The modern warehousing market in Budapest consists of 1 300 670 sq m. In 2007, 166 670 sq m of new warehouse space were completed. Modern industrial unit developments started in the mid 1990s. As a consequence most warehousing stock has been built over the last decade. Large international investors/developers such as ProLogis, Segro and Hungarian developers like Wallis, H.I.D. and Waberer’s dominate the development market.
According to Jones Lang LaSalle’s market research, the total take up in 2007 in the industrial/logistics parks was 20 per cent higher than in 2006. The highest level of activity was recorded in industrial parks around Budapest. In addition to this more and more warehouses have been leased within Budapest.
In 2007 several developments started and are under construction. These include Mester Park, Citypoint 9, InNove Business Park, DAN Park, Európa Center and Dél Pesti Üzleti Park.
During the second half of 2007 developers were most interested in the area next to the M3-M0 highway and around Ferihegy Airport. Consequently, more developments are expected in these areas this year.
Modern warehouse developments are not as common in the countryside. Most of the industrial sites are owned by the state. Built-to-suit developments here are only available with respect to produce halls and privately owned warehouses. The ProLogis warehouse in Hegyeshalom is the only modern warehouse in the countryside available for letting.
According to Krisztina Harasztosi, senior consultant of Jones Lang LaSalle’s industrial department, demand will be highly influenced by the tenders of FMCG and electronic manufacturing companies and by the needs of other foreign companies who are presently not on the market.
Rents have not changed much over the past few years and major change is not expected this year. In logistics centres, next to Budapest, monthly rental levels are below four euro a sq m for tenants with larger requirements. Within the capital rental levels are around 5-6 euro a sq m.
In 2008, 350 000 sq m of new warehouse is expected to be completed in and around Budapest because of the growing activity of developers. The vacancy rate is expected to increase slightly as a result and it is not inconceivable that rental levels will fall slightly.
