking about the services could become significant. them how to get the best out of the business line and, overnight, became a future of the business, so roughly oneThere are tenders every quarter and complex service provider.” tenth of the staff is part of the strategy. building’s facilities. Gamification opportunities for more growth.”

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Challenges of CBD Development Lead to Multiple Budapest Office Districts One of the significant challenges for office developers in Budapest is to source suitably-sized development plots with direct public and private transport links that provide visibility.

All this at a time when competition for such space in a relatively compact city is becoming more intense and consequently more expensive.

As a result, Budapest has several business districts across the city on both the Buda and Pest sides of the river.

“The principles of sustainability in terms of location is pretty simple: an urban office district is best located when easily and quickly accessible from residential and retail areas, and there are means of public transport that support commuting back and forth to these destinations, all while being cost and energy-efficient,” comments Máté Galambos, director of leasing at Atenor Hungary.

The Váci Corridor is, arguably, still the most favored office development destination. The area is a model example of how a local authority, in this case District XIII, can attract developers to a postindustrial environment with brownfield sites (crucially here providing direct access to the M3 metro) and develop the location into a leading business district with relatively easy access to and from residential areas.

In a recent delivery in the Váci Corridor, The phased 38,000 sqm Liberty office complex is Skanska has completed the first 27,000 being developed by Wing near the junction of Könyves sqm phase of the 67,000 sqm H2Offices, Kálmán körút and Albert Flórián út, in District IX. the development located on the plot of the demolished former headquarters of Budapest Waterworks. A second projects in several slightly outGARY J. MORRELL of-center and suburban locations. phase Critically, these provide direct The additional difficulty of sourcing of the project is due to be delivered transportation links and are plots in the historic center and in late 2024. integrated into the wider urban the resulting lack of an established Also in Váci út, GTC delivered the environment, providing direct Central Business District means 27,500 sqm Pillar office complex last year. access to shopping, hospitality, developers are undertaking Further south but still on the same road, and other facilities for office users.

22,000 sqm

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the developer is constructing the 70,000 Budapest. I would like to underline sqm CenterPoint and refurbishing the the attractiveness of Könyves Kálmán 30,000 sqm CenterPoint 1 and 2 buildings. körút in District IX, where we developed Although Pillar and H2Offices are located the Telekom headquarters. Owing to in green environments in the upper reaches its excellent location, we are developing of the Váci Corridor, one critique is that Váci a new project next to it, namely ut should have been redesigned as an avenue, the aforesaid Liberty,” says Noah with more green areas rather than remain as Steinberg, chairman & CEO Wing. a dual-carriageway, as is currently the case.

“The location has many advantages, with a range of dining and cultural Strongest Activity facilities within a few minutes’ walk In the first quarter of 2023, the strongest of the building. In addition, the area occupational activity was recorded in the has recently undergone significant Váci Corridor, with it attracting 31% of total development, and other ambitious demand according to the Budapest Research projects are underway, which will Forum (BRF), consisting of CBRE, Colliers continue to enhance the prestige of the International, Cushman & Wakefield, Eston neighborhood and Liberty,” he insists.

International, JLL, and Robertson Hungary.

Galambos argues that Atenor has The Central Pest submarket took second place become something of a trendsetter in the with 23%, followed by Central Buda at 15%. Budapest office market by developing The outer boulevard of Hungária körút in what were previously unrecognized is also developing into an office hub. In office locations, such as the southern District VIII it is home part of the Váci Corridor.

to the

72,000 sqm

Waterside Opportunities

South Buda can offer waterside Aréna Business Campus, which is being development opportunities, a prime developed in four phases by Atenor. Wing, example being BudaPart by Property meanwhile, is set to deliver the phased Market on a 54-hectare site on the banks 38,000 sqm Liberty office complex, of the Danube at Kopaszi Gát [Dam]. further along in District IX where the The project includes office, retail, leisure, boulevard becomes Könyves Kálmán hotel and residential components in körút, and near the junction with Albert addition to large park areas and is based Flórián út. Both complexes are located on the concept of developing a new city at road, metro and tram junctions. quarter, whereby a person can access all “South Pest and South Buda still their basic day-to-day needs within a offer several suitable locations in 15-minute walk. Most recently, Property

3 “Taking on the noble responsibility of a CBD refurbishment project, where some of the structural elements are saved and the heritage-protected elements of these buildings are adequately reinstated, is not only a really smart thing to do but also the most forward-thinking in our current climate.”

Market has delivered the 8,000 sqm BudaPart Downtown office.

Projects are now being developed on the Central and Southern Buda banks and across the river on the Pest side of the Danube. Such prime sites overlooking a river would be extremely challenging to source in many European capitals.

As mentioned at the top of this article, Budapest lacks a defined CBD due to the lack of large, well-located development plots. That is further compounded by the understandable priority the city planning authorities put on protecting listed buildings, meaning the planning process in the historic center can be protracted.

One option is to redevelop existing quality buildings, and there are certainly several listed properties

Special Report | 19 within the CBD in need of renovation.

Europa Capital purchased the riverside Akadémia Business Center, in partnership with ConvergenCE acting as the asset manager, in

early

2022

and has redeveloped it into the 10,500 sqm Academia office center.

Developers like Wing and the French investor Groupama Gan REIM have also completed acquisitions of historic buildings in the CBD, a development vehicle that was arguably pioneered

by Horizon Development with its Eiffel Palace (2013) and Váci 1 (2016) projects.

“As an international sustainable urban real estate developer, renovation seems like the most attractive option for us for many reasons. Renovation does not always present itself as the most financially beneficial solution, but it is, without a doubt, one of the most sustainable ways of property development,” Galambos agrees.

“We have beautiful historical buildings in the CBD of Budapest, most of them with amazing façades, which is why I personally believe that taking on the noble responsibility of a CBD refurbishment project, where some of the structural elements are saved, and the heritage-protected elements of these buildings are adequately reinstated, is not only a really smart thing to do but also the most forward-thinking in our current climate,” he concludes.

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News in Brief Real Estate: Office

Construction Sector Wages Highest for Civil Engineering Work

MOL Opens Observation Deck of High-rise HQ

Construction workers involved in civil engineering projects were paid one-third more than the industry average last year, according to data compiled by the Central Statistical Office (KSH). On average, construction sector workers earned a gross monthly HUF 380,000 in 2022.

Blue-collar workers got HUF 310,000 and white-collar staff HUF 521,000. The average wage in the sector was 76% of the average for the national economy as a whole. The monthly average salary for a construction sector worker involved in utility projects stood at HUF 513,000.

MNB Notes Rising Vacancy Rates in Office Property, Industrial Markets The visitor center and observation deck of the MOL Campus have been opened to the public. Photo by Zoltán Máthé / MTI Hungarian oil and gas company MOL opened the observation deck of its new high-rise headquarters to visitors on April 21, according to portfolio.hu.

The panoramic terrace on the top, 29th floor of the building, can be reached by a glass elevator from a visitor center on the ground floor. Entry to the visitor center is free of charge. Tickets for the observation deck may be purchased online. MOL laid the cornerstone

of the HQ in October 2018 and topped out the structure in August 2021. It was inaugurated in December 2022. The building was designed by London’s Foster & Partners in collaboration with Hungary’s Finta Studio. Berlin-based Kinzo and Hungarian partner Minusplus were in charge of interior design.

The general contractor was Market Épitő. Around 2,500 people work in the 86,000 sqm office building.

The National Bank of Hungary (MNB) noted rising vacancy rates in the office and industrial property markets and pointed to the risk of oversupply in a report published on its website on April 27. “On the basis of construction underway, the risk of oversupply developing is significant within one year on the office space market and in the mid-term on the industrial and logistics property market,” the central bank warned. The MNB noted that the vacancy rate in the office market in the capital stood at 11.3% at the end of 2022, up 2.1 percentage points from 12 months earlier. The vacancy rate in the industrial

and logistics property market increased by 0.6 of a percentage point to 3.8% during the period. The report shows 267,000 sqm of office space was inaugurated in the capital last year, bringing the total stock to 4.3 million sqm. A “significant volume” of inaugurations is expected in 2023. Around 333,000 sqm of industrial and logistics space was inaugurated in and around Budapest last year, while another 358,000 sqm is due to be handed over in 2023.

Construction Sector Output Fell 11.8% y.o.y. in February The output of Hungary’s construction sector slipped 11.8% year-on-year in February, falling for the third month in a row, and at an accelerated pace, according to data released by the Central Statistical Office (KSH) in late April.

The output of the buildings segment dropped 8.8%, while civil engineering output fell 17.7%. In absolute terms, the construction sector output reached HUF 424.5 billion in February. The buildings segment accounted for 71.6% of the total. In a month-on-month comparison, construction sector output rose 1.9%, adjusted for seasonal and workday effects. The order stock was 25.2% lower at the end of February than 12 months earlier. Buildings segment orders were down 13.6% and civil engineering orders declined 33.1%. New orders dropped 44.4%, albeit from a high base. New orders in the buildings segment declined 36.6% and new civil engineering orders fell 49.7%.

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ATENOR – A STRONG COMMITMENT TO ESG PRINCIPLES • Green & accessibility certifications – BREEAM Excellent & Access4You certified buildings • Green Finance Framework – created consistently with the guidelines of “Green Bond Principles” • Green Bonds – issuing retail bonds for the purpose of financing sustainable real estate projects • CO2-neutral developer – corporate level Carbon Neutral certification® in collaboration with CO2logic

• Soft mobility – Promoting environment-friendly ways of transport by easily accessible buildings • Energy-efficient buildings – reducing emissions and improving energy efficiency • Acting for the future – Planting trees locally every year since 2020 • Acting for People – societal commitment for the wellbeing of citizens See more of ATENOR’s Sustainability ambitions and actions on www.atenor.eu

ROSEVILLE 15,500 sqm • Handover in 2023 Q1

B R U S S E L S - T H E H A G U E - L U X E M B O U R G - PA R I S - L I S B O N - D Ü S S E L D O R F - W A R S A W - B U D A P E S T - B U C H A R E S T - LO N D O N

www.arenabusinesscampus.com • www.atenor.eu • www.roseville.hu Contact: Atenor Hungary Kft. 1138 Budapest, Váci út 121-127.

Zoltán Borbély Country Director +36 1 785 52 08, borbely@atenor.eu

Máté Galambos Leasing Manager +36 1 785 52 08, galambos@atenor.eu

Melinda Kovács Development & Leasing Manager +36 1 785 52 08, kovacs@atenor.eu

ARÉNA BUSINESS CAMPUS

BAKERSTREET

72,000 sqm • Building A handed over in Q2 2020 • Building B handover in 2023 • Building C & D planned

42,000 sqm • Phase I handover in Q1 2024 • Phase II handover in Q4 2024

Centerpoint - your new destination on the Váci út office corridor Centerpoint is a 75,000 m2 state–of–the–art office development in the heart of the office quarter, delivered by GTC in two phases: a complete refurbishment and re-imagination of the existing iconic building and a brand new adjoining development, completing 2024.

Centerpoint connects sustainability, flexibility and efficiency.

For more information on the offices and the conditions of leasing, please contact GTC Leasing Team at leasing@gtc.hu or at +36 1 412 3680.

