A contract for a significant real estate area in the suburbs of Budapest has been signed

As written in our previous article, in the first half of the year, a lease agreement was signed for 234,000 square meters of industrial-logistics area in the market of Budapest and its agglomeration. This gross demand level was 3 percent lower than the figure for the same period of the previous year, but can still be considered high, as it exceeds the figure for the first half of 2019 by 22 percent.

The contract indicates that this year's dynamics will continue to prevail, according to which the 40 percent rate of contract extensions within the gross demand was the most decisive in the first half of the year, compared to the 30 percent average of the past three years, and the rate of advance rentals was also 30 percent. As a result, 70 percent of the gross demand in the first half of the year was made up of lease transactions that had no (immediate) impact on the leased stock (the net market absorption). The continuation was similar in the third quarter, when the largest part of lease contracts was also made up of extensions, now with 58 percent, followed by new lease contracts with 32 percent. Extensions were present in only 9 percent, and pre-leasing contracts in only 1 percent.