Office
Leasing activity in Budapest slowed in Q3 2024; however, year-to-date (YTD) take-up remained stable, matching the levels recorded during the same period in 2023. As observed in previous trends, renewals continued to dominate the market, accounting for 51% of total demand in Q3.
Retail
Retail sales have been growing year-on-year each month since January, though at a slower pan than initially anticipated. Between January and August, the Hungarian Central Statistical Office (HCSO) reported a 2.8% increase compared to the same period last year.
Industrial
Hungary's economy demonstrated resilience over the summer, although growth decelerated after a strong start to the year and lost momentum by the third quarter. Moody's Analytics forecasts GDP growth of 2% for 2024, with a stronger economic outlook projected for 2025 and 2026. Industrial stock expansion continued in Hungary during Q3, with 156,650 sq m of new industrial space.
Investment
The investment landscape in Hungary experienced subdued activity in the first half of 2024, reminiscent of the levels seen post-Great Financial Crisis, reflecting the global economic scenario. Retail emerged as the leading sector, constituting 50% of the total volume. Yield levels, having undergone repricing, are beginning to stabilise and continue to play a pivotal role in shaping the investment landscape.