22 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

Category “A” office buildings in greater Budapest

ARénA Business CAmpus www.arenabusinesscampus.hu 66,984 71,859

1

2

BudApest one https://www.futurealgroup. com/hu/projects/budapestone/

66,299 107,424

3

AgoRA BudApest www.agorabudapest.com

65,000 126,500

4

telekom székház www.wing.hu

56,799 117,850

5

tópARk Be my City www.topark.hu

CenteR point centerpoint.hu 6

9

270 5

32 908

A A

8

350 5

28 894

A A

gAteWAy offiCe pARk www.gatewaybc.hu www.cpipgroup.hu 8

✓

Raiffeisen Bank, bp, Stada Hungary, B+N Referencia Zrt, ✓ Nowy Styl, DKF, Qubes, Manna ABC, dm

–

✓

✓

✓

✓

✓

✓

✓

✓

CBRE, www.cbre.hu; Cushman & – Wakefield, www. cushmanwakefield. com

–

–

✓

✓

✓

✓

✓

independent poWeR supply

BiCyCle pARking

WAste ReCyCling ✓

oWneRship (%) hungARiAn nonhungARiAn

1087 Budapest, Hungária Greens Hungária körút 30.

Kft. (100) ✓ (1) 785-5208 – –

✓

Futureal (100) –

1112 Budapest, Boldizsár utca 1–3.

(1) 266-2181 info@ futurealgroup.com

✓

HB Reavis Ingatlanfejlesztési Alap (100) –

1133 Budapest, Árbóc utca 1–3.

(70) 467-5482 reception@ agorabudapest.com

–

TSZ Development Ingatlanfejlesztő Kft., (100) –

1097 Budapest, Könyves Kálmán körút 36.

– sales@wing.hu

17

1,100

9

800 3

12 1,350

16 7

55,000 220,000

4

150 5

81 3,000

A A

A

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

2051 Biatorbágy, Sasbérc út 1.

(1) 382-7560, (70) 370-6666 meszarosg@ topark.hu

37,465 42,000

9

270 3

16 564

16.50 1,741 HUF

Honeywell, NIO, Miniszterelnökség

✓

✓

✓

✓

✓

✓

✓

www. centerpoint.hu

✓

✓

✓

–

A A

1139 Budapest, Váci út 85.

(1) 412-3680 leasing@gtc.hu

1095 Budapest, Lechner Ödön fasor 10/B (20) 950-2585 dmakk@ trigranit.com

A

Magyar Telekom

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

–

–

–

✓

✓

✓

✓

✓

✓

MSD Pharmaceuticals, Henkel Hungary, Fressnapf, FIBS, Provident Pénzügyi ✓ Zrt., bimGroup, ION Dealogic, Insulartech, Kantin, Aestella Klinika

–

✓

✓

✓

✓

–

Colliers, CBRE

✓

✓

✓

✓

– Revetas Capital (100)

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

(70) 478-0556 offices@cpipg.com

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

✓

✓

✓

–

– CA IMMO (100)

1133 Budapest, Váci út 76.

(1) 501-2800 office@caimmo.hu 1143 Budapest, Gizella út 51–57.

(1) 451-4760 sales@wing.hu

1134 Budapest, Váci út 45.

(70) 478-0556 offices@cpipg.com

37,000 38,500

10

500 5

12 641

17.50 6

35,900 50,800

9

274 5

4+3+3 425

14.50-17 1,590 HUF

A

9

200 5

18 640

15–16 1,936 HUF

House of Business, Ferrero

10 475

13 4

Siemens, TÜV, Rheinland, TK Elevator, Sysdata

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Gladiátor III. Ingatlan Befektetési Alap (100) –

25 733

13–17 2,850 HUF

A

✓

✓

✓

✓

✓

✓

✓

JLL, www.jll.hu, Robertson, www.robertson.hu

✓

✓

✓

✓

– CPI Property Group (100)

32,000 38,000

hungáRiA offiCe pARk 10 www.wing.hu

31,432 39,900

3–6

200 0,5–5

31,200 38,810

8

228 5

✓

–

✓

✓

✓

myhive átRium pARk www.myhive-offices.com/hu 11

AddRess phone emAil

A A

CApitAl squARe www.caimmo.com www.capitalsquare.hu

9

A

✓

–

leAsing Agent, WeBsite

400 0.50–5

millennium gARdens https://millenniumgardens.hu 7

A

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

24-houR ReCeption And seCuRity seRviCes

Wellness And spoRt seRviCes

RestAuRAnt/CAfé

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

CuRRent mAjoR tenAnts

nAtuRAl light And AiR ventilAtion

gReen teChnologies

seRviCes no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Ranked by net office space

3

www.bbj.hu

A A

29,280 31,823

8

1,000 5

14 488

A A

29,000 31,300

16

115 5

8 420

17 1,542 HUF

9

400 5

18 662

17 5

euRope toWeR –

30,000 38,000

15

CoRvin innovAtion 16 CAmpus https://www.futurealgroup.com

17

dunA toWeR www.dunatower.hu

liBeRty iRodAház 18 www.wing.hu

28,643 67,827

Erste Bank Hungary Zrt.

A

–

A

A

A

A

A

28,520 33,896

7

West end Business 20 CenteR –

28,065 43,000

7

–

–

–

Avestus Real Estate Hungary Kft.

A

–

A

A

A

AddRess phone emAil

–

A A

1134 Budapest, Dózsa György út 128–130.

(1) 600-6560 info@mfbingatlan.hu

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1095 Budapest, Soroksári út 44.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

– (100)

1054 Budapest, Szabadság tér 7.

(1) 302-9010 anett.eles@ bankcenter.hu

A

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1138 Budapest, Népfürdő utca 24–26.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1083 Budapest, Szigony utca 26-30.

(1) 266-2181 office@ futurealgroup.com

–

–

–

A

GTC, Metlife, TMF, IDBC, IBM, UNHCR, VPO, Sylvania

–

–

www. dunatower.hu

–

A A

1138 Budapest, Népfürdő utca 22.

(1) 412-3680 leasing@gtc.hu

Cushman & Wakefield Kft., www.

cushmanwakefield. com

Gladiátor VI. Ingatlan Befektetési Alap (100) –

1097 Budapest, Könyves Kálmán körút 34.

(1) 451-4760 sales@wing.hu

– CPI Property Group (100)

1095 Budapest, Soroksári út 30–34.

(70) 478-0556 offices@cpipg.com

JLL, www.jll.com

–

A A

1132 Budapest, Váci út 20–26.

(1) 236-6400 –

A

eMAG -Extreme Digital, GEODIS

313 5

15 249

14.50–23.50 3,250 HUF

A

JLL, www.jll. hu Cushman & Wakefield Kft.,

www. cushmanwakefield. com

A

12 399

A A

A

–

–

5

oWneRship (%) hungARiAn nonhungARiAn

Futureal (100) –

myhive hAlleR gARdens www.myhive-offices.com/hu 19

–

independent poWeR supply

A A

BiCyCle pARking

15

A A

A

WAste ReCyCling

A A

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

17 475

30,041 52,180

BAnk BRAnCh/Atm

11

250 5

BAnk CenteR 14 www.bankcenter.hu

A

in-house fACility mAnAgement

A A

suitABle foR disABled people

16 541

30,315 50,025

A

gReen enviRonment

8

350 5

mill pARk 13 www.millpark.hu

A

24-houR ReCeption And seCuRity seRviCes

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm) A A

Wellness And spoRt seRviCes

no. of elevAtoRs no. of pARking spACes 14 443

30,548

RestAuRAnt/CAfé

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

7

– –

spiRAl 12 www.mfbingatlan.hu

CuRRent mAjoR tenAnts

Special Report | 23 gReen teChnologies

seRviCes

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Budapest Business Journal | May 5 – May 18, 2023

Roosevelt iRodAház – 27,757 29,600

21

8

250 5

8 230

A

12

Dr. Rose, Cloudera, Bloomberg, HOB

–

–

Eston

–

OTP Ingatlanbefektetési Alap (100) A

22

pARkWAy www.psg-irodahazak.hu

pillAR www.gtcgroup.com

27,600 31,200

23

27,425 29,059

BARtók udvAR ii.

24 www.bartokudvar.hu

27,000 37,300

ip West 25 www.caimmo.com www.ipwest.hu

26,500 30,100

9

6

9

8

8 554

A A

A

3

16 389

A A

ExxonMobil Hungary

350 5

11 507

A A

NAK, Multisoft, Innobyte, MindentMent, MC-Bauchemie

A

3

A

280 3

15 841

A A

A

–

–

–

–

–

–

–

–

–

Avison Young Hungary, info.hungary@ avisonyoung.com www. avisonyoung.hu

1051 Budapest, Széchenyi István tér 7–8.

(70) 654-5393 holub.erika@ iconrem.hu

–

A A

1087 Budapest, Könyves Kálmán körút 54–58.

(1) 327-2050 info@psgirodahazak.hu

–

A A

1134 Budapest, Dózsa György út 61–63.

(1) 412-3680 leasing@gtc.hu

–

Infogroup (100) –

1115 Budapest, Bartók Béla út 105–113.

(1) 481-4530 info@infogroup.hu

–

– CA IMMO (100)

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 office@caimmo.hu

26

sCienCe pARk www.sciencepark.hu

26,102 29,498

27

népliget CenteR www.nepligetcenter.com

26,000 28,800

doRottyA udvAR 28 www.dorottya.net

29

BudApARt CentRAl www.budapart.hu/hu/irodak

eXChAnge pAlACe 30 –

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

490 5

10 388

A A

8

250 5

12 478

A A

25,977 29,073

4

250 5

8 566

A A

A

–

25,793 28,247

7

500 5

10 637

18 1,800 HUF

A

–

8

1,000 5

13 1,000

A A

A

8

250 3

12 360

A A

OTP Bank Nyrt., Budai Egészségközpont

12 400

15

A

BsR CenteR –

A

A

31

24,790 41,667

váCi gReens B épÜlet 32 www.vacigreens.hu

24,770 25,303

7

500 5

south BudA 33 Business pARk www.sbbp.hu

24,705 24,705

6

424 5

431

A A

8

808 –

12 370

14.50–15.90 1,923 HUF

8

300 5

9 407

15.50–16.50 Tresorit, Continental 2,230 HUF

A

–

–

–

–

CBRE, www.cbre.hu

independent poWeR supply

BiCyCle pARking

WAste ReCyCling

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

24-houR ReCeption And seCuRity seRviCes

Wellness And spoRt seRviCes

RestAuRAnt/CAfé

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

CuRRent mAjoR tenAnts

7

25,000 50,000

gReen teChnologies

seRviCes no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CompAny WeBsite

no. of levels

Special Report net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

24 | 3

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

– Woodpecker Acquisitions (100)

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 office.hungary@ cbre.com

–

– MCAP Global Finance (100)

1097 Budapest, Könyves Kálmán körút 11.

– balazs.szecsy@ cbre.com 1113 Budapest, Bocskai út 134–146.

(1) 888-0395 gabor.kertesz@ cbre.com

–

Cushman & Wakefield, www.

cushmanwakefield. com

Avison Young Hungary, info.hungary@ avisonyoung.com

–

– (100)

–

Kopaszi Gát Zrt. (100) –

1117 Budapest, Budafoki út (30) 147-0421 sales@budapart.hu

–

– Tippin Corporation (A), Optimum (A)

1054 Budapest, Szabadság tér 17.

(1) 374-3040 richard.vigh@ cbre.com

–

OTP Ingatlanbefektetési Alap (100) –

1138 Budapest, Váci út 135–139.

(70) 797-4113 bartok.richard@ iconrem.hu

1138 Budapest, Bence utca 1.

(1) 336-0900 alapkezelo@ otpingatlanalap.hu

–

–

–

NIX, Ecolab, Givaudan, Affidea, Accenture

–

–

–

OTP Prime Ingatlanbefektetési Alap (100) –

A

–

–

Robertson Hungary Kft., www.robertson.hu

A A

1117 Budapest, Budafoki út 56.

(1) 327-2050 office@robertson.hu

1087 Budapest, Hungária körút 40–44.

(70) 478-0556 offices@cpipg.com

ARenA CoRneR www.arena-corner.hu 34

24,200 47,000

City gAte 35 www.caimmo.com www.citygate.hu

24,000 26,215

CoRvin teChnology 36 pARk 1-2 www.futurealgroup.com

pRomenAde gARdens 37 www.promenadegardens.hu

23,749 27,390

23,311 A

8

6

250 5

10 A

A A

A

18 340

A A

5

A

A

A

–

–

–

–

–

Cushman & Wakefield, www.

cushmanwakefield. com

skypARk offiCe Building 39 https://www.otpbank.hu/ otpingatlanalap/hu/Fooldal

23,305 25,053

23,204 27,390

8

8

347 5

1,000 5

12 355

11 463

A A

A A

A

Nokia

–

–

–

CBRE, www.cbre.hu; Cushman & Wakefield,

www. cushmanwakefield. com

váCi gReens f épÜlet www.vacigreens.hu 38

Avison Young

–

CBRE

–

– CPI Property Group (100)

–

– CA IMMO (100)

1092 Budapest, Köztelek utca 6.

(1) 501-2800 office@caimmo.hu

(100) –

1082 Budapest, Bókay utca (1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu 1133 Budapest, Váci út 80.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

VGF Invest Kft. (100) –

1139 Budapest, Fiastyúk utca 4–8.

(1) 785-5208 info@atenor.hu

–

OTP Prime Ingatlanbefektetési Alap (100) –

1083 Budapest, Bókay János utca 36–42.

(1) 336-0900 kistamas.agnes@ otpingatlanalap.h

3

www.bbj.hu

pARk AtRium www.parkatrium.hu

22,500 42,000

CoRvin toWeRs 42 –

22,305 24,137

eAst-West Business 43 CenteR www.ersteingatlan.hu

21,500 30,000

41

8

500 5

10 399

A A

6

152 5

17 A

A A

10

200 5

7 222

A A

BudAöRs teRRApARk C+d www.terrapark.hu 21,282

44

45

A

eRiCsson offiCe Building www.gtcgroup.com

váCi CoRneR offiCes 46 www.vacicorneroffices.hu

47

48

univeRsum_siemens www.gtcgroup.com

White house www.whitehousebudapest.hu

vision toWeRs 49 –

21,100 22,210

21,047 33,000

5

7

8

Euronet, Medicover, NuSkin, Signal, ✓ Hold Alapkezelő

A

A

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

Horizon Development

✓

✓

✓

✓

independent poWeR supply

BiCyCle pARking ✓

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

Torony Ingatlan Befektetési Alap (100) –

1123 Budapest, Alkotás utca 50.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

✓

– (100)

1068 Budapest, Dózsa György út 84/B (1) 473-1209 leasing@ horizondevelopment.hu 1082 Budapest, Futó utca 35–45.

(1) 236-6408 Ersek.timea@ otpingatlanalap.hu

–

✓

✓

✓

–

(100) –

✓

✓

✓

–

Erste Ingatlan Kft. (100) –

1088 Budapest, Rákóczi út 1–3.

(1) 268-4300 info@ersteingatlan.hu

Terrapark Kft., www.terrapark.hu

✓

✓

✓

✓

– Terrafinanz GmbH (100)

2040 Budaörs, Liget utca 3/2.

(23) 423-323 info@terrapark.hu

✓

A A

1117 Budapest, Magyar Tudósok körútja 11.

(1) 412-3680 leasing@gtc.hu

–

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150.

