The growth has already started – based on Cushman & Wakefield’s market research, in Budapest alone some 65,900 sqm new office space became available and another 257,000 sqm is under construction and will be delivered in the next two years. The research also reported that almost 400,000 sqm of office space is also in the pipeline, which is the highest level since the pre-crisis era. This increase in newly available space makes up approximately 12 percent of the current market size.
In the industrial market there is also room for development, the demand for quality space is 100% higher than the developments that were actually completed in 2016.
Based on analysis from Moody’s, the improvements in the economic performance are sustainable, and based on market predictions the growth will reach 2.5-3% of the total GDP, which is among the highest in the CEE region. The Hungarian government is committed to continue reducing the debt level that has so far dropped to 72% from 81% in 2011.
The developing stable economic environment has been one of the factors that has brought back groups of investor to the country that had been present and active prior to the 2008 crisis. In addition, according to Árpád Török, the managing director of TriGranit, new investor groups have also started to buy and develop property in Budapest.
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