The total modern industrial stock in Hungary was 5,090,570 sq m at the end of Q4. The stock in Greater Budapest reached 3,487,830 sq m, while a further 1,602,750 sq m of industrial space was located in Regional Hungary.

In Q4 2023, the Greater Budapest speculative stock increased by 40,370 sq m, adding four buildings to the stock, in Regional Hungary we registered only one expansion of an existing building with 2,880 sq m. In the former, the largest new delivery was Budapest Dock Szabadkikötő D2 with 13,770 sq m of space, while the expansion in Regional Hungary was in Tiszaújváros. Annual completions reached 358,010 sq m in Greater Budapest and 159,800 sq m in Regional Hungary.

The vacancy rate at the end of Q4 2023 reached 8.6% in Greater Budapest, a decrease of 140 basis points quarter-on-quarter and an increase of 470 basis points year-on-year. At the end of the quarter, a total of 298,560 sq m of logistics space was vacant in Greater Budapest, while vacant areas outside Budapest reached 91,310 sq m, corresponding to a vacancy rate of 5.7%. The national countrywide vacancy rate stood at 7.7% as of end 2023.

Total demand in Greater Budapest amounted to 313,810 sq m in Q4 2023, indicating an increase of 41% year-on-year. In 2023, total demand reached 630,760 sq m, which is a 7% decrease compared to 2022. In Q4, take-up excluding renewals reached 157,990 sq m. In 2023 take-up excluding renewals has reached 332,110 sq m, representing a 37% year-on-year decline.

In Regional Hungary the largest deal was a lease renewal with 10,560 sq m at CTP Székesfehérvár (SZF1), while in Greater Budapest the largest lease agreement was a lease renewal for 82,320 sq m at GLP Üllő Logistics Center. In Greater Budapest renewals accounted for 50% of gross take-up, which was followed by new leases with a share of 24%. Pre-leases represented 21% of the total leasing activity, while expansions only reached 6% in this quarter.

In the fourth quarter of 2023, 26 leasing transactions were registered in Greater Budapest, with an average transaction size of 12,070 sq m – ten of them for more than 10,000 sq m. The majority of leases continued to be concluded in big-box logistics parks, while in city-logistics parks agreements have been remained moderate.

In Q4, the net absorption of Greater Budapest amounted to 87,680 sq m, while the annual volume reached 186,340 sq m.

Source: BRF