ARTICLES LABELLED WITH TAG Hungary

In Q2 2023, the Greater Budapest speculative industrial stock increased by 65,580 sqm, adding six buildings to the stock, while in Regional Hungary, one new building was handed over. The vacancy rate at the end of Q2 2023 was 8.6% in Greater Budapest, an increase of 270 basis points quarter-on-quarter and an increase of 220 basis points year-on-year, the Budapest Research Forum (BRF) reports.

The Academia office building in downtown Budapest has undergone complete renovation and modernization. The building will offer 12,500 sqm of office space from the first week of August. The complex has obtained the WiredScore-Gold certification and soon it will boast additional certifications, such as BREEAM, WELL and Access4you.

Halls A1 and B1, completed in the first phase of Wing’s East Gate Pro Business Park development, located near Budapest, have received a BREEAM International New Construction certification with a “Very Good” rating. The first phase has 100% occupancy. Hall A2 is scheduled to be completed in late summer.

District regenerations and mixed-use developments require a complex approach even from the most experienced developers. Property Forum asked David M Johnston, Senior Director and Head of Advisory and Transaction Services at CBRE Hungary about the risks of such projects and he also shared some best practices from across the CEE region.

The vacancy rate has climbed again in the second quarter on Budapest's struggling office market, reaching 12.6% after 12.2% in the previous quarter. Total demand reached 119,890 sqm in Q2 2023, which is 56% higher than the value registered in the previous quarter, the Budapest Research Forum reports.

The former Ballet Institute has been transformed into the five-star W Budapest hotel offering 151 rooms and suits in the very heart of the Hungarian capital. The new facility is part of the global portfolio of the Marriott Bonvoy brand. 

IWG, the world’s largest provider of hybrid working solutions with brands including Spaces, Regus, HQ and Signature, is expanding its Hungarian portfolio with four new openings, adding a total area of 5,944 sqm to its footprint. The openings are being delivered in partnerships with different locations that have chosen the IWG flexible workspace platform and have entered into a management agreement with the Regus and HQ brands.

The latest Hungarian house price index for Q1 2023, which includes preliminary data, shows that the sharp fall in the number of sales transactions has not yet been followed by a similar decline in prices. The preliminary figures published by the Central Statistical Office (KSH) show prices stagnating in nominal terms: after a 2% drop in the previous quarter, prices have now risen by 2%, essentially returning to their Q3 2022 level. But what does this mean in relation to market fundamentals and what could be in store for the rest of the year?

The Hungarian Parliament voted in favour of the law on the public construction and investment regime with 136 votes in favour, 49 against and 9 abstentions. The law, among other things, makes the use of BIM mandatory for projects at or above the EU public procurement threshold, requires greater control over design and construction than before, and puts the whole life cycle of public works on a new footing.

In June 2023, only 7,120 residential properties changed hands in Hungary, according to the the monthly Transaction Number Estimate (DH-TB) of Duna House Group. This is a very low number again, so even though May was stronger, it seems that buyers are still waiting. We last saw so few sales in the first half of this year in 2014.