Challenging Market Environment Means Limited Office Pipeline bbj.hu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bbj.hu Daily Mail and Mail on Sunday newspapers.
The industrial market is booming, with leading CEE regional industrial park operators and Hungarian developers participating in an increasingly active market. That has grown on the back of increasing logistics activity in the COVID-19 and post-pandemic environment and greater industrial space requirements needed to meet significant FDI demand, notably in the electric vehicle and EV-related industries.
Industrial and logistics developers are delivering ever more complex products in response to stricter ESG, EU Taxonomy and sustainability regulations. Further, a shift towards built-to-suit development gives greater scope to meet tenant specifications, beginning with consultations in the initial design phase and continuing throughout construction.
The Budapest office pipeline is low; developers are exercising caution, and new projects are being put on hold given the uncertain economic, geopolitical, and cost environment. However, ongoing schemes are progressing, despite these issues and concerns over letting, office working practices and even how much time is spent in the office.
The Budapest office pipeline is limited; builders are exercising caution, and new projects are not being initiated in an uncertain environment. Concerns include geopolitical issues, longer-term letting and demand, office working practices and the time spent in the office, rising development and construction costs, increasing maintenance and energy costs and more expensive debt finance. Despite this, ongoing projects are continuing.