The office market in Hungary mainly refers to the capital, since 95 per cent of quality office buildings are located here. The size of commercial office space in Budapest reached 2 million square metres last year which, although sounding much, is still little compared to a large European city (for instance, 3-4 times as many offices operate in Vienna, in neighbouring Austria). Although 12-15 per cent more office buildings have been constructed in recent years, there are still large reserves in the system. If there is the demand, construction could commence on a further half million square metres within the next six months.
The Budapest market is still considered reasonable - the cost of an office with identical facilities is double in Bucharest and three times more in Moscow. In particular, investors from Asia, who do not like taking too large a risk, prefer buying in this region. Contrary to what many believe, offices are not built simply for the construction companies to collect the rental after a well-done job. Rented-out buildings represent commodities with excellent revenue and are highly in demand, mostly on the part of investment funds with a high degree of liquidity. Construction has often just begun when a buyer appears on the scene.
In addition to an investor, a good tenant is the other main character in the story - it is he who is able to improve the image formed about an office building. A prominent tenant of good reputation - the anchor tenant - attracts others, partly his own business partners and partly those who think that the proximity of a highly reputable company casts a good light on themselves.
New office buildings have pillar frames and enormous glass surfaces. The large glass walls represent efficiency, since due to natural lighting employees can work more effectively. A common characteristic feature is that they are nearly all Category A. This means they are built not only at a high technical level but are also at favourable locations in terms of transport. In Budapest such locations include Váci Road and its immediate vicinity - where two-thirds of offices are situated - the Danube bank with the popular Roosevelt Square or the Bank Center.
Along the underground lines is also attractive. For example, one of Budapest's most impressive office developments, the Arena Corner Office Centre within the concern of Orco Property Group, is adjacent to 'Stadionok' underground station. It is here that, after the appearance of an international bank and a multinational mobile company, this year's largest banking office rental is being effected by the relocation of another bank. ORCO is continuing development of the majestic building of the Parisien Department Store, which opened in 1910 on Andrássy Avenue. The avenue is now a part of World Heritage and as the building is a listed monument it stands in contrast to the glass palaces. ORCO is restoring the building to its original splendour and preserving its original function, while offering luxury offices on the top five storeys to real office connoisseurs. Opening is scheduled under the name of PDS in the first quarter of 2009.
Companies operating large fleets are increasingly taking to locations on the edge of the city which have good transport links, say in Budaörs or near the M0 ringroad, since for them parking facilities and smooth transportation are vital. As for offices in Buda, it is no surprise that they have been increasing in value. It certainly matters whether the manager of a company, who is likely to live in Buda, has to struggle across a bridge in the morning rush hour or simply roll down a hill to an office near his or her residence. Beside location, technical parameters are also increasingly gaining in importance. The range is wide and includes broad band internet connection, air conditioning, security entry and guarded car parks.
"The operation of companies has basically changed in recent years," says Szabolcs Böröck, marketing and sales manager of Biggeorge's- NV. "Organisations have become flatter, classic middle management has disappeared and project-based work is on the increase. Due to that, demand is moving from the cell towards open-space offices, and international trends also reflect this. At least 70 per cent of tenants are looking for open-space offices, the small separate office system is beginning to disappear."
That, let's face it, is bad news for most of us. After all, it is more comfortable if we can arrange our own little business in our own little den. However, time is slowly passing this by. Nevertheless, in the city centre there are some old buildings converted into office centres which, due to being protected, can only be altered in a limited way. While one person requires some 15 square metres of space in such an old building, this figure is around 10-12 in a reputable Scandinavian company office. And should someone's good fortune lead to working for a costeffective large American company, he or she is lucky to get eight square metres