Budapest City Report Q4 2012



Budapest City Report Q4 2012


The Jones Lang LaSalle City Reports cover key trends in the economy and recent trends in the investment, office, retail and industrial markets.
For more details check out the full version of the Report  



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Industrial Market

Why Tri-City? 
Improving transportation network and good connectivity 
Access to the A1 motorway, the expanding ring road 
Regular and frequent flight connections with Polish and major and secondary European cities 
Improving railway connections with the major Polish cities, the urban fast railway, and the modernisation of the E65 railway line from Gdynia to Warsaw (by 2014) 
Developing seaports in Gdańsk and Gdynia 
Strong economy 
The Tri-City’s population is 748,000 people and the metropolitan area is home to more than 1.2 million people 
19,600 registered unemployed, which equates to a 6% unemployment rate 
Economy geared towards high technologies: outsourcing of business services, finance and IT in particular 
High quality labour force 
One of the major academic centres in Poland (28 higher education institutions, numerous research and development centres) 
Developing research, science and innovation centres 
95,000 students in theTri-City 
23,000 graduates per annum, including 6,000 finance and 900 IT graduates 
In addition to fluent English, which is a market norm, 68% of students speak German, 30% one of the Scandinavian languages, 15% Spanish and 12% Italian (according to a Hays Poland survey) 
Support from the municipal authorities and other institutions 
Investor Assistance Centre 
Special Economic Zone 
Gdańsk Scholarship Scheme 
Numerous institutions supporting the business sector locally, e.g. the Pomerania Development Agency, InvestGDA 
High quality of living 
Seaside location 
A city of vast cultural heritage and significant leisure facilities 
Developed residential and office markets, a variety of shopping and leisure centres, as well as a wide hotel base 
Planned road, seaport and airport infrastructure improvements 


447,000 m2 of distribution facilities were leased in Warsaw and its suburbs in 2012 (33% of total take-up in Poland), down 28% on 2011. Net take-up (excluding renewals) amounted to 264,000 m2. The major share of demand was focused in the suburbs of Warsaw with almost 229,000 m2 of space leased, whereas in Warsaw’s inner city, occupiers signed deals for 34,000 m2 (net take-up)..


The total existing warehouse stock in the Warsaw area amounts to over 2.5 million m2. Consequently, this is the leading region in terms of stock (35% of warehouse space in Poland), of which the majority of warehouse parks are located in the Warsaw suburbs (1.98 million m2). Parks built within the Polish capital city amount to 542,000 m2.


Warsaw and its suburbs are characterised by a relatively high vacancy rate. Within the city, approximately 91,000 m2 remained unoccupied and vacancy stood at 16.8%. In the suburban zone, the vacancy rate was slightly lower and reached 14.2% (281,000 m2 of non-leased space). In 2011, these rates stood at 12% and 17% respectively.


Warsaw and its suburbs create a diverse market in terms of rents. Warsaw’s city market is dominated by small business units (facilities combining warehouse and office space) where effective rents range from €3.60 to 5.30/m2/month. Significantly lower rents are recorded for parks in suburban areas with typical big-box warehouses at between €2.20 and 2.80/m2/month.



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      the report


Mateusz Iłowiecki
+48 668 282 616
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