EUR/sqm/mth
Avg. Rent
EUR/sqm/mth
After a 0.6% growth in the national economy during Q1-Q3 2024, a GDP growth rate of approximately 0.7-1% is expected for the entire year. Parallel to the weakening exchange rate, domestic inflation increased to 4.6% in December and reached 3.7% for 2024. As of mid-January, the EUR/HUF exchange rate remains above the 413 level, primarily influenced by external factors, such as uncertainties surrounding U.S. trade tariff policies and the strengthening dollar, linked to the base rates set by the Fed and the ECB. Despite these challenges, the labour market remains tight; however, due to the economy performing weaker than expected, there has been a slight increase in the unemployment rate, which reached 4.5% by the end of November. In Budapest, the unemployment rate is even lower, around 3%.
Market summary DISTRIBUTION
Overall tenant activity experienced slight growth on an annual basis, with an 8% year-on-year increase (502,151 sqm compared to 464,570 sqm) in 2024. Throughout the year, net take-up—measuring the level of new demand—decreased by 20% compared to 2023 (190,730 sqm vs. 238,250 sqm), accounting for only 38% of total tenant demand. The decrease in net take-up in 2024 is primarily attributed to a 29% year-on-year decline in new transactions (149,009 sqm versus 208,604 sqm). Notably, the largest new nongovernmental deal in 2024 did not exceed 5,000 sqm. In terms of distribution, renewal deals (e.g, SAP, Ericsson) held the largest share (57.2%) in 2024, consistent with the trend seen in 2023.
The total market vacancy rate slightly increased in Q4, reaching 14.1%, representing a 0.77 percentage point rise on an annual basis. The speculative vacancy rate also climbed, reaching 17.5% at the end of the quarter—a quarterly increase of 0.2 percentage points and a yoy rise of 1.13 percentage points. This was mainly driven by the fact that 35% of the speculative office building stock delivered in 2023 and 2024 remains vacant.
The subdued level of new tenant activity in Q4 resulted in negative net absorption, with total occupied stock decreasing by 2,881 sqm. The subdued level of new tenant activity in Q4 led to negative
net absorption, with total occupied stock declining by 2,881 sqm. However, despite the delivery of 75,000 sqm of new speculative stock during the year, net absorption for the full year remained positive, totalling 47,667 sqm.
Tenants showed a stronger preference for buildings that are sustainable, energy-efficient, and compliant with ESG criteria. In such buildings, the speculative vacancy rate was 2.7 percentage points lower than the market average at the end of Q4 2024.
Looking ahead, the total speculative office pipeline through the end of 2027 amounts to 117,582 sqm, with Váci Corridor and Central Pest accounting for the largest shares—62,000 sqm and 26,800 sqm, respectively.
During the last quarter of 2024, one speculative office building was completed: Liget Center Vitrum (2,150 sqm), which remains 100% vacant.
Rents have shown stagnation or slight increases across various categories. Prime headline rent stands at €25.5/sqm, while new headline rent was €19/sqm at the end of the quarter. Average rents for category “A” buildings were €17/sqm, while category “B” buildings averaged €12.8/sqm.
