Despite hype, Budapest high streets remain buyer’s market for retailers

While last year saw a large number of widely-hyped openings of luxury goods outlets on Pest’s higher-end shopping streets, the two most enviable addresses – Andrássy út and Váci utca – remain glutted with empty space waiting to be let. According to a survey by international consulting firm Ecorys Magyarország digested in napi.hu, vacancies on both Andrássy út and Váci utca have reached 2008 levels again, despite positive changes in the middle of last year.

More specifically, the survey found Andrássy to be currently underutilized by 17.4%, compared to 16.8% in mid-2009 and 17.6% in 2008, while the comparable numbers for the more established (but increasingly less swanky) Váci to be 6.5%, 5.2% and 6.3%.

Meanwhile, on the nearby Nagykörút, underutilization was only 8.1% at the end of last year, a drop from 12% in mid-2009, suggesting that Budapest’s landmark but still seedy ring boulevard is benefiting from the opening of lower-priced restaurants, used clothing shops and “100 forint stores” aimed at struggling consumers.