Office
The Budapest office market kicked off the year with a surge in leasing activity. Gross take-up soared by 24% compared to the same quarter the previous year, surpassing the five-year average for first-quarter results by an impressive 17%. Once again, lease renewals dominated the scene, constituting 53% of the gross take-up, maintaining a consistent trend from previous quarters.
Retail
As inflationary pressures eased, signs of economic recovery emerged at the beginning of 2024. Retail sales in Q1 saw a notable growth of 0.9% compared to the corresponding period last year. In 2023, only two small retail warehouses were completed, maintaining the overall size of Hungary's retail stock. Encouragingly, the Hungarian retail landscape will expand by 37,500 sq m in 2024. Concurrently, both tenants and landlords are prioritising refurbishments and sustainability initiatives.
Industrial
In Q1 2024, leasing activity dipped both nationally and in Greater Budapest. However, there was a notable shift towards net take-up, with new leases, pre-leases, and expansions making up 86% of the gross take-up in Greater Budapest. Stock extension slowed momentarily, with only one scheme delivered in Q1. Yet, a robust pipeline of projects totalling 703,320 sq m of industrial space is planned for completion by 2025.
