Budapest, 27th May 2008

Colliers International published its market report on the Budapest Central Business District (CBD), focusing on the office sub-market which includes Budapest’s district V. and Andrássy út to the Oktogon. This area can be considered for the starting point of the Budapest office market.  The CBD has a total stock of 179 000 sqm of modern A class space, with a current vacancy rate of 13%. Colliers forecasts the vacancy will remain stable throughout 2008 with stable asking rents at averaging 14,45 €/sqm/month. The future of the district will be exciting as the prestige buildings currently planned or under construction such as Palazzo Dorottya, Szervita tér and Exchange Palace become reality.  The V. district’s Main Street revitalization project will further reinforcing the specialization of the CBD market as the preferred representative, high-status office location, Managing Partner Michael Smithing summarized the report.

Originally the CBD was the favored location for banks and consulting firms, however most have now deserted the CBD for modern headquarters in outlying locations. With the help of Colliers’ market report we may gain insight how the CBD has been reborn as the preferred location for service companies requiring representative space and performing highly intellectual activities. 

This Knowledge Report will be the first in a new series of quarterly sub-market briefs. As Michael Smithing commented on it, “Colliers International has accumulated a wealth of knowledge during its 16 years of operation in Hungary. At the beginning of May our international real estate agency significantly expanded its research capacity with the appointment of Rémi Couture as Research Director, reinforcing the company’s position as a knowledge leader in the market. With the increasing maturity and sophistication of the Hungarian real estate market, Colliers recognized it was time to issue timely and specific sub-market reports and, over time, to develop a reliable and user friendly catalogue for the benefit of their clients”. The primary author of the CBD Knowledge Report is Krisztian Murai.

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The Knowledge Report is available free of charge from Colliers International at http://www.colliers.hu/content/view/60/57/lang,en/   
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