Vacancy, which has shown an upward trend since the end of the 1990s, fell by a full percentage point during the quarter due to a combination of high demand and a relatively small amount of new space hitting the market. At 53,000 sqm, take-up of office space was the third highest quarterly figure in the last five years, and over double new supply of around 20,000 sqm. Compared to the same period last year, however, take-up has fallen in the CBD (Central Business District), while peripheral districts have benefited. Over 27% of new rentals in Q1 occurred in south Buda while the vacancy rate in the CBD was well above the average at 28%. CBRE expects a further 100,000sqm of new supply by the end of the year. Much of the demand is expected to come from companies already in Budapest upgrading to new premises. Headline rents are stable at around EUR 16.50 per sqm per month, but could rise in the near future, the report concludes.