Rents have dropped 10-30% on the office market

Some of the agency’s most important deals of 2009 were the lease extension for Deloitte (Park Atrium Office Building, 5,000 sq m), Cognizant International servicing center lease (Arena Corner, 1,300 sq m) and Astron Informatika’s move (South Buda Business Park, 1,100 sq m).

During the course of 2010, an expected 171,480 sq m of new office space will be handed over. Colliers International Hungary’s market research team does not expect the amount of transactions to increase, rather a low level of market activity with a slight increase forecast for the second half of the year. The situation can be improved in the short term by the appearance of shared service centers on the Budapest market, which will no doubt have a positive effect on the takeup rate as well. A further plus is the continuous interest in Hungary regarding the outsourcing of business activity, as the financial crises affected this territory the least.

„Based on Colliers International’s experience from the past year, for 2010 I would recommend large tenants to secure pre-leases for built-to-suit buildings rather than moving office to existing space and for owners I recommend short-term „many a little makes a mickle” leasing strategy – summarizes his market analysis experience Miklós Saly, Director of the Office Leasing Team at Colliers International’s Budapest office.