3 replies to this topic

[Nyuszi]

From The Budapest Sun:

February 3, 2005 - Volume XIII, Issue 5

Budapest office rental rates still competitive

By Kester Eddy

BUDAPEST still one of world's cheapest locations for office space, screamed the press release last week from the local branch of real estate firm Cushman & Wakefield Healey & Baker (C&W/H&B).

Cutting out the spin - it could equally read Budapest 25th most expensive location in the world for office space- the Hungarian capital still represents good value for offices, despite climbing two places, up from 27th, last year on a list of 47 cities in the world's leading countries. This year's edition of Business Space Across the World (a C&W/H&B annual study) reveals prime office space in Budapest has total occupancy costs of €287 per square metre per year. This makes it good value against Vienna (€336/sqm/year), a mere snip compared to Paris (€945/sqm/year) and a positive give-away versus London's Mayfair, where the same space is a CFO-grey hairer at €1,571/sqm/year.

It all means, the cost of occupying prime office space in Budapest is less than 20% that of renting a similar area in London's West End (albeit without the entertainment potential of the latter location).

"This proves that as well as having some of the best quality office buildings in the region, Budapest also offers the best value for money in terms of occupancy costs," says Ward Stocker, head of Cushman in Hungary No doubt his opposite number in Prague is saying something similar, as the Czech capital comes in at slightly better value in 29th slot, at €270/sqm/year. In fact, while the Magyar capital beats Warsaw (20th slot, at €325/sqm/year), it is quite expensive against Bucharest (32nd), Zagreb (36th) and Bratislava (40th).

What of the future? Stocker reckons "stubbornly high" vacancy levels in Budapest are now falling thanks to increased interest from occupiers. That would normally indicate rising prices, but Stocker - who clearly would not want to put any potential new client off with such a suggestion - says a steady increase of new class A buildings coming on to the market, means "stable" rental values in Budapest for the next few years.

If not, there is "potentially more of a marked difference between central business district and non-central rental levels," he says.

In other words, higher prices in and around District V, with better rates in Budapest's non-central office spots.

[Nyuszi]

CWHD have other reports on their website's Market Reports section.  They all seem pretty Euro-centric and, unfortunately not free.

[Cotuit]

Does Budapest have a high-rise district?

[Nyuszi]

Cotuit, on Feb 3 2005, 07:51 PM, said:

Does Budapest have a high-rise district?

<{POST_SNAPBACK}>

Sort of.  The central business area in Pest is getting taller all the time.  There are some fairly interesting/attractive office spaces there, but nothing on a New York or Chicago scale of height.

But the other thing is that they have tons of old Stalinist high-rise aprtment complexes just outside the city center.  Think Co-Op City in Queens and you'll have an idea.