(1) 580-2280 info@ vacicorneroffices.hu 1117 Budapest, Magyar Tudosók körútja 11.

(1) 412-3680 leasing@gtc.hu

–

✓

✓

✓

✓

✓

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

Kontron, Partner in Petfood, Ariston, Ricoh, Flaga, Dexon Systems, Budasensor, ✓ GoodMills, Homlok Építő, JS Logistics, Edco, Hungaroflotta, Honda, Sága Foods, PBA Insura

✓

✓

✓

✓

✓

✓

A

✓

WAste ReCyCling

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

A A

24-houR ReCeption And seCuRity seRviCes

9 394

Wellness And spoRt seRviCes

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

8+3

300 5

RestAuRAnt/CAfé

no. of elevAtoRs no. of pARking spACes

22,600 23,300

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

Alkotás point 40 www.diofaalapkezelo.hu

CuRRent mAjoR tenAnts

Special Report | 25 gReen teChnologies

seRviCes

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Budapest Business Journal | May 5 – May 18, 2023

15 1–3

13 398

A A

A

5

8 500

A A

200 5

9 363

A A

A

5

11 518

A A

evosoft

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

✓

A A

A

✓

–

✓

✓

✓

✓

–

CBRE

✓

✓

✓

–

A A

1134 Budapest, Váci út 47.

(1) 374-3040 – 1134 Budapest, Váci út 29–31.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

Ericson

A

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

–

–

–

–

✓

✓

✓

✓

✓

✓

20,700 22,350

7

20,404 21,574

9

– 5

14 299

A A

20,312 25,178

8

– –

A A

A A

A

A

A

A

A

A

A

A

–

A

A

A

A

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

20,245 30,141

10

220 5

11 357

11–15 3,350 HUF

A

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

✓

– CPI Property Group (100)

1134 Budapest, Váci út 35.

(70) 478-0556 offices@cpipg.com

RiveR estAtes www.cpigroup.hu 50

51

h2offiCes - i. fázis www.skanska.hu

20,148 26,820

9

2,500 5

10 299

18 6

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

A A

1134 Budapest, Váci út 23–27.

(1) 382-9100 property@skanska.hu

52

offiCe gARden iv www.officegarden.hu

19,663 21,200

7

700 5

A A

A A

A

✓

–

✓

✓

–

✓

–

–

✓

✓

✓

✓

(100) –

1117 Budapest, Alíz utca 3.

(1) 327-2050 office@robertson.hu

A

12 388

A A

✓

A A

1123 Budapest, Alkotás utca 55–61.

(70) 451-2589 szajlai.ipacs. andrea@wfacility.hu

hillside offiCes www.hillsideoffices.hu 53

19,656 21,923

8

5

A

✓

–

✓

✓

✓

✓

✓

W-Facility Kft.

✓

✓

✓

AdvAnCe toWeR i-ii 55 www.erstealapkezelo.hu

18,920 19,981

8

55

váCi gReens C épület www.vacigreens.hu

18,920 20,035

57

ResidenCe 1-2 www.robertson.hu

18,770

57

R70 offiCe Complex www.epkar.hu

59

mom pARk iRodák iconrem.hu

offiCe gARden ii 60 –

gReen teChnologies

seRviCes

–

Eston Zrt.

✓

✓

✓

✓

6

– –

6–9 301

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

– ZFP Realitní Fond (100)

6

614 5

5 247

A A

A

✓

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

–

–

1027 Budapest, – Kacsa utca 15–23.

LFPI Group (100) (1) 327-2050 office@robertson.hu

18,700 19,000

10

250 3

9 450

A A

A

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

Épkar Zrt. (100) –

18,629 48,000

6

70 5

13 486

19 13

Bonafarm csoport, PortfoLion, M csoport, Pfizer, House of Business

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

A

18,600 27,000

✓

✓

✓

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1133 Budapest, Váci út 96–98.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1134 Budapest, Váci út 43.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1138 Budapest, Bence utca 3.

– info@zfpinvest.com

OTP Ingatlanbefektetési Alap (100) A

1123 Budapest, Alkotás utca 53.

(1) 487-5501 office@mompark.hu 1117 Budapest, Alíz utca 2.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

8

6 310

A A

A

✓

–

✓

✓

–

✓

–

–

✓

✓

✓

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

7

250 5

10 365

A A

A

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

A A

1062 Budapest, Teréz körút 55–57.

(1) 785-4985 info@celand.hu

7

195 5

A A

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

1117 Budapest, Gábor Dénes utca 2.

(30) 822-5466 –

3–8

A A

6 410

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓

–

✓

✓

(100) –

2040 Budaörs, Szabadság út 117.

(1) 266-9441 info@adventum.hu

8 250

A A

A

✓

✓

✓

✓

✓

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

✓

✓

✓

–

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 8.

(1) 501-2800 office@caimmo.hu

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– (100)

1117 Budapest, Buda-part tér 2.

(1) 225-6600 hungary@cpipg.com

✓

✓

✓

✓

(100) –

1113 Budapest, Diószegi út 37.

(1) 473-1209 leasing@ horizondevelopment.hu

✓

✓

✓

–

– (100)

1036 Budapest, Lajos utca 48–66.

(1) 266-9441 info@adventum.hu

eiffel téR iRodAház www.eiffelter.hu

18,500 23,500

61

infopARk d épület –

18,500

63

BudAöRs offiCe pARk www.budaorsofficepark.hu

18,000 22,000

millennium toWeR iii 64 www.millennium-towers.hu www.caimmo.com

18,000 21,000

8

– 5

65

17,838 30,268

12

300 5

9 401

A A

pARkside offiCes 66 –

17,500 28,000

5

500 5

9 260

A A

A

✓

✓

✓

✓

✓

✓

✓

Horizon Development

BudA squARe –

17,400 18,400

6

A A

6 394

A A

A

✓

–

✓

✓

✓

✓

✓

–

8+3

200 5

6 252

A A

Avis Budget Group, MSCI, Deichmann, Isys-On, Diófa Alapkezelő

7

500 5

10 411

16.50 1,800 HUF

BudApARt gAte www.cpigroup.hu

67

gReen house 68 www.diofaalapkezelo.hu

17,300 17,800

BudApARt City 69 https://www.budapart.hu/hu/ irodak

17,260 19,752

1074 Budapest, Rákóczi út 70–72.

(1) 422-3550 info@epkar.hu

A A

61

A

✓

independent poWeR supply

✓

✓

BiCyCle pARking

✓

✓

JLL, www.jll.com

WAste ReCyCling

✓

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

✓

✓

BAnk BRAnCh/Atm

–

–

in-house fACility mAnAgement

✓

✓

suitABle foR disABled people

A

Erste Nyíltvégű Euró Ingatlan Befektetési Alap (100) –

A

A

gReen enviRonment

A A

A

24-houR ReCeption And seCuRity seRviCes

5

4 169

8

Wellness And spoRt seRviCes

A A

400

CuRRent mAjoR tenAnts

RestAuRAnt/CAfé

12 404

no. of levels

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

19,629 19,668

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

no. of elevAtoRs no. of pARking spACes

noRdiC light 54 –

RAnk

CompAny WeBsite

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

Special Report net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

26 | 3

A

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

–

–

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

✓

✓

✓

✓

1134 Budapest, Torony Ingatlan Kassák Lajos utca 19.

Befektetési Alap (1) 888-4120 (100) ingatlan@ – diofaalapkezelo.hu

✓

✓

✓

–

Bpart Aspius Kft. (100) –

1117 Budapest, Dombóvári út 26.

(30) 147-0421 sales@budapart.hu

3

www.bbj.hu

72

teRRApARk next B www.terraparknext.com

17,042 20,323

✓

–

✓

✓

✓

✓

✓

–

–

✓

–

✓

✓

✓

✓

✓

✓

independent poWeR supply

A

✓

BiCyCle pARking

A A

✓

WAste ReCyCling

8 254

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

A A

–

BAnk BRAnCh/Atm

6

✓

in-house fACility mAnAgement

17,047 19,227

A

suitABle foR disABled people

mARgit pAlACe www.margitpalace.com

9 299

gReen enviRonment

71

1,270 5

24-houR ReCeption And seCuRity seRviCes

8

Wellness And spoRt seRviCes

17,249 18,490

A A

CuRRent mAjoR tenAnts

RestAuRAnt/CAfé

no. of levels

gReen CouRt offiCe www.greencourtoffice.hu

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

70

no. of elevAtoRs no. of pARking spACes

CompAny WeBsite

Special Report | 27 gReen teChnologies

seRviCes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

RAnk

Budapest Business Journal | May 5 – May 18, 2023

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

✓

Codic Hungary (100) –

1134 Budapest, Dózsa György út 144–148.

(1) 266-6000 info.hungary@ codic.eu

✓

– (100)

1027 Budapest, Henger utca 2.

(1) 266-9441 info@adventum.hu

–

– Bluehouse Capital (100)

2040 Budaörs , Edison utca 4.

(1) 700-8013 office@ bluehousecapital. com

–

– CA IMMO (100)

1114 Budapest, Bartók Béla út 43–47.

(1) 501-2800 office@caimmo.hu

–

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.com 1117 Budapest, Alíz utca 4.

(1) 382-7020 grtgroup@ grtgroup.hu

A

300 5

6 240

A A

9

400 3

5 406

A A

8

367 5

6 300

15.50–17

A

5

5 427

A A

A

✓

–

✓

✓

✓

–

–

–

✓

✓

✓

–

GRT Group (100) –

A

✓

–

✓

✓

✓

✓

✓

JLL, www.jll. hu

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Teve utca 1/A-C (70) 478-0556 offices@cpipg.com

✓

(100) –

1082 Budapest, Futó utca 47–53.

(1) 236-6408 ersek.timea@ otpingatlanalap.hu 1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.com

A

✓

–

✓

✓

✓

✓

–

–

✓

BARtók ház 73 www.caimmo.com www.bartok-haz.hu

17,000 30,000

millennium toWeR ii 73 www.millennium-towers.hu www.caimmo.com

17,000 18,600

offiCe gARden iii 75 www.officegarden.hu

16,922 18,500

6

76

16,644 17,310

9

1,093 5

6 254

14–15.50 2,500 HUF

CoRvin one 77 –

16,352 17,867

7

380 5

6 A

A A

millennium toWeR i 78 www.millennium-towers.hu www.caimmo.com

16,300 18,800

7

245 5

6 254

15.50–17

16,200 17,000

9

A

3

6 222

A A

7

346 5

6 320

A A

8

297 3

6 241

A A

A

Lufthansa Systems, EIT, National Instruments, 3M

✓

–

✓

✓

✓

✓

–

–

✓

A

✓

–

✓

✓

✓

✓

✓

Robertson Hungary Kft., www.robertson.hu

✓

A

DXC, Novartis

Nestlé, KLM

✓

✓

–

–

✓

✓

–

✓

✓

✓

–

✓

✓

✓

Cushman & Wakefield Kft., – www. cushmanwakefield. com

✓

✓

✓

✓

✓

✓

✓

✓

myhive thiRteen | gloBe www.myhive-offices.com/hu

79

gtC metRo www.gtcgroup.com

A

offiCe gARden i 80 www.grtgroup.hu

16,022 26,000

Business CenteR 140 81 www.cushmanwakefield.hu

16,000 23,800

82

infopARk e épület www.diofaalapkezelo.hu

15,800 15,900

7+3

250 5

6 279

A A

83

váCi gReens A épület www.vacigreens.hu

15,693 24,803

6

364 5

8 269

A A

A

✓

✓

✓

✓

✓

✓

✓

–

A

✓

–

✓

✓

✓

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

MBH Bank

✓

–

✓

✓

✓

✓

✓

A

✓

✓

–

–

✓

✓

✓

✓

–

✓

–

✓

–

–

✓

Cushman & Wakefield Kft., – www. cushmanwakefield. com

✓

✓

✓

✓

✓

✓

–

– CA IMMO (100)

✓

✓

✓

✓

A A

1138 Budapest, Váci út 193.

(1) 412-3680 leasing@gtc.hu

–

– LFPI group (100)

1117 Budapest, Alíz utca 1.

(1) 382-7020 grtgroup@ grtgroup.hu

✓

–

AIAS Kft. (A) DWS Grundbesitz GmbH (A)

1138 Budapest, Váci út 140.

(1) 268-1288 info.budapest@ eur.cushwake.com

✓

✓

Magyar Posta Takarék Ingatlan ✓ Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1/E (1) 888-4120 ingatlan@ diofaalapkezelo.hu

✓

✓

✓

VG 117 Ingatlankezelő Kft. (100) –

1138 Budapest, Váci út 117–119.

– office@robertson.hu

✓

✓

✓

–

✓

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

BAkeRstReet i. www.atenor.eu/en/projects/ bakery-3/ 15,606 16,572

84

85

váCi gReens d épület www.gtcgroup.com

15,600 A

kRisztinA pAlACe www.ersteingatlanalap.

