Industrial Condominium as an Investment

The leading players of the Hungarian real estate market gathered for the first time on March 26, 2025 at the exclusive HAD Real Estate Business Breakfast, organized by the Belgian-Hungarian owned RaktárAD, to discuss the trends in the SME sector, the issues shaping the future of the industry and the opportunities in the sector.

According to a statement released, the prestigious professional event was opened by Ernő Hadnagy, President of HAD Group, and Gergely Osadcow, President of the National Association of Hungarian Real Estate Agents (MIOSZ), who emphasized the untapped sales and utilization potential of the industrial real estate market and the unmet real estate needs of the SME sector. During the day, analysts examined questions such as: what has characterized the sale of industrial real estate in recent years? Is it worth investing in industrial property in 2025 rather than residential?

The business brunch was designed to bring together the most influential leaders, decision-makers and investors in the real estate market in an inspiring, informal and professional environment. The event provided an excellent opportunity for experts to share their experiences of the current market situation, helping to understand the latest trends and innovations.

For over a decade, WarehouseAD has been a leading player in the construction and sale of industrial real estate for SMEs. "The company has sold a total of 65,000 sqm of industrial condominiums since 2016. The annual volume of space sold has typically ranged between 5,000 and 10,000 sqm. The company's most successful year to date was 2019, when 11,000 sqm of industrial property found a new owner," Tibor Lőrincz-Hadnagy, Operations Manager of HAD Group COO &amp analyzed.

RaktárAD's business model should ensure stable growth in the long term, as the concept of industrial condominiums is in increasing demand. And with the right financing solutions, these properties can be made available to a wider range of buyers. In the long term, the purchase of warehouses can be a more cost-effective and predictable solution for SMEs than renting.

The industrial real estate market is cyclical and is heavily influenced by economic and political factors. The sector has been significantly impacted, in particular by the announcement of the construction of the BMW factory in 2019. The segment has shown strong growth between 2020 and 2022, peaking in 2022. The economic situation at the beginning of 2022 was uncertain, exacerbated by the Russian-Ukrainian conflict, causing a significant slowdown in economic activity. Thereafter, economic activity declined, before gradually returning to stability.

While during COVID-19, demand for large halls showed a steady increase, there is now a certain stagnation. However, there are now positive signs pointing to a possible recovery. These extraordinary events have distorted market trends to such an extent that traditional cycles have become almost unrecognizable. As a real estate market product, halls are a particular focus of attention in this uncertain economic environment. This in turn raises the question of what impact these effects will have on the market for smaller halls, and to what extent there will be a crossover between the clientele of the two segments.