Q3 2025
Following stagnation in the first two quarters, Hungary’s GDP growth in 2025 is projected to range between 0 5% and 1 0% according to Colliers. Inflation reached 4.3% in September, driven primarily by service and energy prices. In mid-October, the EUR/HUF exchange rate hovered around 392 after a period of strengthening, influenced mainly by Hungary’s still high interest rate environment. Despite the weak economic performance, the labour market remains relatively tight, with the national unemployment rate at 4 4% at the end of August In contrast, Budapest continues to show stronger, though gradually weakening labour market performance, with unemployment around 3.6%.
Source: Colliers, BRF
Overall tenant activity declined on an annual basis in Q1–Q3 2025, with total leasing volume down 5% year-on-year (314,891 sqm vs 331,521 sqm in Q1–Q3 2024) However, net take-up which reflects new demand increased by 7 5% compared to the same period last year (161,539 sqm vs. 150,282 sqm) The growth in net take-up was primarily driven by the increased volume of pre-lease, which in turn was attributable to one major transaction
In terms of deal structure, lease renewals accounted for only 41 4% of transactions in Q1-Q3 2025, a decrease of 6 percentage points year-on-year Concurrently, the share of net take-up increased by 6 percentage points, reaching 51 3%
The total market vacancy rate increased in Q3 2025, rising by 0 6 percentage points quarter-on-quarter to 13 4% This was primarily driven by negative net absorption of 30,042 sqm.
On an annual basis, the vacancy rate declined by 0.6 percentage points The speculative vacancy rate stood at 16.8% at the end of Q3 up 0.9 percentage points quarteron-quarter, but down 0 5 percentage points year-on-year
Looking ahead, the total speculative office pipeline under actively construction and scheduled for delivery by the end of 2027 amounts to 85,762 sqm. The Váci Corridor dominates this pipeline, contributing 69% (59,391 sqm) through projects such as H2O Phase 2, Centerpoint III The remainder comprises smaller-scale developments scattered throughout the city
No new office buildings were completed in Q3 2025. In Q1, two speculative office developments were delivered: the Rhodium Office Building (2,807 sqm, 90% vacant) and Wagner Palace (2,253 sqm, fully let).
Rental levels remained stable or experienced only slight increases across most categories. Prime headline rents stood at €25 5/sqm/month at the end of the quarter Over the past year newly delivered office buildings recorded headline
in
ranging between €19–21/sqm/month
rents for Category “A” buildings reached €17 1/sqm/month, while Category “B” stock averaged €12.8/sqm/month, reflecting the continued premium placed on quality and modern specifications.
Office Market
Outlook
The Hungarian office market remains tenant-driven, with headline rents expected to stay broadly stable. A key development is the repositioning of older office stock to align with evolving tenant needs, stricter ESG standards, and in some cases the functional conversion of obsolete buildings to alternative uses Hungary’s office market in 2025 is set for a period of adjustment, as elevated vacancy rates persist amid muted occupier demand and ongoing governmental relocations that will release significant space back to the market While this may temporarily inflate vacancy levels particularly in central Budapest most developers are responding with caution, focusing on pre-leased or owner-occupied projects and ESG-compliant refurbishments. Flexibility remains a top priority, with occupiers favouring shorter lease terms and hybrid-ready layouts. The “flight to quality” continues to shape leasing activity, as energy efficiency and sustainability become decisive factors in location and building choice
KRISTÓF TÓTH
Head of Research, Hungary Kristof.Toth@colliers.com
MIKLÓS ECSŐDI
Head of Occupier Services, Hungary Miklos.Ecsodi@colliers.com
Managing Director, Hungary Kata.Mazsaroff@colliers.com
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