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News Release


Established retail destinations and evolving tenant mix in Budapest city centre

The Budapest High Street Retail market has further development potential according to Jones Lang LaSalle’s latest Budapest High Street Overview

Budapest,  19th November, 2013 – Budapest city centre has well-established, diverse retail high street destinations with various international brands in the mass, premium and luxury categories, according to the Budapest High Street Overview of Jones Lang LaSalle. The recently published market report covers the latest retail trends focusing in particular on the three main shopping streets of the city.

In those three high street destinations the retail offer is relatively homogenous (mass, premium or luxury) and targeted towards different customer groups. Luxury brands focus on Andrássy Avenue Váci Street and Vörösmarty Square are dominated by mass retailers and souvenir shops, while Fashion Street offers a strong supply of premium brands. As a result, the streets complement each other perfectly.

During the past 5-8 years, numerous new brands have entered the Hungarian market (e.g. Louis Vuitton, Gucci, Breitling, Moncler, La Perla, The North Face, etc.) either directly or, via franchise partners. Luxury and premium brands were looking for the most prominent locations and buildings, while mass market brands were more concerned by footfall levels. The completion of the ambitious Fashion Street project, along with new high street buildings and department stores (e.g. Il Bacio di Stile, Paris Department Store, Vörösmarty No.1, Váci 1), have transformed the downtown landscape and the perception of the high street as a desirable location.

Erika Pál, Head of Retail Leasing at Jones Lang LaSalle Budapest said: “Due to the conversion of the city center’s retail supply there has been an increasing interest in high street shopping, however, the tenant mix and supply still have to evolve in order to attract local customers who have been used to shopping centres.”

Other highlights of the report:
• Adequate supply (220 units) along the three retail high streets with an average 9.5% vacancy rate.
• The most competitive rental levels across CEE with a 60-90EUR/sq m/month prime rent.
• Evolving tenant mix due to the change of occupiers and market trends with a core group of powerful brands.
• The luxury department store, Il Bacio di Stile opened with nearly 40 brands under one roof.

According to Benjamin Perez-Ellischewitz, in charge of the Capital Market Team of Jones Lang LaSalle in Hungary, following the significant improvement of the high street offer in Budapest, international investors are getting more interested in this asset class with, as could be expected, a focus on the main international household names and the prime addresses.​