A recently released market report from DTZ Hungary notes that in the first half of the year, industrial development has remained quite high despite the economic downturn. Since the beginning of 2009, 123,000 sqm of industrial space has been delivered to the market, the majority in southern Budapest.
However, DTZ points out that most of these projects were already under construction by the time the crisis hit in October, and that completions in the second half of the year will decrease significantly.
Meanwhile, headline rents are down by as much as 20 percent in some cases, to €3.5 to €5 per sqm per month, and vacancy rates are at the highest level since 2004.
“…the majority of the planned speculative developments having been put on hold. Beside the low level of handovers predicted for the second half of the year, the vacancy level will remain above 20 percent in the next 12 months if no larger deals happen.” — Éva Tamás, DTZ property adviser