MNB informs that the Hungarian office market will take 5-6 years to rebuild
According to a report by the Hungarian National Press Agency – MNB – it will take between 5 and 6 years for the office market to rebuild. The report states that demand in the commercial real estate market is declining, and only the industrial and logistics sectors are doing ok despite the crisis caused by COVID-19. According to MNB experts 50-60% of employees in Budapest are currently working from home, and office tenant demand has decreased by 40% in comparison to 2019. At the same time the amount of office space in 2020 will grow by nearly 400.000 square meters, pushing the vacancy rate up from 5 to 8 percent. The same report states that the hotel industry will take 3 to 4 years to recover back to the state from 2019.