Hungary’s commercial real estate market set for gradual recovery, according to central bank report
Hungary’s National Bank of Hungary (NBH) recently released a report on the country’s commercial real estate market, suggesting that the sector may have hit its lowest point and could be on the brink of a slow turnaround. Tamás Nagy, the director at NBH, pointed out that while disappointing GDP growth has affected the market, there is potential for accelerated growth to mitigate risks.
Despite higher vacancy rates in the office and industrial-logistics property market, Nagy stated that there is little risk if vacancy rates continue to rise in the mid-term. He also mentioned that a significant number of projects in the pipeline are expected to boost industrial-logistics property stock over the next two and a half years.
Although commercial property investment in Hungary decreased in the first half of 2024, yields remained steady. Additionally, commercial property loans saw an increase in outlays, even though lending conditions did not improve. Nagy also noted that improving consumer confidence has led to better vacancy rates in shopping centers in Budapest and other cities across Hungary.
Overall, the NBH report indicates cautious optimism for Hungary’s commercial real estate market, with potential for growth and recovery in the near future.
