With today’s market conditions tenants are in a more vulnerable position than ever before. You can read some interesting market trends from Valter Kalaus, the managing director of Cresa. What would you recommend to a company who would like to move to a new office within 6-7 months from now? I would tell them there are in a very difficult situation. Almost mission impossible. Office buildings are fully let, the market is heavily dominated by landlords. Total vacancy rate is below 6%, on the Váci corridor it is 2-3%, and on the other main submarkets the demand is strong, there are many competing parties for available spaces. Occupiers are in a vulnerable position: the smaller because landlords cannot commit to 300-400 square meters, the larger only because few thousand square meter office spaces area not available on a short notice.

The Budapest office boom remains for the next three years, and by 2022 approximately 600.000 m2 new office space will be added. Though the employment market changes will influence the office market as well: the effect of trying to get the best people, leads to occupiers’ new approach to the office market looking for multifunctional areas instead of the open space office. In addition, office fit-out cost increased substantially with 20-30% to accommodate the new requirements. Despite the increased total modern stock, there is not enough modern office building to meet the Y and Z generation’s employee’s needs, which partly answers the question of office rent increased 25% in Budapest. These are the focus points of VLK Cresa’s recent market outlook. The significant changes on the Budapest office market are the effect of the employment market changes to a certain

What’s next for the office market? What do occupiers want? What effect would an economic slowdown have on development? Heads of the European offices of real estate advisory firm Cresa talked about business opportunities and risks, and the global political uncertainty at their annual conference in Warsaw. A slowdown, but no slump Europe is already experiencing the first signs of an economic slowdown that has so far had a limited effect on the office market, say several heads of Cresa’s European offices commenting on the situation in their respective countries. After Germany, this trend is most pronounced in the Netherlands. “Some companies, especially in the automotive sector and suppliers in the high-tech industry, are seeing their order books starting to run empty. As a result, some of our clients are preparing for a downturn in the market,” says Johan Martens, Director

At the CEE Property Forum 2019, held in Vienna on 18-19 September, was set as a goal to gather the leading decision makers of the European and CEE property world to discuss the major trends and future of their industry. CEOs, influential investors, bankers, advisors, developers, fast-growing proptech startup founders, architects, valuers from more than 30 countries. With the boom in tourism, the hotel market in the region offers a wealth of opportunities, while becoming an increasingly attractive asset for investors. Tourist needs are changing rapidly with the spread of low-cost airlines and accommodation services, but the CEE region is by far the best market for hotel developments. The conference provided an opportunity for cross-industry dialogue, panel discussions with European investors and a Central European banker roundtable. At the two-day conference, VLK Cresa was represented by Péter Takács, who has a unique

a&o Hotels and Hostels, one of the largest European hostel companies is about to establish a strong presence in Budapest, according to Péter Takács, Partner of VLK Cresa, who said that the chain’s 114-room, 412-bed hostel is scheduled to open in the city center of Budapest in March 2020 in district seven Csengery street. One or two months of delay could be possible due to the current lack of local construction capacity, but it is certainly not holding back the company from building out a strong presence in the longer term, planning with up to one thousand beds in the Hungarian capital. Their first property is owned by a&o, future properties will most likely be operated on a lease basis. To find out more click HERE 

There is a rapidly spreading new buzz on the real estate market: proptech. The Budapest Proptech Forum conference had a high interest which proves that we have to seriously consider this subject. The CRESA leaders participated at the conference and they reflect on this topic. How much does the market understand what proptech is? Valter Kalaus: This is a hot topic now for tenants, developers and landlords. Everybody is trying to understand what it means exactly for them, when and how much it would influence and change their areas in the near future. For most is not crystal clear yet what kind of applications and new technology-driven solutions exist and how these could benefit them. The conference provided a platform to discuss these topics and the various different views. How Cresa can help clients with proptech? Valter Kalaus: At Cresa we are prepared for

Europe’s largest hostel chain a&o is set to open its first property in Budapest. The company has been searching for suitable properties for a year and found the right building in the vibrant part of district 7, with the help of Cresa.

Built in the early 20th century the building was previously used for residential, office and lately student housing purposes and is now being transformed into a fully refurbished hostel featuring 108 rooms with 412 beds, attracting tourists looking for lower budget, but quality accommodation. The hostel with feature family and dorm rooms and is expected to open in Q3 2019.

Our latest expert article - that we made together with MN6 energy agency - about the WELL office concept was published in BBJ. The article focuses on a number of up-to-date and interesting issues about the WELL office concept. The article points out, among other things, what benefits a WELL agency offers to companies, how much it would cost to obtain such a qualification, and which office buildings in Budapest have received the WELL pre-qualification.

  Our colleagues are not only masters of the real estate market, but have a great talent for water sports as well. Our market experts performed fabulously at the recently ending 17th FINA Master World Championships swimming events and water polo games. Managing Director, Valter Kalaus reached stunning results in the 45-49 age group, collecting 7 medals and new records. Senior Project Manager, Miklós Tóth-Deme finished in 4th place in the 40+ category with his water polo team, Oázis SC. Valter Kalaus decided just one year ago to enter the FINA Masters Championships’ swimming events, recently organized in Budapest. The Seoul Olympics participant and former junior European champion prepared for the games with steadfast determination, which brought incredible results: he collected seven medals from all seven events. Kalaus performed with such skillful ease, reaching records - 100 m freestyle world record, 200

From a landlord’s perspective, shared service centers make near perfect tenants given their demand for large floorplates and typically long-lease periods. That makes it all the more important SSCs have good representation when looking for a property, says Valter Kalaus of tenant representation specialists VLK Cresa. Hungary has become a preferred location for SSC largely because of labor costs, Kalaus says, and a ready availability of young people with good language skills, especially beyond the relatively common German or English. And if SSCs like Hungary, landlords in Hungary certainly like SSCs. “With average leases between three and five years, SSCs tend to sign for a longer-term,” Kalaus explains. “The amount of IT infrastructure they put in makes them less likely to move, and that gives a feeling of greater comfort to the landlord.” The sector also represents a sizeable share of the overall office