The impact of rising energy prices on the Hungarian office market

Klaudia Gáspár at February 03, 2023

The partial phasing out of the overheads cuts also has a significant impact on the Hungarian office market.

This amendment may make working from the office a preferable option for many workers compared to working at home, as the employer bears the energy costs incurred during the time spent in the office.

This is not negligible as the home office is a significant energy consumer for households, especially in winter. Until recently, workers have paid less attention to rising energy prices, as wages have typically increased and utility bills have remained stable.

Working from home can be beneficial for employees because those who telework in a home office can be reimbursed up to 10% of the minimum wage per month. If not all workdays take this form, the amount must be prorated.

In the current economic situation, reducing energy consumption of paramount importance for employers. Both energy-efficient office buildings and serviced offices can help. Thanks to this, demand for this type of office spaces is expected to increase in the near future.

One of the advantages of serviced offices is that the rental fee includes all costs incurred, including the costs of energy, water and telecommunication services.

This type of offices can offer tenants a more financially stable option. In the past, service charges – which include overheads – were only a fraction of the rent. However, the surge in energy prices has also brought change in this regard. As a result of that, office operators are forced to increase rents in some cases, but tenants can still plan ahead with more certainity than if they were renting a traditional office.