Hungary at the MIPIM Exhibition in Cannes

Hungary will focus on showcasing industrial and logistics real estate developments that support a strong inflow of foreign working capital at the world's premier real estate development exhibition, MIPIM, in Cannes from March 11 to 14, with a focus on the economic attractiveness of the country's rural cities and the expansion of the industrial-logistics sector, the Hungarian Investment Promotion Agency (HIPA) and the Association of Real Estate Developers Roundtable (IFK) that comprises the largest real estate developers, said in a joint statement to MTI.

IFK chairman Ernő Takács said in a statement, based on data from real estate consultancy CBRE, stressed that the development of demand for industrial real estate last year also fit into the growing trend since 2021. The net rental level was around 380,000 sqm in Budapest, the same as the previous year, and was increasingly strong in rural cities.

On the construction side, similar to last year, around 250,000 sqm is expected to be delivered in 2025 in Budapest, but in the countryside the expansion could be more modest at 144,000 sqm after last year's record year (250,000 sqm), but could reach 170,000 sqm next year. Office developments are also in a good position, with 530,000 sqm currently under construction in Budapest, although the vast majority of this, 400,000 sqm, is being built for public sector operators.

"By 2025, we expect stronger economic growth, especially in the industrial production and manufacturing sectors,” Ernő Takács pointed out, expressing his view that “foreign investment in Hungary, especially around the BMW, CATL and BYD factories, will further strengthen our logistics and industrial real estate market."

The outlook for residential property developments is also positive, with the housing market once again becoming a focus of interest for investors and developers. Several new directions are also emerging, such as the institutional rental market, and hotel development is about to take off thanks to the good performance of tourism, with international hotel operators clearly looking for opportunities to enter Budapest. Hungary is a particularly good target for high-quality, 4–5-star hotel developments, Ernő Takács stressed.

Based on CBRE data, the IFK chairman stressed that after last year's slow recovery, this year has seen an upturn in the investment market. There has been a noticeable increase in turnover, and thanks to this, the Hungarian investment market could reach €800 million this year, compared to last year's meagre EUR 300 million.