86 hu/hu/erste-ingatlan-alap/ irodahazaink/krisztina-palace

15,500 18,000

Westend City CenteR 87 offiCes www.westendiroda.hu

15,400 16,700

88

infopARk g épület www.diofaalapkezelo.hu

14,600 14,600

5

346 5

7 399

A A

6

240 5

6 160

A A

7+1

✓

–

✓

✓

✓

✓

–

CBRE, www.cbre.hu; Colliers, www.colliers.hu

AON, Unilever, Ford, Everbridge, INNIO ✓ Jenbacher

–

✓

✓

✓

✓

–

–

✓

Cushman & Wakefield Kft., – www. cushmanwakefield. com

✓

ESTON International Kft. www.eston.hu

A

A

A

5

6 192

A A

Takarék csoport

400 5

7 315

A A

Veeva Systems, L'Oréal, Atenor Hungary

A

✓

✓

✓

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

89

eiffel pAlACe www.eiffelpalace.hu

14,500 32,000

skylight City 91 www.skylightcity.hu

14,459 38,800

CentRál udvAR 92 www.centraludvar.com

lAuRus iRodAházAk www.laurusoffices.hu

90

93

4

95

vigAdó pAlotA iRodAház www.bif.hu

–

✓

✓

✓

–

✓

✓

Cushman & Wakefield, – www. cushmanwakefield. com

✓

✓

✓

✓

–

A A

1138 Budapest, Váci út 121–127.

(1) 412-3680 leasing@gtc.hu

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1123 Budapest, Nagyenyed utca 8–14.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

–

A A

1062 Budapest, Váci út 1–3.

(1) 877-1000 alexandra.virag@ eston.hu 1117 Budapest, Magyar tudósok körútja 9.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

✓

✓

✓

✓

Bécsi Greens Kft. (100) –

1034 Budapest, Bécsi út 68–84.

(1) 785-5208 info@atenor.hu

– (100)

1055 Budapest, Bajcsy-Zsilinszky út 78.

(1) 473-1209 leasing@ horizondevelopment.hu

8

6 228

13 4

13,900 24,000

5

287 5

9 215

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

13,858 27,000

6–7

60 5

8 248

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

13,713 15,595

11

250 5

6 154

A A

13,605 16,486

7

A A

4 12

A A

13,600 15,402

7

– 5

6 266

A

alza.hu

✓

–

–

✓

✓

–

–

✓

✓

✓

✓

–

–

Horizon Development

–

independent poWeR supply

BiCyCle pARking ✓

550 5

✓

1117 Budapest, Hengermalom út 18–20.

(1) 785-5208 info@atenor.hu

✓

A A

A

AddRess phone emAil

✓

7 236

A

oWneRship (%) hungARiAn nonhungARiAn

Szerémi Greens Kft. (100) –

5

8

CoRvin 5 teChnology And sCienCe pARk – 94

–

✓

✓

Roseville www.roseville.hu 14,521 15,538

leAsing Agent, WeBsite

WAste ReCyCling

BAnk BRAnCh/Atm

16 1,890 HUF

in-house fACility mAnAgement

8 246

suitABle foR disABled people

400 3

gReen enviRonment

7

24-houR ReCeption And seCuRity seRviCes

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm) A A

Wellness And spoRt seRviCes

no. of elevAtoRs no. of pARking spACes 8 282

RestAuRAnt/CAfé

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

9

430 5

CuRRent mAjoR tenAnts

nAtuRAl light And AiR ventilAtion

gReen teChnologies

seRviCes

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

28 | 3

✓

✓

✓

✓

✓

✓

✓

✓

Gladiátor 1134 Budapest, I. Ingatlan Róbert Károly körút Befektetési Alap 54–58.

(100) (1) 451-4280 – –

–

– (100)

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 office@ addvalgroup.com

–

Erste Ingatlan Kft. (100) –

1103 Budapest, Kőér utca 2/A (1) 268-4300 info@ersteingatlan.hu

EPAM Systems Kft., AdNovum Kft., ✓ Affidea Magyarország Kft.

–

✓

✓

✓

✓

–

CBRE Kft.

✓

✓

✓

–

A A

1083 Budapest, Bókay János utca 44–46.

(70) 657-5698 kertesz.gabor@ iconrem.hu

A

✓

–

✓

–

✓

✓

✓

–

✓

✓

–

✓

BIF (100) –

1052 Budapest, Türr István utca 6.

(1) 332-2200 info@bif.hu

A

✓

–

✓

✓

✓

✓

–

CBRE, www.cbre.hu

✓

✓

✓

✓

– CPI Property Group (100)

1075 Budapest, Kéthly Anna tér 1.

(70) 478-0556 offices@cpipg.com

myhive gReenpoint 7 www.myhive-offices.com/hu 96

2,250 HUF

3

www.bbj.hu

6 200

A A

A

13,000 19,800

9

– –

6 221

A

2,200 HUF

13,000 14,600

7

A

5

5 230

100

12,997 27,500

8

130 5

óBudA gAte 101 www.obudagate.hu

12,900 13,942

6

modiAno 102 www.modiano.hu

12,855 13,587

RestAuRAnt/CAfé

Wellness And spoRt seRviCes

24-houR ReCeption And seCuRity seRviCes

gReen enviRonment

suitABle foR disABled people

in-house fACility mAnAgement

BAnk BRAnCh/Atm

✓

–

✓

✓

✓

✓

–

–

independent poWeR supply

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

120 3

leAsing Agent, WeBsite

BiCyCle pARking

no. of elevAtoRs no. of pARking spACes

A

euRopolis pARk 97 BudApest AeRozone –

gReen teChnologies

seRviCes

WAste ReCyCling

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

13,000 65,000

CompAny WeBsite

Special Report | 29

nAtuRAl light And AiR ventilAtion

no. of levels

CuRRent mAjoR tenAnts

RAnk

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

Budapest Business Journal | May 5 – May 18, 2023

✓

✓

✓

–

97

víziváRos offiCe CenteR www.vizivaros.eu

✓

✓

–

–

✓

2220 Vecsés, Lőrinci út 59–61.

– –

✓

✓

–

– CPI Property Group (100)

1132 Budapest, Váci út 30.

(70) 478-0556 offices@cpipg.com

A

✓

✓

✓

–

14–14.50 2,530 HUF

A

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

A A

1027 Budapest, Kapás utca 6–12.

– –

6 316

14.50–16 1,650 HUF

A

✓

✓

✓

✓

✓

✓

–

CBRE

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(70) 478-0556 offices@cpipg.com

250 5

5 247

A A

–

Indotek Group (100) –

1023 Budapest, Árpád fejedelem útja 26–28.

(1) 346-3000 indotek@indotek.hu

A

7 176

A A

✓

A A

1132 Budapest, Váci út 48.

(1) 266-6000 info.hungary@ codic.eu 1117 Budapest, Neumann János utca 1.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

BAlAnCe hAll www.balancehall.hu

103

104

infopARk A épület www.diofaalapkezelo.hu

v188 www.gtcgroup.com

7

5

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

A A

1138 Budapest, Váci út 188.

(1) 412-3680 leasing@gtc.hu

A

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

1118 Budapest, Rétköz utca 5.

(1) 309-0909 info@budawest.net

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– (100)

1117 Budapest, Gábor Dénes utca 4.

(1) 451-4760 –

A A

Epam Systems Kft., Affidea Group Kft, ESAB Kft, Howden Kft.

A A

1083 Budapest, Bókay János utca 44–46.

(70) 657-5698 kertesz.gabor@ iconrem.hu

A A

6

CoRvin 6 teChnology & sCienCe pARk – 250 5

6 147

✓

–

6 280

11

✓

✓

✓

A

12,412 13,460

✓

✓

✓

MNV

A

–

✓

✓

A A

216 5

–

–

–

8 221

6

✓

–

–

600 5

12,478 12,250

✓

✓

✓

7

infopARk C épület –

✓

✓

✓

12,749 14,241

106

✓

✓

✓

A A

3

✓

✓

✓

6 384

8

✓

–

–

300 3

12,680 27,000

✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

5+1

BudAWest iRodAház www.budawest.net

107

A

12,800 13,700

105

AddRess phone emAil

A A

quAdRA www.quadra.hu 97

oWneRship (%) hungARiAn nonhungARiAn

ATOS Magyarország ✓ Kft., Invitech

✓

–

✓

✓

✓

✓

–

CBRE Kft.

✓

✓

✓

–

108

mAdáCh tRAde CenteR www.madachtrade.hu

12,000 14,500

7-912

50 1

4 250

A A

A

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

– (100)

1075 Budapest, Madách Imre út 13–14.

(1) 268-1900 info@ madachtrade.hu

109

flóRián udvAR iRodAház www.bif.hu

11,952 28,500

4

16 1

6 240

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

1033 Budapest, Polgár utca 8–10.

(1) 332-2200 info@bif.hu

8+3

850 5

6 198

A A

✓

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

6

– –

6 469

A A

–

Mom Park Torony Kft. (A) DWS Grundbesitz GmbH (A)

1123 Budapest, Csörsz utca 45.

(1) 268-1288 info.budapest@ eur.cushwake.com

v17 110 www.diofaalapkezelo.hu

11,900 12,500

mom pARk toWeRs 111 www.cushmanwakefield.hu

11,700 13,500

E.ON

A

✓

✓

–

–

✓

✓

✓

–

✓

–

–

✓

✓

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

✓

–

✓

✓

✓

✓

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

gReen teChnologies

✓

✓

✓

–

–

✓

✓

✓

–

10,676 36,000

7

– –

A A

A A

A

A

A

A

A

A

A

A

–

A

A

A

A

(100) –

1093 Budapest, Czuczor utca 2–10.

(1) 451-4760 sales@wing.hu

noRdiC light tRio –

10,300 24,870

7

A

A

5

221

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

A A

1133 Budapest, Véső utca 7.

– –

millennium toWeR "h" épület 117 www.millennium-towers.hu www.caimmo.com

10,000 12,300

A

5

6 247

15.50–17

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

–

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 10.

(1) 501-2800 office@caimmo.hu

200 5

A A

20

–

A A

1025 Budapest, Pusztaszeri út 59–67.

(1) 412-3680 leasing@gtc.hu

✓

– (100)

1093 Budapest, Közraktár utca 30–32.

(1) 382-7560 office@ gamma-am.hu 1056 Budapest, Váci utca 81.

(1) 411-0442 vaciutca@ vaciutcacenter.hu

115

studium iRodAház www.wing.hu

116

pusztAszeRi offiCe pARk www.gtcgroup.com 117

RiveRpARk iRodák 119 www.riverpark.hu www.gamma-am.hu

váCi utCA CenteR 120 www.vaciutcacenter.hu

10,000 10,000

9,965

7

4

A

A

K&H

A

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

independent poWeR supply

✓

✓

ConvergenCE, www. convergen-ce.com

✓

BiCyCle pARking

–

✓

–

ConvergenCE, convergen-ce.com

WAste ReCyCling

✓

A A

10,700 11,602

–

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

4 29

Gazdasági Versenyhivatal, Közbeszerzési Hatóság, OTP Ingatlan Befektetési Alk Zrt.

