TOP REAL ESTATE EXECUTIVES
Uncertainty in the Office Market There is little risk of oversupply in the Budapest office market with restrained delivery in recent years from a relatively small pool of established developers, according to many analysts. That said, a reconsideration of working habits and time spent in the office, and the broader economic considerations caused by the geopolitical environment, raise questions about the amount of demand there will be to meet supply.
The Budapest One Business Park by Futureal.
By Gary J. Morrell In this challenging market environment, it seems certain substantial preleases will be required before a developer can acquire finance and start construction. Even so, financing on relatively favorable terms is still available for well-located, good-quality projects. However, there is expected to be less speculative development. At the same time, developers and office owners need to reconsider the conceptualization and design of office projects to meet the changing specifications of tenants and their staff and for implementation of the sustainability measures necessary for a project to be successfully leased, and to offer an exit strategy with a sale to an investor. Analysts consider that the new hybrid work pattern of three or four days in the office and one or two days in the home environment is now the new norm in the postpandemic environment.
“The new post-COVID office must be more attractive and more effective than working from home. Different aspects can contribute to this, including design, comfort, flexibility, technical equipment, and the people you work with,” comments Tamás Ádány, business development director at Horizon Development. “This approach is completely different from what we had two years ago. Most companies now see the office as a community space where colleagues can meet, form joint ideas, and become a team,” he adds. Hubert Abt, CEO & founder of New Work Offices, agrees that office use trends are changing. “By implementing hybrid workplace strategies, more corporations are switching their work policies from an office-centric to a human-centric approach. As a consequence, the headquarters of the company will not be the main place of work anymore; it will be a place for collaboration and meetings,” he argues.
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