FM newsroom – office, Hungary. While 1.95 million people will be working in flexible coworking offices worldwide in 2020, by 2028 this figure will rise to 8.65 million. As a result of global trends, the Hungarian office market is also undergoing significant changes.
Since the rise of hybrid working methods, demand for flexible workspaces and related services has been growing. This is prompting companies to rethink their long-term (5+ years) leases in office buildings, realista.ingatlan.com reports.
According to hrpwr.hu, the coworking market is increasingly moving towards full-service flexible workspaces. Flexible managed spaces can offer offices or workstations with high-added-value services for teams of up to 100+ people.
Flexible and full-service
With the rise of hybrid working practices, companies are looking for a more flexible yet full-service environment. It is also important to ensure that money is not tied up in assets such as office space and that it is easy to react to market changes rather than long-term leases. In a managed coworking office, tenants can concentrate on the business while the service provider handles the operations.
As the demand for flexibility in workspaces increases, so does the demand for flexibility in leases. In the coworking market, it is not the length of contracts that is changing (as there are already 1-3 year contracts), but the flexibility in the terms of the contract. This could be the possibility of expanding, downsizing, or moving to another office within the same operator’s territory under the same conditions.
Coworking is no longer just for freelancers and digital nomads
The Hungarian market is typically characterised by smaller coworking offices that attract freelancers, digital nomads and smaller IT and start-up teams. In the last 5 years, the number of companies renting coworking offices in Hungary has decreased. This is not due to a lack of interest from companies but because flexible office providers have not been able to attract enough capital to create compelling spaces, and the market has stagnated. For the time being, this runs counter to global trends.
Coworking is no longer just for freelancers and digital nomads; it can serve organisations of up to 100+ people. The current stagnation of the Hungarian flexible office market will also change in response to global trends, and the key to change lies in added services that make life easier for businesses and save them time and extra costs.
CBRE forecasts that the flexible office market is expected to grow at an average annual rate of between 14.9% and 19.2% over the next 8 years. In terms of employees, this means that there will be 8.65 million people working in flexible offices by 2028. Thus, flexible offices and coworking spaces – which serve companies with an average of 30 to 70 employees – will account for 30% of the global office space market by 2030, up from 2.5% today.