✓

✓

BAnk BRAnCh/Atm

4

250 5

A A

AkAdémiA pARk offiCium 114 offiCe Building –

9

✓

in-house fACility mAnAgement

DKÜ, Doktor24, Friesland Campina, ODD, OTIS, Tech Mahindra, Infomix

✓

suitABle foR disABled people

A A

11,474 12,338

–

gReen enviRonment

A

6 144

Cityzen offiCes 113 www.cityzenirodahaz.hu

A

Aapogee (Kinstellar), Paks II., Knight ✓ Frank, MGYOSZ

24-houR ReCeption And seCuRity seRviCes

836

11,550 12,500

Wellness And spoRt seRviCes

25

ACAdemiA 112 www.academiaoffices.hu

CuRRent mAjoR tenAnts

RestAuRAnt/CAfé

8 141

CompAny WeBsite

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

no. of elevAtoRs no. of pARking spACes

8

250 5

RAnk

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

seRviCes

no. of levels

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

30 | 3

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

ConvergenCE (5) Europa Capital (95)

1054 Budapest, Akadémia utca 6.

(1) 225-0912 office@ convergen-ce.com

–

– KGAL (100)

1134 Budapest, Váci út 37.

(1) 225-0912 office@ convergen-ce.com 1026 Budapest, Riadó utca 1–3.

(30) 919-5233 dankowsky.gyorgy@ iconrem.hu

–

–

✓

–

GAMMA Properties Kft., gamma-am.hu

✓

✓

✓

–

Váci utca Center Kft. (100) –

✓

✓

✓

✓

8

80 5

4 133

A A

9,905 10,400

10

302 3

6 166

A A

A

✓

–

✓

–

✓

✓

Cushman & Wakefield Kft., www. ✓ cushmanwakefield. com

A

5+2 179

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

(100) –

1122 Budapest, Krisztina körút 6.

(1) 792-2611 –

3

3 145

A A

A

–

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

✓

–

A A

1134 Budapest, Dévai utca 26–28.

(1) 327-2050 office@robertson.hu

A

A

✓

–

✓

✓

✓

✓

✓

✓

121

BudA pAlotA http://optimabudapest.hu

9,852 15,000

8

122

dévAi iRodAház www.robertson.hu

9,685 11,700

9

9,469 15,290

5

819 5

5 185

11–13 2,350 HUF

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

– CPI Property Group (100)

1138 Budapest, Váci út 182.

(70) 478-0556 offices@cpipg.com

124

9,400 14,450

10

– 5

9 170

A A

A

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(70) 478-0556 offices@cpipg.com

AtRinovA 125 www.atrinova.hu

9,240 14,824

7

236 5

3+1 107

17.50 9.50

✓

– (100)

1054 Budapest, Bajcsy-Zsilinszky út 42–46.

(1) 382-5100 info@atrinova.hu

8

100 3

4 100

A A

–

– Bluehouse Capital (100)

2040 Budaörs, Puskás Tivadar út 4.

(1) 700-8013 office@ bluehousecapital. com

5

A

Blue CuBe www.cpigroup.hu 123

BAlAnCe Building www.balancebuilding.hu

126

teRRApARk next A www.terraparknext.com

9,174 9,907

KDB Bank, Agrárvállalkozási Hitelgarancia ✓ Alapítvány, Klebelsberg Központ

A

–

–

✓

✓

✓

–

✓

✓

–

✓

✓

✓

–

–

–

✓

✓

✓

✓

✓

✓

3

www.bbj.hu

Special Report | 31 gReen teChnologies

–

–

✓

✓

✓

–

4

180 5

8 260

14–15.50 3,250 HUF

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1037 Budapest, Szépvölgyi út 35–37.

(70) 478-0556 offices@cpipg.com

317

4 115

A A

✓

ConvergenCE, www. convergence.com

–

– KGAL (100)

1085 Budapest, Kálvin tér 12.

(1) 225-0912 office@ convergen-ce.com

✓

✓

ConvergenCE, www. convergence.com

✓

–

CBC Ingatlanfejlesztő Kft. (100) –

1027 Budapest, Horvát utca 12–24.

(1) 225-0912 office@ convergen-ce.com

✓

–

–

✓

–

Csörsz utca 1124 Budapest, Ingatlanfejlesztő Csörsz utca 49–51.

Kft. (100) – – –

–

Eston Zrt., www.eston.hu

–

1095 Budapest, GRAWE Ingatlan Máriássy utca 5–7.

Kft. (100) (1) 451-4760 – office@ grawe-immo.at 1114 Budapest, Szerémi út 4.

(1) 451-4760 sales@wing.hu

independent poWeR supply

✓

BiCyCle pARking

✓

WAste ReCyCling

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

✓

BAnk BRAnCh/Atm

✓

in-house fACility mAnAgement

✓

suitABle foR disABled people

A

– CPI Property Group (100)

gReen enviRonment

14.50–17 3,200 HUF

24-houR ReCeption And seCuRity seRviCes

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

4 100

Wellness And spoRt seRviCes

no. of elevAtoRs no. of pARking spACes

8

294 5

CuRRent mAjoR tenAnts

RestAuRAnt/CAfé

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

seRviCes

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Budapest Business Journal | May 5 – May 18, 2023

City CenteR www.cpigroup.hu 8,956 11,686

128

8,900 10,185

kálvin squARe 129 www.kalvinsquare.hu

8,850 9,382

127

szépvölgyi Business pARk www.cpigroup.hu

zengARden 130 www.zengardenoffices.hu

8,793 9,538

momentum offiCes –

8,707 11,000

131

10

A

Trax Retail, Alpiq Csepel, Alpiq Energy, DBK, ✓ GEOX, Philip Morris, Risskov, Wolf Theiss

–

✓

✓

8

A A

4 170

A A

Adria Port, Bázis Office Center, BuildEXT, HumanField, MádiLáncos Studio, Salzgitter, Mannesmann

7

400 5

4 142

A A

A

6

338 3

2 149

13 6

13

100 3

11 206

A

6 349

A A

A

–

–

✓

✓

A

✓

–

✓

✓

–

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

máRiássy ház 132 www.wing.hu

8,424 15,388

szeRémi iRodAház 133 www.wing.hu

8,424 25,303

offiCe CAmpus 134 –

8,330 13,082

3

246 5

8,130 8,565

7

500 5

4 177

17.50 1,800 HUF

6

500 5

A A

A A

4 108

A A

A

✓

–

✓

✓

✓

✓

–

–

✓

✓

A

–

–

✓

–

✓

✓

–

–

✓

✓

✓

Horizon Development

135

BudApARt doWntoWn www.budapart.hu/hu/irodak

6

infopARk B épület 136 –

8,100 9,500

kinnARps house 137 www.kinnarpshouse.hu

7,947 9,018

8

A A

138

7,914 8,452

6

480 5

5 152

16.50–18.50 5.69

szeRvitA squARe 139 Building www.szervita.com

7,800 25,000

A

9 240

A A

WING

Mbtech Hungary Mérnöki és Tanácsadó Kft., Invenshure Hungary Kft.

A

✓

✓

✓

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

Robertson Hungary Kft., ✓ www.robertson.hu, CBRE, www.cbre.hu

✓

✓

✓

–

– (100)

1095 Budapest, Gubacsi út 6/B – –

✓

✓

ESTON International Kft., www.eston.hu

✓

✓

✓

✓

BudaPart Silurus Kft. (100) –

1117 Budapest, Dombóvári út 25.

(30) 147-0421 sales@budapart.hu

–

– (100)

1117 Budapest, Neumann János utca 1.

(1) 451-4760 –

✓

–

– Kinnarps I Falköping AB (100)

1133 Budapest, Váci út 92.

(1) 237-1251 recepcio@ kinnarps.hu

–

–

– CPI Property Group (100)

1061 Budapest, Andrássy út 9.

(70) 478-0556 offices@cpipg.com

✓

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 leasing@ horizondevelopment.hu

✓

Appeninn Holding (100) –

1082 Budapest, Üllői út 48.

(1) 346-8869 info@ appeninnholding. com

–

Y.B.L. Lindner Kft. (100) –

1053 Budapest, Károlyi utca 12.

(1) 411-0434 yblpalota.titkarsag@ lindner-group.com

✓

✓

✓

✓

–

–

✓

✓

✓

AndRássy pAlACe www.andrassypalota.hu

140

ü48 iRodAház www.appeninnholding.com

yBl pAlotA iRodAház 141 www.yblpalota.hu

7,648 8,145

7,311 12,000

7

6

5

5

A

5

A

3

5 126

A A

5 56

A A

A

A

A

✓

✓

✓

–

–

–

✓

✓

✓

✓

✓

–

✓

✓

✓

1051 Budapest, Bajcsy-Zsilinszky út 12.

(70) 478-0556 offices@cpipg.com

✓

–

✓

✓

AddRess phone emAil

Gladiátor VI. Ingatlan Befektetési Alap (100) –

✓

✓

✓

✓

oWneRship (%) hungARiAn nonhungARiAn

✓

✓

✓

✓

–

–

–

✓

✓

–

✓

✓

✓

✓

✓

✓

teRRApARk BudAöRs (d5-8, d13 tömBök) 142 www.raiffeisenirodak.hu/ ingatlan/terrapark

7,288 8,367

3

infopARk i épület –

7,116 7,500

AiRpoRt City Business 144 pARk www.wing.hu

7,000 53,751

hungáRiA CenteR 145 –

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

✓

– (100)

1117 Budapest, Infopark sétány 1.

(1) 451-4760 –

✓

✓

–

Airport City Kft. (100) –

2220 Vecsés, Üllői út 807.

(1) 451-4974 ipari@wing.hu

✓

–

OTP Ingatlanbefektetési Alap (100) –

1143 Budapest, Hungária körút 17–19.

(1) 236-6400 –

✓

–

– CPI Property Group (100)

1139 Budapest, Pap Károly utca 4–6.

(70) 478-0556 offices@cpipg.com

✓

–

– (100)

1062 Budapest, Aradi utca 6–8.

(1) 299-2150 info@ neopropertyservices.hu

✓

–

– CPI Property Group (100)

1122 Budapest, Maros utca 19–21.

(70) 478-0556 offices@cpipg.com

A

(100) –

1065 Budapest, Nagymező utca 46–48.

(1) 877-1000 info@eston.hu

✓

–

Area Ingatlan Kft. (100) –

1139 Budapest, Váci út 91.

(30) 625-3552 office@ areaingatlan.hu

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(70) 478-0556 offices@cpipg.com

26 3

A A

A A

3

152 5

– 100

10.50 0.95

6,930 7,200

5

500 5

3+1 130

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓

–

146

6,900 8,243

7

442 5

3 216

14 2,500 HUF

A

✓

–

✓

✓

✓

✓

–

JLL, www.jll. hu

✓

✓

oktogon ház 147 www.oktogonhaz.hu

6,811 7,280

7

160 5

4 329

A A

✓

✓

148

6,741 8,891

8

– 5

4 69

A

3,000 HUF

✓

✓

CoRneR6 Business 149 CenteR www.eston.hu

6,658 6,802

8

527 5

A A

A A

BC91 150 wwww.bc91.hu

6,600 9,000

5

250 5

2 75

A A

A

✓

–

✓

–

✓

✓

–

–

✓

✓

6,500 7,325

4

340 5

2 80

14.50–15.50 1,950 HUF 2,040

A

✓

✓

✓

✓

✓

✓

–

–

✓

✓

A

✓

–

✓

✓

✓

A

✓

–

✓

✓

✓

✓

–

✓

✓

–

✓

✓

–

–

✓

✓

✓

independent poWeR supply

✓

–

6

143

✓

–

✓

2040 Budaörs, Puskás Tivadar út 7–11.

(1) 477-8490 irodaberlet@ raiffeisen.hu

–

A A

✓

AddRess phone emAil

✓

5 151

A

oWneRship (%) hungARiAn nonhungARiAn

Raiffeisen Ingatlan Alap (100) –

3

A

BiCyCle pARking

leAsing Agent, WeBsite

WAste ReCyCling

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

24-houR ReCeption And seCuRity seRviCes

Wellness And spoRt seRviCes

RestAuRAnt/CAfé

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

CuRRent mAjoR tenAnts

nAtuRAl light And AiR ventilAtion

gReen teChnologies

seRviCes no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CompAny WeBsite

no. of levels

Special Report net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

32 | 3

–

myhive thiRteen | xenteR www.myhive-offices.com/hu

A

–

✓

✓

✓

✓

✓

NEO Property Services Zrt., – www. neopropertyservices. hu

A

–

–

✓

✓

✓

✓

–

–

A

Eston, www.eston.hu

mARos BC www.cpigroup.hu

A

A

A

A

A

A

A

A

A

A

BAlAnCe loft www.balanceloft.hu 151

152

tWin offiCe CenteR –

6,163 7,212

5+1

A A

4 72

A A

A

–

–

✓

–

✓

✓

–

–

✓

✓

✓

–

A A

1135 Budapest, Szegedi út 35.

– –

153

honvéd CenteR www.wing.hu

6,068 10,256

3

308 5

4 66

22 5

Wallis, Hungarian Investment Promotion Agency

–

–

✓

–

–

–

✓

–

✓

–

✓

–

TCW Honvéd Irodaház Kft. (100) –

1055 Budapest, Honvéd utca 20.

– sales@wing.hu

154

BudA Business CenteR –

6,000 6,500

7

80 3

2 167

A A

A

–

–

✓

–

✓

✓

–

–

✓

✓

✓

–

(100) –

1027 Budapest, Kapás utca 11–15.

– –

5,913 7,944

7

161 5

2 65

13.50–14.50 2,800 HUF

A

–

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1016 Budapest, Hegyalja út 7–13.

