Hungarian industrial real estate market
Hungarian industrial real estate market in Q3 -
CB Richard Ellis
Thursday, 25, October 2007 11:17:00 AM
The 3rd quarter of 2007 was significantly stronger in Hungary's industrial property investment market in terms of demand compared to previous quarters, CB Richard Ellis stated in its latest market report on Thursday. The gross take-up amounting to 71,700 sqm means an increase of 27% q/q. As all the quarters in 2007 delivered higher demand, up to date take-up figure shows an increase of sixty percent compared to the same time last year. Normally last quarters are the strongest on the industrial property investment market, which is likely to do the same this year as well, CBRE added.
If so, annual take-up can climb by 40- 45% year on year, and reach some 220,000 sqm in all 2007 which could set a new record on the Greater Budapest industrial investment market.
Supply growth stayed low; only 19,100 sqm new modern industrial space was added to the stock in Q3. There were many delays, which will raise the completion figure in Q4. 2007 up to date completion figure is on par with same period last year.
CBRE added though that this year already saw a significant and stronger activity outside of the Greater Budapest area. Strategic locations along motorways on the countryside saw higher speculative building activity and CBRE feels this trend will strengthen in the future.
Due to relatively low building activity coupled with high demand, vacancy is put again on a downward curve in Budapest and Surrounding, both. Vacancy level for the whole Greater Budapest area has slowed by 125 bp q/q, and some 270 bps since same period last year. This was the same in the forth subsequent quarter where the vacancy level shows decrease on an annual basis.
Rentals remained stable in Q3 as well. However, in the new mixed office-industrial schemes situated closer to downtown in Budapest submarket CBRE saw evidences for increasing rents. Therefore they quoted EUR 6.00-6.50/sqm/month as prime rent.
Source: http://www.portfolio.hu
Contact:
WW Property Investment Budapest for more information
CB Richard Ellis
Thursday, 25, October 2007 11:17:00 AM
The 3rd quarter of 2007 was significantly stronger in Hungary's industrial property investment market in terms of demand compared to previous quarters, CB Richard Ellis stated in its latest market report on Thursday. The gross take-up amounting to 71,700 sqm means an increase of 27% q/q. As all the quarters in 2007 delivered higher demand, up to date take-up figure shows an increase of sixty percent compared to the same time last year. Normally last quarters are the strongest on the industrial property investment market, which is likely to do the same this year as well, CBRE added.
If so, annual take-up can climb by 40- 45% year on year, and reach some 220,000 sqm in all 2007 which could set a new record on the Greater Budapest industrial investment market.
Supply growth stayed low; only 19,100 sqm new modern industrial space was added to the stock in Q3. There were many delays, which will raise the completion figure in Q4. 2007 up to date completion figure is on par with same period last year.
CBRE added though that this year already saw a significant and stronger activity outside of the Greater Budapest area. Strategic locations along motorways on the countryside saw higher speculative building activity and CBRE feels this trend will strengthen in the future.
Due to relatively low building activity coupled with high demand, vacancy is put again on a downward curve in Budapest and Surrounding, both. Vacancy level for the whole Greater Budapest area has slowed by 125 bp q/q, and some 270 bps since same period last year. This was the same in the forth subsequent quarter where the vacancy level shows decrease on an annual basis.
Rentals remained stable in Q3 as well. However, in the new mixed office-industrial schemes situated closer to downtown in Budapest submarket CBRE saw evidences for increasing rents. Therefore they quoted EUR 6.00-6.50/sqm/month as prime rent.
Source: http://www.portfolio.hu
Contact:
WW Property Investment Budapest for more information
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