The View 7th edition

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even discounting the BTS Telekom HQ the rate was 73%. Along with the five new completions during H1, the total new supply in 2018 amounted to 230,600 sq m – nearly tripling y-o-y while also marking the highest annual new supply volume since 2009. Although the past year saw emerging challenges in the construction sector stemming from labour shortage and material cost inflation, there were few significant delays in office completions. The majority of projects committing to handover during the year did indeed open their gates, and ca. 90% of the total new supply volume that we expected a year ago successfully came online. Lookingahead, thedevelopmentpipelinecomprises 130,900 sq m of new office supply due for completion in 2019. The forecast for the year has showed great uncertainty over time, as construction bottlenecks as

well as timing reconsiderations for planned projects have delayed certainty of the final number. A year ago, the anticipated supply volume for 2019 totalled 251,000 sq m – this has halved by now as several developments have lagged compared to their initial timelines. The general delay trend has also affected the pipeline for 2020, yet newly emerged smaller developments with shorter planned timelines have kept the yearly anticipated volume in balance at ca. 250,000 sq m. In total, there is ca. 484,000 sq m of office space under construction across Budapest. The Váci Corridor submarket retains its position as the top development destination in the city with 41% of the total ongoing project volume, followed by South Buda with 30%. Although the challenges stemming from bottlenecks in the construction sector remain in focus for the foreseeable future, an expected settling