(70) 478-0556 offices@cpipg.com

BudA CenteR www.cpigroup.hu 155

3

www.bbj.hu

226 5

2 87

15 2,200 HUF

A

5,700 13,800

6

A A

11 A

A A

A

✓

–

✓

–

✓

5,693 5,868

6

338 3

2 149

A A

A

✓

–

✓

✓

✓

RestAuRAnt/CAfé

Wellness And spoRt seRviCes

24-houR ReCeption And seCuRity seRviCes

gReen enviRonment

suitABle foR disABled people

in-house fACility mAnAgement

BAnk BRAnCh/Atm

–

–

✓

–

✓

✓

–

–

independent poWeR supply

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

9

leAsing Agent, WeBsite

BiCyCle pARking

no. of elevAtoRs no. of pARking spACes

5,739 8,119

gReen teChnologies

seRviCes

WAste ReCyCling

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CuRRent mAjoR tenAnts

Special Report | 33

nAtuRAl light And AiR ventilAtion

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Budapest Business Journal | May 5 – May 18, 2023

✓

✓

✓

–

pódium www.cpigroup.hu 156

váCi 1 157 www.vaci1.hu

158

máRiássy modeRn www.wing.hu

meRkuR pAlotA 159 www.merkurpalota.com gamma-am.hu

5,609 A

mBC Business CenteR www.robertson.hu

168

✓

✓

✓

✓

Eston Zrt., www.eston.hu

✓

✓

✓

–

WING Zrt. (100) –

1095 Budapest, Máriássy utca 5–7.

(1) 451-4760 info@wing.hu

✓

GAMMA Properties Kft., gamma-am.hu

–

A A

1065 Budapest, Nagymező utca 54–56.

(1) 382-7560 office@ gamma-am.hu

–

GAMMA Properties Kft., gamma-am.hu

–

(100) –

1062 Budapest, Andrássy út 100.

(1) 382-7560 office@ gamma-am.hu

✓

White Star Real Estate Kft., www.whitestarrealestate.com

✓

Erste Ingatlan Alap (100) –

2220 Vecsés, Lincoln út 1.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu 1082 Budapest, Futó utca 31–33.

(1) 236-6408 Ersek.timea@ otpingatlanalap.hu

5

88 3

2 459

12 9.94

250 5

3 A

A A

A

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

2 –

A A

A

–

–

✓

–

–

✓

–

–

✓

✓

✓

–

Báthory Utca Kft. (100) –

1054 Budapest, Báthory utca 12.

– sales@wing.hu

✓

ConvergenCE, www. ✓ convergen-ce.com

–

– Investum (100)

1133 Budapest, Árbóc utca 6.

(1) 225-0912 office@ convergen-ce.com

–

Propwin Kft. (100) –

1068 Budapest, Dózsa György út 84/A (1) 451-4760 sales@wing.hu

✓

– (100)

1062 Budapest, Andrássy út 12.

(1) 655-5860 office.leasing.hu@ avisonyoung.com 1016 Budapest, Mészáros utca 13.

– office@ redwoodholding.hu

6

eCodome 167 http://redwoodholding.hu/ ecodome-irodahaz

✓

8

5,361 10,174

5,007 5,629

✓

15–16

6

kRAusz pAlotA 166 www.avisonyoung.hu

–

3 123

5,384 6,122

5,040 14,370

✓

– (100)

87.500 3

CoRvin CoRneR 162 –

liget CenteR 165 www.wing.hu

1052 Budapest, Deák Ferenc utca 5.

(1) 473-1209 leasing@ horizondevelopment.hu

Horizon Development

14.75–15.50

5,390 13,226

5,272 5,559

1065 Budapest, Nagymező utca 44.

(70) 478-0556 offices@cpipg.com

4 23

the quAdRum 160 www.erstealapkezelo.hu

áRpád CenteR 164 –

– CPI Property Group (100)

165 3

5,390 5,850

BáthoRy utCA 12. www.wing.hu

AddRess phone emAil

5

AndRássy 100 160 www.andrassy100.hu www.gamma-am.hu

163

IngenieuRinGSterner, Prezi.com, Magyar Telekom, Apacuka

oWneRship (%) hungARiAn nonhungARiAn

A

5

A

A

✓

✓

MNV, Robert Bosch, Secops, Somfy, Finn ✓ Wellness

AG Mamas, Aurum, Billingo, CCE Hungary, Eurorisk, Fürgefutár.hu, ✓ EverDermLaser Center, JOBGROUP, VS-Faktorm, B+N Referencia Zrt.

–

–

–

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

A

3 66

A A

5

216 5

1 100

20 6

5

920 5

2 A

A A

5,000 8,500

5

150 5

3 93

A A

A

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

Redwood Holding Kft. (100) –

4,930 7,166

6

A

2 88

A A

A

✓

–

✓

✓

–

✓

–

Robertson Hungary Kft., www.robertson.hu

✓

✓

✓

–

A A

1012 Budapest, Vérmező út 4.

(1) 327-2050 office@robertson.hu

3

6 66

A A

–

Robertson Hungary Kft., www.robertson.hu

–

A A

1111 Budapest, Nagyszőlős utca 11–15.

(1) 327-2050 office@robertson.hu

6

A A

2 51

A A

–

ConvergenCE www. convergen-ce.com

–

Investum Kft. (100) –

1027 Budapest, Ganz utca 16.

– office@ convergen-ce.com

6

153 5

3 59

A A

–

CBRE, www.cbre.hu

✓

Alphagon Ingatlanfejlesztő Kft. (100) –

1117 Budapest, Dombóvári út 9.

(1) 374-3040 office.hungary@ cbre.com

BüRoCenteR West 169 www.robertson.hu

4,825 6,900

CAnAdA squARe 170 –

4,800 5,000

AlphAgon 171 www.alphagon.hu

4,663 6,407

6

4

217

A

3

A

A

A

A

Canadian embassy

A

–

–

–

–

–

–

–

–

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

Avison Young, www. avisonyoung.hu

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

gReen teChnologies

–

✓

–

✓

–

A

2

2 81

A A

A

–

–

–

✓

–

✓

–

Eston Zrt., www.eston.hu

✓

✓

✓

–

A A

1124 Budapest, Németvölgyi út 97.

(1) 877-1000 info@eston.hu

5

650 5

2 38

A A

A

✓

–

✓

✓

✓

✓

–

CBRE www.cbre.hu, Colliers www.colliers.com

✓

✓

✓

✓

A A

1024 Budapest, Margit körút 19-21.

(1) 266-6000 info.hungary@ codic.eu

3,326 3,551

6

400 5

2 –

A A

A

–

–

✓

–

–

–

–

–

✓

–

–

–

Optinvest Zrt. (100) –

1056 Budapest, Irányi utca 17.

(30) 196-0000 info@optinvest.eu

pAnoRámA ház www.indotek.hu

3,300 4,000

4

A

3

1 60

A A

A

–

–

✓

–

–

✓

–

–

✓

✓

✓

–

A A

1134 Budapest, Váci út 19.

(1) 688-1700 –

AusztRiA ház 177 www.ausztriahaz.hu

3,218

8

106 3

2 40

15–16

✓

Gamma Properties Kft., ✓ gamma-am.hu

✓

✓

✓

–

(100) –

1052 Budapest, Vármegye utca 3–5.

(1) 382-7560 office@ gamma-am.hu

deák pAlotA 178 www.deakpalota.hu

3,125 3,462

9

250–300 3

2 –

A A

✓

Cushman & Wakefield Kft., – www. cushmanwakefield. com

✓

✓

✓

✓

(100) –

1052 Budapest, Deák Ferenc utca 15.

(1) 411-2660 info@immobilia.hu

Westpoint Business 179 CenteR www.robertson.hu

3,015 3,500

10

A

3

2 29

A A

A

–

–

✓

✓

✓

✓

–

Robertson Hungary Kft., www.robertson.hu

✓

✓

✓

–

A A

1131 Budapest, Váci út 18.

(1) 327-2050 gabor.heredi@ robertson.hu

320 0.50

1 –

15 5

A

✓

–

✓

–

–

–

–

The Space Matters Lease Kft.

✓

✓

✓

–

Andrássy Palota Kft. (100) –

1062 Budapest, Andrássy út 66.

– sales@wing.hu

A

3

1 47

A A

A

–

–

✓

–

✓

✓

–

–

✓

✓

✓

–

A A

1066 Budapest, Mozsár utca 16.

(1) 301-0186 info@mozsartc.hu

A

–

–

✓

✓

–

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1117 Budapest, Budafoki út 209.

(70) 478-0556 offices@cpipg.com

–

Operator Estate Kft., www.mi9.hu

–

(100) –

1051 Budapest, Markó utca 9.

– koszeghy.erzsebet@ lokomotivhaz.hu 1013 Budapest, Krisztina tér 2.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

independent poWeR supply

–

BiCyCle pARking

✓

WAste ReCyCling

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

✓

BAnk BRAnCh/Atm

✓

in-house fACility mAnAgement

–

suitABle foR disABled people

–

gReen enviRonment

aiMotive Kft.

24-houR ReCeption And seCuRity seRviCes

A A

CuRRent mAjoR tenAnts

Wellness And spoRt seRviCes

AveRAge monthly Rent on ApR. 1, 2023 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2023 (euRo/sqm)

2 126

CompAny WeBsite

RestAuRAnt/CAfé

no. of elevAtoRs no. of pARking spACes

3

380 3

RAnk

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

seRviCes

no. of levels

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

34 | 3

szépvölgyi22 iRodAház – 4,584 8,000

n97 www.eston.hu

3,625 4,500

7

homeWoRk 174 www.homework.hu

3,379 3,754

175

iRányi pAlACe www.optinvest.eu

176

172

173

A

A

180

A66 iRodAház www.wing.hu

2,620 4,291

3

181

mozsáR tRAde CenteR www.mozsartc.hu

2,327 2,511

6

182

2,258 2,600

3

100 3

– 70

10.50–12 2,100 HUF

mARkó iRodák 9 183 www.mi9.hu

2,201 2,630

5+2

2,201 5

2 19

A A

BudAfoki Business CenteR www.bc209.hu

184

tABán www.diofaalapkezelo.hu

heRzog villA185 AndRássy 93. www.wing.hu

1,439 2,171

A = would not disclose,

NR = not ranked, NA = not appliacable

–

✓

✓

–

–

✓

–

✓

✓

–

✓

✓

✓

A A

ÁKK Zrt.

–

–

–

✓

✓

✓

–

–

✓

–

✓

–

A

5

1 10

A A

A

–

–

✓

✓

✓

✓

–

–

✓

✓

–

–

A93 Property Kft. (100) –

1062 Budapest, Andrássy út 93.

– sales@wing.hu

7

A A

A A

15–16.50

✓

GAMMA Properties Kft., gamma-am.hu

–

A A

1052 Budapest, Károly körút 6.

(1) 382-7560 office@ gamma-am.hu

4

300 5

1 –

A A

–

Lodge&Partners Investment Management, www. lodge-im.com

–

– AEW (100)

1061 Budapest, Andrássy út 11.

– ullmann@ lodge-im.com

4

ullmAnn pAlotA 187 ww.ullmannpalota.hu

–

–

✓

1 36

1,801 3,356

A

A

✓

–

1025 Budapest, OTP IngatlanSzépvölgyi út 18-22. befektetési Alap (70) 797-4113 (100) bartok.richard@ – iconrem.hu

200 3

6+2

1,470

A

✓

AddRess phone emAil

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1,900 2,000

k6 iRodAház 186 www.gamma-am.hu

A

oWneRship (%) hungARiAn nonhungARiAn

A

A

A

–

–

–

–

✓

✓

–

–

–

–

–

–

–

✓

–

✓

✓

–

This list was compiled from responses to questionnaires received by May 3, 2023, and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies’ voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14, or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

3

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

Special Report | 35

PM and FM Role Becoming Increasingly Enhanced Ever more sophisticated requirements from tenants and staff, concerns over rising utility prices, and the increasingly central role of ESG and well-being in the day-today management of offices have further enhanced the function of property and facility management providers.

