The Budapest Research Forum sets out below its Q4 2022 industrial market snapshot

The total modern industrial stock in Hungary was 4,582,660 sq m at the end of Q4. The stock in Greater Budapest reached 3,137,750 sq m, while a further 1,444,915 sq m of industrial space is located in Regional Hungary.

In Q4 2022, the Greater Budapest speculative stock increased by five buildings, totalling 60,980 sq m, while in Regional Hungary, four new buildings were handed over, totalling 48,300 sq m. In the former, the largest new delivery was the INPARK Páty OKF building with 32,100 sq m of space, while in the regional market the new phase of CTPark Komarom was delivered with 18,300 sq m. In 2022, a total of 333,210 sq m of new industrial/logistics space was added to the Greater Budapest stock.

The vacancy rate at the end of Q4 2022 was 3.8% in Greater Budapest, a decrease of 100 basis points quarter‐ on‐quarter and an increase of 65 basis points year‐on‐ year. At the end of the quarter, a total of 120,140 sq m of logistics space was vacant, and there were 5 existing schemes with more than 5,000 sq m of availability. Regional Hungary had 71,900 sq m of vacant space, corresponding to a vacancy rate of 5%.

Total demand in Greater Budapest amounted to 222,720 sq m in Q4 2022, indicating a decrease of 7% year‐on‐ year. Annual leasing activity amounted to 679,725 sq m, 7% above the record volume registered in 2021. In Q4, take‐up excluding renewals reached 187,975 sq m, indicating an increase of 7% compared to the same period of last year. The largest transaction in the quarter was a pre‐lease agreement of over 118,000 sq m in CTPark Sziget, the largest ever recorded transaction in Greater Budapest’s industrial market. Due to this transaction pre‐ leases accounted for 55% of gross take‐up, which was followed by new leases with a share of 29%. Renewals accounted for 15% of gross take‐up, while expansions accounted for only 1%.

In the fourth quarter of 2022, 27 leasing transactions were registered in Greater Budapest, with an average transaction size of 8,250 sq m – five of them for more than 10,000 sq m. The majority of leases continued to be signed in big‐box logistics parks, with only five agreements registered in the city‐logistics stock.

Quarterly net absorption in Greater Budapest was 90,315 sq m in Q4, while annual net absorption exceeded 303,315 sq m, the highest volume ever recorded.

BRF