June 30th, 2009

Ecorys reports rise in retail vacancy rates for downtown Budapest

Vacancies in downtown Budapest’s retail market are at a 9-year high, according to a fresh survey by real estate consultancy Ecorys Magyarország.

Although vacancy rates on Andrássy út (16.8%) and Váci út (5.2%) have fallen this year compared to 2008, the Nagykörút (Outer ring road) has seen a steep increase in idle properties, from 7.9% to 12% over the same period, tipping the overall rate into negative territory. The report did not offer a figure for the city as a whole.

The number of stores in central Budapest has been more or less the same over the past few years, with some more frequented, high profile streets such as Andrássy út seeing even a marginal increase.

Larger-sized commercial spaces, which are mainly sought after by international retail chains, are still hard to come by in downtown districts, although the new Fashion Street and the shopping and residential complex on Vörösmarty tér has filled some of the demand, Ecorys said.

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