GARY J. MORRELL

Property management and control of the building’s operations through FM have become crucial to reaching the lowest energy consumption and highest employee satisfaction, according to professionals from within the field.

László Orbán, CEO of Frame Group, sees the role of an integrated facility management provider as helping partners find the best and most cost-effective way to achieve flexibility of space, reasonable operating costs, and reduced environmental impacts.

“Facility managers are not only responsible for the smooth and efficient operations of complex FM solutions in the given property. As they are the ones overseeing complex integrated facility management of the property, they have the specific expertise and capability for identifying opportunities for quality upgrades or savings, either via readjustment of existing systems or implementation of the latest technical developments,” he argues.

“Together with respective property managers, they are capable of supporting investors with relevant information when deciding about investments that lead to more efficient and, therefore, sustainable operations of their real estate. This environment-friendly solution will be used for both “soft FM” and “hard FM,” in line with the signed service level agreement. The center of competence team supports all field and on-site colleagues to be able

Corvin Innovation Campus is operated for developer Futureal by Icon Real Estate Management. to find the most sustainable solution for customers,” Orbán adds.

A central role of PM & FM is facilitating the well-being of office staff and the implementation of Well Building Standard principles at scale so that organizations can measure and improve their health performance across multiple locations.

Robust Features

monitoring systems must be developed

by PM & FM. Their role is therefore crucial for the ESG market,” he notes.

“I think a high-end tenant needs high-end services. Also, sustainability and image are crucial for these clients; therefore, up-to-date information and ongoing, high-quality services are required. To fulfill these requirements, the office building staff must be prepared, and systems and frameworks must be implemented to be able to meet these needs and expectations,” he adds.

With regard to costs, Frame’s Orbán argues that ESG criteria should not increase lease or operational costs, as this is expected to be the basic standard requirement soon.

“Using our robust set of Well features and our proven process, organizations can map, measure and quantify their health and well-being efforts. With this data, they can measure their impact on people while also comparing their progress internally and against industry peers,” explains architect and Well assessor Holistic Approach Regina Kurucz.

“It is a matter of preparation and a ESG and well-being and the need holistic approach. We feel responsible for effective benchmarking and for helping our clients find alternative transparency of data have already ways to optimize TCO [total cost of opened new perspectives. In the coming ownership] levels while respecting years, these issues are seen as having all requirements. This is not only an increasing influence on property and valid for new premises but also for facility management. reconstructed ones. This is why “PM and FM will have an increased we decided to extend our activities role within the ESG office environment, focusing more on reconstruction, as the ongoing and transparent fit-out, and energetics besides management and monitoring of our strong IFM leg,” he explains data is one of the key factors of ESG Barta of HuGBC argues that, first of assessments,” says Zsombor Barta, all, everybody within an organization president of the Hungarian Green should understand why data monitoring Building Council (HuGBC) and and gathering is needed, in what a sustainability expert. form, and the level of detail. If needs “Investors are screening commercial and expectations are understood, buildings against ESG benchmarks, improved systems can be developed but to get ESG-related benchmarks, and implemented accordingly, data is needed. Data can be gathered, he believes. It is clear that especially and ongoing and transparent

for ESG, benchmarking and enhanced data management and gathering need to be implemented.

All investors and landlords are becoming more concerned with ESG, which is increasing the number of offices that are compliant with the standards.

It is quite visible on the market that certifications like Breeam, Leed, Well, and Access4You, are becoming inescapable in the view of Orbán, not to mention the EU taxonomy.

“An important new approach for ESG environmental indicators is to consider the whole life cycle of buildings and real estate. In other words, the environmental impact of the production of building materials, of transport and construction, and operation and dismantling must be taken into account,” he says.

“Energy efficiency is also the key to the operation of buildings and real estate: first, careful planning is needed to ensure that a building can be operated efficiently, and then to ensure that the optimized amount of energy used in its operation comes from a climateneutral source,” Orbán adds.

According to Icon Real Estate Management, there are currently no standardized ESG requirements, based on which it could be decided whether a building is ESG conforming. How a space is built and its technological solutions are used is one thing, but how the building is used is even more critical from an ESG perspective.

That means professional operation and tenant education are fundamental aspects, the company says.

36 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

Facility Management Companies paCkage inspeCtion

eleCtRoniC pRoteCtion systeM

yeaR establisHed no. oF Full-tiMe eMployees on apRil 1, 2023

House oRdeR pRepaRation ConstRuCtion ManageMent ColleCtion oF publiC utility Fees taking out insuRanCe poliCies eneRgy ManageMent, eneRgy audit 0-24 HouR expRess seRviCe seCuRing events, patRol seRviCe

✓

–

opeRation

✓

–

Real estate developMent

A

MaintenanCe

A

FinanCe ManageMent

A

inFRastRuCtuRal seRviCes

otHeR (%)

127,100 127,100 A

MajoR Clients in 2022

teCHniCal supeRvision

logistiCal and tRade FaCilities (%)

seRviCes

industRial FaCilities (%)

poRtFolio

oFFiCe buildings (%)

net Revenue FRoM FaCility ManageMent in 2022 (HuF Mln)

CoMpany Website

total net Revenue in 2022 (HuF Mln)

Rank

Ranked by total net revenue in 2022 (HUF mln)

oWneRsHip (%) HungaRian nonHungaRian

–

–

1993 8,290

Ferenc Ferenc Kis-Szölgyémi kis-szölgyémi (100) – – –

–

–

1999 567

AKKO Invest Nyrt. (100) –

lászló jános vágó Tamás Giller György Veres

1095 Budapest, Máriássy utca 7.

(1) 299-2150 sales@ neopropertyservices.hu

–

–

(100) –

Zoltán Mikó Zita Surányi Katalin Takács

1148 Budapest, Fogarasi út 5.

(1) 468-4080 info@future-fm.hu

– Relam Amsterdam Holdings B.V. (100)

andrei postelnicu, elena gifon, jamie McHugh – –

1097 Budapest, Gubacsi út 6 B/1.

(1) 919-0554 hungary.gws@ cbre.com

istván 1139 Budapest, jászberényi Pap Károly utca 4–6.

Péter Magasdi (30) 676-6369 Zoltán Hock info@kraft-fm.hu

b+n ReFeRenCia ZRt. www.bplusn.hu 1

neo pRopeRty 2 seRviCes ZRt. www.neopropertyservices.hu

3

FutuRe FM CégCsopoRt www.future-fm.hu

28,213 26,666 50 5

13,322 6,664

CbRe global WoRkplaCe solutions 4 kFt. www.cbre.hu

11,829 (2021)

kRaFt FM ÜZeMeltetési 5 és sZolgáltató kFt. www.kraft-fm.hu

A

A

MOL, OTP, Yettel, ✓ Budapest Airport

18

27

Magyar Telekom Nyrt., MOL Nyrt., WING Zrt., MÁV Zrt.

✓

✓

–

✓

–

✓

✓

✓

✓

✓

✓

✓

–

A

Budapest Airport Zrt., Schwarzmüller Járműgyártó és Kereskedelmi A ✓ Kft., Samsung Magyarország Kft., Givaudan Hungary Kft.

–

–

✓

✓

–

–

–

–

–

–

–

–

✓

–

✓

–

–

✓

–

–

1991 A

A

A

A

A

✓

✓

–

✓

–

✓

–

✓

–

–

✓

A

A

A

A

2010 231

8,841

8,634 30 45

5

20

BMW, Bosch, Audi, CPI

✓

✓

✓

✓

–

✓

✓

✓

–

–

✓

✓

–

–

–

2007 266

István Jászberényi (100) –

8,600

7,200 20 55

10

15

Audi, Bosch, ConvergenCE, Coca Cola, Adventum, Eston

✓

–

✓

–

✓

–

–

✓

–

–

–

–

2003 820

(100) –

21

–

TEVA, Electrolux, ✓ Blackrock, Henkel

✓

20

OTP Ingatlanbefektetési Alap, OTP Prime Ingatlanbefektetési – ✓ Alap, Bonitás Első Ingatlan Alap, BSZL Szabadkikötő Zrt.

A

A

top loCal exeCutive CFo MaRketing diReCtoR

addRess pHone eMail

3644 Tardona, Katus domb 1.

(30) 670-8752 iroda@bnref.hu

doMe FaCility seRviCes kFt. www.dome.hu 6

atalian global 7 seRviCes HungaRy ZRt. www.atalian.hu

5,600

795

20 59

iCon Real estate ManageMent kFt. https://iconrem.hu/ 8

4,827

2,173 45 35

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

✓

✓

–

✓

✓

✓

–

✓

✓

✓

–

✓

✓

✓

✓

✓

–

–

✓

gábor décsi István Molnár Attila Demeter

1023 Budapest, Lajos utca 28–32.

(1) 423-0000 info@domefsg.hu

2008 412

levente – velky, gyula Atalian Europe Zoltán ifsics S.A. (100) Levente Velky Ildikó Barcza

1138 Budapest, Váci út 191.

(1) 231-4020 ildiko.barcza@ atalianworld.com

2018 117

gábor nagy, HO-ME 2000 Zsolt kákosy, Vagyonkezelő Róbert Flück, Kft. (100) gergely varga – Gergely Varga Viktória Kiss

1026 Budapest, Riadó utca 5.

(70) 662-5639 info@iconrem.hu

3

www.bbj.hu

A

2,208 (2021)

A

A

A

A

A

A

A

oWneRsHip (%) HungaRian nonHungaRian

–

–

✓

–

✓

–

✓

–

–

✓

✓

–

–

✓

1989 132

A A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

1988 63

Lexholding 1027 Budapest, jános juhász Befektető Zrt. Csalogány utca 23.

– (100) (1) 457-6740 – – inforg@inforg.hu

András Sólyom (50), Gergely Lacsny (50) –

House oRdeR pRepaRation ConstRuCtion ManageMent ColleCtion oF publiC utility Fees taking out insuRanCe poliCies eneRgy ManageMent, eneRgy audit 0-24 HouR expRess seRviCe seCuRing events, patRol seRviCe

yeaR establisHed no. oF Full-tiMe eMployees on apRil 1, 2023

A

eleCtRoniC pRoteCtion systeM

A

paCkage inspeCtion

sMaRtFM ingatlanÜZeMeltető 11 kFt. www.smartfm.hu

A

opeRation

inFoRg ZRt. www.inforg.hu

A

Real estate developMent

10

2,231

MaintenanCe

9

Vodafone Magyarország Zrt., Libri Könyv✓ kereskedelmi Kft., K&H Bank Zrt., Magyar Suzuki Zrt.

FinanCe ManageMent

FRaMe gRoup kFt. www.frame.hu

top loCal exeCutive CFo MaRketing diReCtoR

addRess pHone eMail

Zsolt jakab, lászló orbán – –

1139 Budapest, Váci út 91.

(30) 676-1975 home@frame.hu

andrás sólyom – –

2,061

A

A

A

A

A

A

–

✓

✓

✓

–

✓

–

✓

–

–

✓

A

A

A

A

1,451

A

80 10

–

10

A

✓

✓

✓

✓

–

✓

–

–

✓

–

✓

–

–

–

–

2008 50

Tibor Karsai 1016 Budapest, tibor karsai (10) Hegyalja út 7–13.

