Office
Although restrained delivery in recent years means there is little risk of oversupply in the Budapest office market, a rethinking of working habits and broader economic considerations caused by the international economic and political environment now raise questions about whether demand will meet supply, writes real estate editor Gary J. Morrell.
“ESG-compliance should not remain solely a marketing slogan. An interconnected, intelligent building management system enables PM and FM experts to reduce C02 emissions and achieve sustainability targets faster,” says Valter Kalaus, managing director of Newmark VLK Hungary.
“Social aspects have become more important than ever before. A proven ESG record will support an exit strategery and may add to the price. ESG aspects should be included in staff education, and issuers of green bonds, mainly developers, will be responsible for ESG compliance as well,” he adds. It will be interesting to see how demand and development strategies develop in the near future in the Budapest office market in response to the economic and political environment. Developers will need to improve their offers to meet the changing climate around tenant specification, sustainability, and ESG and meet the challenge of upward pricing pressure.
Read more in the Budapest Business Journal – May 6th 2022 edition. https://bbj.hu/
