A major change in the office market has been brought about by the outbreak of the coronavirus. Not only has covid-19 rewritten the design of office interiors to ensure the safety of workers, with the average of 6-7 square metres per employee increasing, but telecommuting and hybrid working seem to be becoming more permanent. Landlords have sought to retain tenants through more flexible contract terms and higher design contributions.  

The uncertainty created by the war between Russia and Ukraine has been exacerbated by the ongoing energy crisis, which has slowed transactions in the office market. In this situation, landlords are working with tenants to rationalise their energy costs. The focus on ESG has become even more timely, as environmentally conscious and energy efficient solutions offer the potential to reduce tenant costs. The rent gap between modern developments and older buildings has widened further, while increased development costs are encouraging landlords to promote tenant engagement by 'greening' their existing older buildings. 

Having passed the 4 million sq m mark in the first quarter of this year, total modern office stock in Budapest now stands at 4,176,000 sq m, of which more than 80% is Grade A and B modern speculative office space, with the remaining 82,400 sq m owned. Four new office buildings of more than 82,000 sqm have been added to the capital's office market, with the handover of Millenium Gardens Phase 1, Budapest One Phase 2 and 3, Major Udvar and the privately owned Bosch Campus. Vacancy rates continued to rise, reaching 11% for the first time since 2016. The average premium rent in Budapest is EUR 24/m2/month, while the average rent for A-rated buildings ranges from EUR 14-17/m2/month. 

Average monthly rents

€ 14.00/nm – € 17.00/nm /hó

Total stock

4.176.000 nm

Vacancy rate


Currently under construction