The total modern industrial stock in Hungary amounted to 5,292,750 sq m at the end of Q3 2024. Greater Budapest reached 3,628,840 sq m, while the stock of Regional Hungary added up to 1,663,910 sq m. It is noted that one building (4,310 sq m) has been removed from the Greater Budapest stock due to a change in its function.
In Q3 2024, the speculative stock in Greater Budapest expanded with three buildings, totalling 68,770 sq m. Park 22 added 10,110 sq m, Duna Immo Park Logistics Center in Fót handed over 4,250 sq m, and WLP Ferihegyi Business Park V4 in Vecsés delivered 54,410 sq m. In the regional markets, two new handovers were recorded: VGP Park Kecskemét's E1 building with 17,880 sq m and Inpark Debrecen with 70,000 sq m.
The vacancy rate at the end of Q3 2024 increased to 9.6% in Greater Budapest, representing a 1.1 percentage points increase quarter-on-quarter, but is still 0.4 percentage points lower than a year ago. At the end of the quarter, a total of 348,340 sq m of logistics space was vacant in Greater Budapest, while vacant areas outside Budapest reached 109,730 sq m, corresponding to a vacancy rate of 6.6%. The national countrywide vacancy rate stood at 8.7% as of Q3 2024.
Total demand in Greater Budapest amounted to 109,750 sq m in Q3 2024, indicating an increase of 29% year-on-year. In Q3, take-up excluding renewals reached 62,330 sq m.
In the first three quarters of 2024, total demand amounted to 483,800 sq m in Hungary, showing a 11.5% decrease compared to the same period a year prior. Net take-up reached 384,980 sq m in the first three quarters of the year, indicating a 3% growth compared to the same period of 2023.
In Greater Budapest, new leases accounted for 52% of the total leasing activity in Q3 2024, while lease renewals represented 43%. Expansions accounted for only 3%, and pre-leases for 2% of the total leasing activity. The largest transaction of the third quarter was a pre-lease of 17,380 sq m in HelloParks Fót in Greater Budapest, while the largest transaction in the regional market was an 18,000 sq m pre-lease in VGP Park Kecskemét.
In the third quarter of 2024, 19 leasing transactions were registered in Greater Budapest, with an average transaction size of 5,780 sq m. The number of transactions was 46% lower than the data registered in the second quarter of 2024. Three of the transactions registered in Q3 2024 exceeded the size limit of 10,000 sq m. Majority of leases continued to be concluded in big-box logistics parks.
In Q3, net absorption amounted to 19,610 sq m in Greater Budapest, while in Regional Hungary it reached 112,080 sq m.
BRF
