New Budapest Business Districts Emerging

One of the major challenges for office developers in Budapest is to source suitably-sized, well-located development plots that provide visibility at a time when competition for such space is becoming more intense and driving up prices.

Advance Tower by Futureal.

By Gary J. Morrell

Developers need to weigh up the balance between the suitability of plots in terms of the necessary size for a financially viable class “A” office project, accessibility by public and private transport, visibility, the price of the land and the commercial potential of a given district or area of the city.

As a consequence, office hubs are developing outside the established business areas as developers examine new areas of the city with business and development potential away from those commercial districts where competition for space is more intense.

“Location is still one of the most important (if not the most important)

criteria of an office building and it will remain so in the near future,” says Valter Kalaus, managing partner of Cresa Hungary.

“You can have the best quality building in a poor location, it will not be as successful as a lower quality