Budapest, January 29, 2025 – Accessibility, cleanliness, air quality, and the ever-present issue of heating and cooling operation and regulation. These are the most important factors for office users – according to the results of a tenant survey conducted by ICON. According to Zsolt Kákosy MBA MRICS, Director of Property Management at ICON, although there will still be more unused office space in 2025, high-quality offices are becoming more valuable, and those who want to can sign new deals with excellent conditions.
13.9% of the 4.4 million square meter Budapest real estate market is currently vacant, representing a 0.6% increase in vacancy rates over the past six months, according to the latest data published by the National Bank of Hungary (MNB). Moreover, with the demand levels seen in recent quarters and the volume of new space being delivered, further increases in vacancy are expected.
According to MNB data, 46% of contracts signed nationwide in the most recent period were renewals, significantly exceeding the average of 39% over the past six years (2018–2023).
However, ICON believes that the high rate of contract renewals is not because companies lack the resources for relocation and development. Most companies are simply waiting due to market uncertainties.
“Anyone looking to make a move now can secure a great deal. The general experience is that really prime locations are becoming more valuable. The most modern, best-located, and service-rich offices are already in high demand.”
–said Zsolt Kákosy MBA MRICS, Director of Property Management at ICON.
So, what should one consider when searching for a new office? The comprehensive B2B survey[1] conducted by the independent market research institute NRC among decision-makers of tenants in office buildings managed by ICON Real Estate Management shows that the most important factors for users when choosing an office are accessibility (by public transport, car, or bike), cleanliness, air quality, and the work of the concierge service. The regulation of heating and cooling systems, which is always a sensitive point in any community, also ranks highly on the list.
“At ICON, we consider it crucial to understand our tenants’ opinions – and we recommend that everyone do the same. As an employer, it’s worthwhile to assess the needs of employees before moving, to identify the key factors that we need to prioritize when choosing a new office.”
– said Zsolt Kákosy.
It is therefore worth exploring the options and needs before embarking on the search. One must not forget that the office is increasingly functioning as an HR tool and contributes to enhancing employee satisfaction.
[1] The qualitative and quantitative research conducted among decision-makers of tenants in office buildings managed by ICON Real Estate Management was carried out by NRC Ltd. The qualitative research sample size: 19 companies with online in-depth interviews, conducted from May to August 2024. The quantitative research was carried out through an online questionnaire. Sample size: 107 respondents, data collection period: August – September 2024.
