Hungary's economic environment reached a turning point in Q2 2026. Following the April elections, the new government committed to closer EU alignment and restoring access to EU funding, bolstering investor and business confidence. Real GDP expanded by 1.7% year-on-year in Q1 2026, inflation eased to 2.1%, and the National Bank of Hungary cut its base rate to 5.75% in July. Labour market conditions remained resilient, with unemployment stabilising at around 4.5%.
Cushman & Wakefield's MarketBeat publications provide a comprehensive overview of the Hungarian commercial real estate market, covering the office, industrial, retail, and investment sectors. The reports below highlight the key trends shaping occupier demand and investment activity.
Investment
Offices
- Gross take-up reached 215,040 sq m in H1 2026, with leasing activity remaining stable year-on-year
- Renewals continued to dominate demand, accounting for 53% of activity, followed by owner-occupier acquisitions at 20%
- The vacancy rate stood at 12.2% at quarter-end, with no new completions recorded in Q2
- Development activity remained measured, with 414,105 sq m currently under construction and renewed momentum in the speculative pipeline
- CBD prime rents rose 4% quarter-on-quarter to €26/sq m/month, while prime yields held stable at 6.25%
Industrial & Logistics
- Gross take-up totalled 210,940 sq m in Q2 2026, with H1 leasing activity increasing significantly year-on-year, underlining resilient occupier demand
- New leases represented 47% of transactions, followed by renewals at 26%, with distribution and manufacturing occupiers driving demand
- The national vacancy rate rose to 13.2% following recent speculative completions, lifting modern industrial stock to 6.5 million sq m
- Development activity remained robust, with 499,795 sq m under construction nationwide, 54% of which was pre-let
- Prime rents in Greater Budapest held stable at €5.45/sq m/month, while the prime yield stood at 6.75%
Retail
- Retail sales are projected to grow by 5.5% in 2026, supported by rising real incomes and improving consumer confidence
- Prime high-street rents, led by Fashion Street, increased by 14.3% year-on-year, reflecting sustained international tourism and retailer demand
- Prime shopping centre rents resumed growth after a prolonged period of stability, rising by 5.3% year-on-year
- The retail warehouse segment continued to expand, with retail park stock reaching 1.80 million sq m amid limited new shopping centre supply
