Hungary’s commercial real estate markets demonstrated resilience in 2025, with activity remaining solid despite subdued GDP growth. Easing inflation, improving household fundamentals, and expectations of stronger external demand laid the groundwork for healthier market conditions in 2026. Across investment, office, industrial, and retail segments, market activity increased, reflected in higher transaction volumes and sustained leasing activity. Occupier demand remained selective, favouring well-located and higher-quality assets, while secondary stock continued to face pressure, requiring ReThinking and reinforcing a widening divergence in market performance.
Key Highlights
Investment
- Investment volumes increased by 135% year-on-year, approaching 2022 levels, with the office sector leading market activity.
- Landmark transactions included the Budapest Marriott Hotel, the first €100m+ deal since 2022, and the sale of two HelloParks Páty assets, establishing new pricing benchmarks in the logistics segment.
- Prime yields showed early signs of stabilisation, with industrial and hotel yields compressing by 25 basis points.
Office
- Government-related developments added more than 50,000 sq m of new space, lifting Budapest’s total office stock to 4.46 million sq m.
- Vacancy declined to 12.5% by year-end, supported by strong net absorption.
- Net take-up increased by 14% year-on-year, driven by new leasing activity, expansions, and notable owner-occupier transactions.
Industrial & Logistics
- Record leasing activity lifted annual gross take-up to 1.12 million sq m, surpassing the 1 million sq m threshold for the first time.
- Total industrial stock exceeded 4 million sq m in Greater Budapest and 6 million sq m nationwide, following 208,405 sq m of new completions in Q4 alone.
- Vacancy rates remained healthy at 12.8% in Greater Budapest and 8.6% in regional markets, supported by robust occupier demand and significant pre-leasing activity.
Retail
- Retail sales increased by 2.9% in 2025, supported by improving household consumption and real wage growth.
- High-street retail outperformed, with prime rents increasing to €160/sq m/month.
- New store openings and refurbishments shaped the supply pipeline, highlighted by the launch of Zenit Corso, the first new shopping centre delivered since 2023.
