BBJ: Hungary’s real estate players anticipate busier 2025, particularly in Budapest
According to the Budapest Business Journal (BBJ), investment activity in Central and Eastern Europe (CEE) is expected to grow significantly, with volumes projected to reach €10 billion in 2025, supported by anticipated ECB (European Central Bank) interest rate cuts and stable yield levels. In Hungary, the Budapest office market is facing challenges, with the vacancy rate predicted to reach 15% by mid-2025 as companies favour existing spaces over costly new developments. Meanwhile, the industrial sector is set for growth, with 640,000 sqm (squared metres) of new space in the pipeline, driven by foreign direct investment trends.
Sustainability has become a key focus across all real estate sectors, with developers prioritising ESG (Environmental, Social, and Governance) compliance to remain competitive by integrating energy-efficient and sustainable practices. The hotel market is also recovering, with 1,500 new rooms expected in Hungary by 2025, particularly in Budapest, as tourism returns to pre-pandemic levels. However, the retail sector is facing challenges, requiring developers to diversify their offerings and retrofit older properties to align with ESG standards or risk declining foot traffic due to changing consumer expectations.
Read more here:
https://bbj.hu/business/real-estate/hungarys-real-estate-players-anticipate-busier-2025/