Edina Szántó Rustler Gruppe (1) 434-2690 – GmbH (90) budapest@rustler.eu

47

3

A

✓

✓

–

✓

✓

✓

✓

✓

–

–

✓

✓

–

–

–

2001 58

– CPI Property Group (100)

gyula győri Tamás Pók Bea Déri

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 –

–

1999 85

Individuals (100) –

Csaba Halasi, szabolcs pataki, dóra papp – –

1112 Budapest, Brassó út 64.

(1) 248-3800 hq@millenia.eu

–

2011 31

AddVal Group Kft. (100) –

Hubert Mühringer Erika Puskás Rita Szabó

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 office@ addvalgroup.com

–

2014 22

– (100)

kata Mazsaroff – Kitti Salamon

1124 Budapest, Csörsz utca 41.

(1) 336-4200 budapest@ colliers.com

Cpi FaCility ManageMent kFt. www.cpigroup.hu 13

Millenia létesítMény14 ÜZeMeltető ZRt. www.millenia.hu

addval kFt. 15 www.addvalgroup.com

CollieRs neMZetköZi ingatlanÜZeMeltető 16 és keZelő kFt. www.colliers.hu

1143 Budapest, Gizella út 51–57.

(1) 471-2020 noemi.makkai@ smartfm.hu

2012 80

RustleR kFt. www.rustler.hu 12

Special Report | 37

inFRastRuCtuRal seRviCes

MajoR Clients in 2022

teCHniCal supeRvision

seRviCes

otHeR (%)

logistiCal and tRade FaCilities (%)

industRial FaCilities (%)

poRtFolio

oFFiCe buildings (%)

net Revenue FRoM FaCility ManageMent in 2022 (HuF Mln)

CoMpany Website

total net Revenue in 2022 (HuF Mln)

Rank

Budapest Business Journal | May 5 – May 18, 2023

1,342

1,230

1,020

505

1,342 50

–

1,230 20 80

A

A

100 –

50

–

–

–

48

–

CTP, GLP, MFB

–

Borsodi Sörgyár, DPD, UNICEF

2

A

–

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4

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

Socialite

Veszprém, Balaton Shine as European Capital of Culture Program Accelerates

of “Nemzeti dal” (“National Song”), said to have inspired the 1848-49 Revolution and War of Independence against the Austrian Empire. It’s generally believed Petőfi died in one of the last battles of that war.

Big Time Blues

In March 2019, the city of Veszprém, just north of Lake Balaton, was made a European Capital of Culture (ECoC) for 2023.

The program is officially called the VeszprémBalaton ECoC. Now, having weathered COVID19 since that announcement and despite the war in Ukraine, Veszprém-Balaton’s ECoC year is well underway.

DAVID HOLZER

The city, 115 km southwest of Budapest and around 90 minutes by car or train, is an ancient settlement with a population of approximately 60,000.

Lake Balaton, the internationally popular Hungarian Riviera (known to locals as the Magyar tenger or Hungarian Sea), is just 15 km to the south.

To showcase the diversity of cultures in Europe and celebrate shared cultural features, the EU appoints two ECoCs each year. According to a guide prepared by the European Commission for cities preparing to bid for the status, previous ECoCs have reported a measurably positive legacy.

Benefits include “The ECoC acting as a catalyst for a step-change in the development of a city or an area” and “A greater European and international understanding and profile, often seen in increased tourism and reputation.”

Speaking in September 2022, Veszprém Mayor Gyula Porga said, “We worked

In April, Veszprém hosted Hungary’s biggest blues festival to date. “We deliberately chose blues because it’s a niche genre in Hungary,” Mike explained.

Performers included Grammy Awardwinning harmonica virtuoso and Harlem native Sugar Blue, highly rated Britishborn guitarist Matt Schofield and The Magic Mosquitoz. The event was, by all accounts, a huge success.

“More than 3,500 visitors came and stayed in Veszprém for four days or so,” Mike told me. “We deliberately booked all the performers for two shows, so they had to stay at least one night in Veszprém. As musicians do, they found each other, and there were plenty of spontaneous jam sessions. Audiences could feel that the performers were really enjoying themselves.”

One of the most intriguing events, and one that’s close to Mike’s heart, is Inota 2023, which will be happening over the last weekend of August.

The decommissioned Inota thermal power plant, The event will be held in a factory complex with its three iconic cooling towers, built in the with three iconic cooling towers built in the 1950s, will host an audio-visual festival as part of the ECoC program. Photo by Daniel Besnyő.

1950s

very hard for this [and] it was important to include the Balaton-Bakony region. [….] The international judging committee really liked this idea of inclusion.”

The Hungarian government has certainly put its weight behind Veszprém-Balaton.

Speaking earlier this year, Minister of Regional Development Tibor Navracsics said the ECoC program could be a “catalyst for growth in leaps and bounds.”

Veszprém-Balaton’s year as a European Capital of Culture officially got underway on January 21, two days before the National Day of Hungarian Culture. This commemorates the birthday of Ferenc Kölcsey, who penned the Hungarian National Anthem: 2023 is his centenary.

The Program Director

In late April, I asked Friderika Mike, program director of the Veszprém-Balaton 2023 ECoC, how the year was going.

Mike, whose background lies in urban and regional development programs focused on tourism and community, was head of the bidding team that swung into action around the end of 2017. Back then, she was an external consultant.

When Veszprém won its bid to become a 2023 ECoC, she was invited to head up VEB2023, as the organizing committee is known. Now Mike and her team work not just with the city of Veszprém but with 116 municipalities, 12 partners,

that supplied electricity to a large part of Hungary for decades. and various artistic communities. With “This powerplant always had a symbolic around 3,000 events planned for the year, she and her team have their work cut out. role in the region,” Mike explained.

“Everyone had a relative who worked “Our year is based on micro-events,” there. But it had been empty for years, she told me. “We aim to have something only used for film and photo shoots.” happening most weekdays. Every two Inota 2023 is intended to be weeks, we host a different European city “Hungary’s biggest response-seeking, in Veszprém. We’ve been a member of definitive audio-visual festival” with UNESCO’s Creative Cities Network since an international line-up of artists, creators and visionaries […] often transcending interdisciplinarity to create so the focus is very much on music, uncategorizable, novel, innovative, fine art, and literature, whatever’s hybrid art forms.” characteristic of that city. Music, in Ultimately, the goal is to start a particular, is very important for our dialogue between the different artistic general cultural strategy.” disciplines and creative industries to When we spoke, Veszprém was develop a forward-looking way to use hosting Bologna, part of the Creative the complex at the foot of the towers.

Cities Network. Later in the year, it will On a more down-to-earth level, in welcome cities from Japan and Colombia. June, Veszprém-Balaon will celebrate Each month, Veszprém has at least the midway point of its ECoC year with one highlight event. In February, a celebration at the longest picnic table this was an international literature in Hungary, seating 3,000 people. festival focusing on young people between 14 and 25. Based on the concept “What does literature mean Keep up with Veszprém-Balaton for young people now?” the event at veszprembalaton2023. included workshops on disciplines such hu/en where there’s also an as songwriting and creating comics app to download. In summer, and welcomed guests from Austria, there will be a printed English the Czech Republic and Romania. language program in tourist March events focused on the 200th offices, hotels, and so on. anniversary of the birth of poet and revolutionary Sándor Petőfi, the author

2019,

4

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2023

Socialite | 39

Chamber of Commerce Corner This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the website of the organizing chamber. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

The NetherlandsHungarian Chamber of Commerce (Dutcham) Dutcham invites guests for an elegant yet casual 21st Annual Gala Dinner to celebrate the 21st year of the chamber and reaching “adulthood.”

Dutcham promises a night of exceptional gastronomy and entertainment, with company tables and mixed tables of 8-10 and food representing tastes historically connected to the Netherlands.

• When: Thursday, May 11, 7 p.m. • Where: Budapest Marriott Hotel, Apaczai Csere Janos utca 4, Budapest 1052 • Cost: Member single ticket: HUF 49,900 (incl. VAT), table of 10: HUF 469,900 (incl. VAT); non-member single ticket: HUF 62,900 (incl. VAT)

Swiss-Hungarian Chamber of Commerce (Swisscham)

Swisscham Hungary participated in the Connect Conference, where member companies spoke about the corporate culture of Swiss companies.

The chamber congratulates the Blue

Colibri team for organizing such a meaningful full-day conference with 800 people and thanks participants in the panel discussion from its member companies.

German-Hungarian Chamber of Industry and Commerce (DUIHK) The second online Journey Around the World: Women in International Business from the Global AHK Network by women@duihk with the Association of German Women Entrepreneurs (VdU) and the global AHK network took participants virtually to Iran and Saudi Arabia.

Topics of the online conversation were globalization and tension with localization, women in business, and the life and commitment of the speakers at the two foreign locations. The welcome and

introduction were given by Elizabeth Lehnich, co-chair of the International Commission of the VdU, and Barbara Zollmann, managing director of AHK Hungary. Afterward, Marie-Theres Thiell had a conversation with Susann Gerlach, CEO of AHK Iran, and Dalia Samra-Rohte, a delegate of AHK Saudi Arabia 30th Anniversary Gala The DUIHK marks a special celebration this year, with the highlight being its

30th Anniversary Gala Dinner.

Guests, including President of the Republic of Hungary Katalin Novák, will enjoy an evening of culture and entertainment, dancing, excellent food, and drink specialties.

• When: Friday, June 2, 7-11 p.m. • Where: Budapest Marriott Hotel, Apaczai Csere Janos utca 4, Budapest 1052 • Cost: Member EUR 150 per person; non-member EUR 280 per person; company table of EUR 2,000.

British Chamber of Commerce in Hungary (BCCH)

The American Chamber of Commerce in Hungary (AmCham)

The BCCH will hold its annual meeting on May 17, at which a new council and chairperson will be elected for a two-year term. The guest of honor will be Britain’s Ambassador to Hungary Paul Fox. New to this year’s annual meeting and open to non-members will be the presentation and Q&A session with Rolls-Royce’s managing director György Balázs, and the director of engineering at Jaguar-Land Rover Nevijo Mance, moderated by Randstad’s Petra Polgár.

This part of the event, scheduled for 5:45 p.m., marks the start of the networking and opens up the room to non-BCCH members.

• When: Wednesday, May 17, 4-8 p.m.

• Where: Kozmo Luxury Hotel, Horváth Mihály tér 17, 1082 Budapest • Cost: Free of charge for BCCH members; HUF 15,000 (incl. VAT) for non-members for the reception and networking after the annual meeting.

Although a typically tricky topic to navigate, the inadvertent violation of sanctions was not something businesses in Hungary had to worry about. That changed drastically on February 24, 2022, from which point rapidly changing regulations created an increasingly complex and challenging area to navigate. The AmCham conference Sanctions and Compliance: Are you fully prepared? will present the geopolitical realities of current and potential sanctions and their effects on the global and state economies as well as practical aspects of complying with sanctions as a business, including the risks and pitfalls one must avoid. Guest speakers will be Botond Feledy, director of Tipping Point Consulting, a geopolitical risk analyst and EU Expert, and Ramsey Jurdi, an international dispute, regulatory and trade compliance lawyer at DLA Piper with substantial experience in economic sanctions.

• When: Wednesday, June 7, 9 a.m.-1:30 p.m. • Where: To be confirmed • Cost: Members HUF 34,990 HUF (+ VAT); non-members HUF 45,000 HUF (+ VAT)

Canadian Chamber of Commerce in Hungary (CCCH) The CCCH is delighted to invite you to its upcoming 10th Canadian Bison and Salmon Dinner evening at the end of May, where it will say goodbye to spring and welcome the summer season. The event will occur at ÖbölHáz, near the Danube in South Buda.

Indulge in the finest Canadian delicacies, including fresh wild salmon and bison, and enjoy an authentic Canadian culinary experience. There will also be a chance to purchase raffle tickets to win exciting prizes.

The ambiance will be enhanced by live jazz music, providing the perfect accompaniment to the delicious cuisine.

• When: Wednesday, May 31, 6-11 p.m • Where: ÖbölHáz, Kopaszi-Gát 2, 1117 Budapest • Cost: Members HUF 43,900 HUF (+ VAT); non-members: HUF 56,900 (+ VAT)

Belgian Business Club in Hungary (BelgaBiz) BelgaBiz will hold its general assembly at the Embassy of Belgium on May 11 to discuss issues related to the club’s operations and future direction and elect the new members of the management and supervisory boards. A reception will follow the meeting. On June 10, BelgaBiz will introduce a new concept for the business club, a Family Day to be held at Budapest Garden. It promises to be a funfilled event for members and their families, with activities and entertainment for all ages. It will also be an opportunity to say farewell to departing Belgian Ambassador Siegfried Peinen, who has been a devoted club member as its honorary chairman.

BelgaBiz is grateful to the ambassador for contributing to its success over the years.

The French-Hungarian Chamber of Commerce and Industry (CCIFH) Celebrate the 150th anniversary of the unification of Budapest together at CCIFH’s large-scale Garden Party, inspired by the last century.

• When: Friday, June 23, 4-10 p.m.

• Where: Városligeti Műjégpálya és Csónakázótó (City Park Ice Rink and Boating Lake), Olof Palme Sétány 5, 1146 Budapest. • Cost: Members HUF 32,000 (+ VAT); non-members HUF 45,000 (+ VAT).

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