Hungary MarketBeat

Orsolya Hegedűs • 10/24/2019
Cushman & Wakefield MarketBeat reports analyse quarterly Hungary commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.

The Hungarian economy grew at the fastest pace in a decade, with GDP growth reached a strong 5.0% in 2018. Albeit a slowdown is anticipated in the second half of 2019, a solid growth rate of 4.8% is forecast for 2019. 

Office

The Budapest office market rallied in the second quarter, supported by strong economic growth. GDP grew by 5.0% last year, the fastest pace in a decade and expanded by 1.5% q-oq in Q1 2019. A slowdown of economic growth is expected in the second half of 2019 due to downward revisions made to the German and eurozone forecasts. The economy is characterised by optimism whilst the GKI business sentiment index has been falling to a level last seen in Q1 2017.

Retail

Private consumption growth remains a major driver of the economic growth and is expected to stay robust at 5% this year, supported by a tight labour market and hikes in real wages. Indeed, retail sales continued to expand by more than 5.2% y-o-y in June and the GKI consumer confidence index shows optimism. This has filtered through to the retail property market, which together with growing tourism has sustained occupier demand for prime locations.

Industrial

Albeit a slowdown of economic growth is anticipated in the second half of 2019 and the HALPIM’s manufacturing PMI declined to levels last seen in 2016, a solid industrial production growth of 6.0% is forecast for 2019. Moving forward the market is expected to remain BTS dominated, but speculative development is on the horizon. The strong rental growth of new products has opened a window of opportunity for repricing existing stock at an improved rental level in prime locations. 

Get the full Hungary property market picture with all the market data by downloading the reports.

Current Marketbeats

Budapest sunset, Hungary
Hungary Office Data

Office Marketbeat is a summary of the Hungary office property sector providing comment on recent trends as well as market data and analysis.

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Food hall, Budapest, Hungary
Hungary Retail Data

Retail Marketbeat is a summary of the Hungary retail property sector providing comment on recent trends as well as market data and analysis.

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