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News Release

Full house at the JLL "Váci Road - Corridor to the Future" conference

Budapest, 2017. March 08. - At the beginning of March, at JLL's "Váci Road - corridor to the Future" event, developers and prominent real estate market experts presented Váci Road tenants ideas regarding the corridor's and its surroundings' urban and  infrastructural development, as well as other expected developments and trends in the office market.

The event was opened by Dr. József Tóth, the Mayor of the 13th district,  and was attended by Dr.  Balázs Szeneczey, City Development Deputy Mayor, Zoltan Nyul, the Strategy and Innovation Director of BKK, and Pál Baross, the Development Director of CEU who were among the guest speakers.

Ferenc Furulyás, JLL Managing Director said that "a niche event was organized at the office market since tenants and landlords can rarely meet in such a concentrated way, at one time, in one place." "Based on the success of the event and the positive feedback, we plan to organize similar conferences on other market segments so that as real estate market consultants, we can provide more space for dialogue between enterprises and developers" added Peter Würsching the company's Business Development Director.

After the 2008 real estate crisis the development potential of the Váci Corridor was put into question. Today, it is obvious that development hasn't diminished in the District 13. Currently, more than 90,000 sq m of new office space is under construction and numerous projects are due to be launched in the future.

The Váci Corridor is currently the largest and most popular office submarket in Budapest, and more than a quarter of the Budapest office stock is concentrated here. Rita Tuza, Head of Research at JLL revealed that the Váci Corridor submarket has always been the focal point for real estate developers; during the past 5 years 160,000 sq m of new office space was delivered in the Corridor which equals to approximately 45% of the total completion volume for this period. The dynamic growth of the office portfolio will continue in the coming years too; among the expected developments are Promenade Gardens, Agora Budapest, GTC White House, Balance Building & Loft, Advance Tower, the next phases of Váci Greens as well as the second phase of Atrium Park office building.

The area is very popular not just among real estate developers, but among companies and tenants too. In the past 5 years, demand has reached nearly 600,000 sq m and in 2016 one third of the annual occupational activity was recorded in the Váci Corridor. "Based on these numbers, our office leasing division dared to create this innovative communication platform between tenants and landlords, and I am very pleased that this event was sold out." - said Zoltán Szalóky, JLL's Head of Office Group.

Dr. József Tóth, the Mayor of District 13 and Dr. Balázs Szeneczey, City Development Deputy Mayor assured the attendees of the event that both the District 13 and the capital city administration will continue to support the development of the region and agreed to cooperate regarding future development ideas.  In his presentation, Zoltan Nyul, Strategy and Innovation Director of BKK highlighted plans to reduce the amount of poorly paved road surfaces, to modernize them, to rethink green spaces, and to consider accessibility needs.

The presentation "Váci Boulevard" by Pál Baross, the Development Director of CEU, enjoyed great success as he talked about the effect of developments on public areas. According to Baross, Váci Corridor is difficult for engineers due to endowments, randomly designed buildings, and a lack of cooperation with local government to create a collective concept. Developers usually try to independently create their own public territory, an internal street is elected to form a facade, or provide a space for green areas in the complex. His conclusion stated that if developers were to collaborate with the urban developers of the local government on a shared plan for office buildings, the return on investment would be much more tangible for everyone. In turn, making liveable public places would help to create a more diverse range of retail that would have a positive impact on tenants and on the neighbouring residential areas.

The event's final presentation was held by Rita Tuza (JLL), who presented the company's vision about workplaces of the future. She highlighted the impact of accelerated technological progress and demographic trends, developments and their importance to the company's organizational structure and the transformation of the function of offices. In her view, within a few years virtual reality will be an everyday assistant in the office and the main function of the office will be to provide space for collaboration and innovation among employees and external consultants and freelancers. The presentation about the future, particularly the forecast about smart office buildings showed a vast contrast to developments currently under construction. The researcher specifically welcomed developers who use pioneering methods and are already working on the development of smart buildings in the Budapest office market.