Home to the European Institute of Innovation and Technology

Budapest

Nearly 150 years ago, in 1873, three cities – Pest, Buda and Óbuda - merged into what is known today as Hungary’s capital city, Budapest.

The beautiful and historical city is becoming an increasingly attractive option for people and businesses alike due to its low living costs, high quality of living, diverse culture, highly educated workforce and extensive transport network.

Budapest is a well-located hub for operating not only in the wider Central Eastern European (CEE) region, but also in the Balkans, Russia and the Middle East. Furthermore, Budapest’s robust infrastructure, industrial sites, offices and science parks, combined with competitive labour costs, make the city an ideal location for any business looking to expand its presence within Europe.

The city’s growth is being largely driven by the automotive, IT, pharmaceutical, FMCG, retail and electronic industries, but companies within the manufacturing, services and logistics sectors are also attracted to Budapest for its transport network and geographical location. In recent years, large corporations including BP, Lenovo, Vodafone, PwC, and BT have all expanded their European operations in the region.

It is not just large organisations moving to Budapest, the city’s rapidly developing start-up ecosystem includes hundreds of accelerators, incubators and coworking spaces. Hungary has the lowest corporation taxes in the EU combined with low operating costs, and Budapest boasts a highly educated and innovative workforce, which makes it a very attractive option for start-up hubs and overseas investors. In fact, a recent study by Startups.co.uk found Budapest – out of 80 European locations – to be the number one city to launch a business post-Brexit.

Studio Alliance members have undertaken projects in Budapest for:

Budapest Fast Facts

Average Letting Cost (annual)

€300

per square meter, Existing buildings

Total lettings in 2019

361,980

Square meters

Vacancy Rates

5.6%

Chain Bridge

Further supporting the city’s start-up community, Budapest is home to the European Institute of Innovation and Technology (EIT) – a body created by the European Union to bolster Europe’s ability to innovate by supporting entrepreneurs, innovators and students. The EIT is Europe’s largest innovation community, spanning 1,284 companies, over 2,000 partners, 269 higher education institutions and 310 research centers, across 193 cities, regions and NGOs.

Hungarian Parliament

Notable developments underway in Budapest include Szervita Square Building, a LEED Platinum certified premium mixed-use property (with office, retail, luxury residential functions) in the heart of the city to be completed in Q2 2021; Green Court Office, a nearly-zero-energy building (NZEB) located in District 13 to be certified BREEAM Excellent upon handover at the beginning of 2022; a renovation of Central Business Center in Inner Buda due to complete in Spring 2021; and RoseVille, a 15,000 square metre Class A+ office development in District 3 to be completed in Q4 2021.

Significant Lettings

Diligent Corporation

4,600 sqm

Szervita Square Building

Significant Investment

OTP Property

€Confidential

Roosevelt 7/8