The Hungarian commercial real estate market showed signs of recovery in 2025 after a challenging period, with investment volumes rising 117.5% year-on-year to €881 million, according to Colliers' latest market analysis.
Hungary's GDP growth reached only 0.4% in 2025, falling short of expectations despite a tight labour market with 4.4% unemployment and 9.4% wage growth. Inflation is expected to range between 3.0% and 3.5% in 2026, with monetary conditions beginning to ease as eurozone rates dropped to 2.15%. "Rising real wages, strengthening consumption, and increased investment activity could provide a solid starting point for growth in 2026," said Kristóf Tóth, Associate Director and Head of Research at Colliers.
Meanwhile, the construction sector grew by 1.6% during the first eleven months of 2025, primarily driven by residential developments. At the same time, volatility in public investments continued to play a decisive role in monthly output levels.
The investment market marked a turning point, with domestic investors accounting for 64% of total volume while international investors remained cautious due to Hungary's higher country risk premium. Balázs Zelles-Görgey, Director and Head of Capital Markets, noted that "prime yields across major asset classes remained flat last year, and no compression is expected in 2026." Transactions concentrated in offices (50.8%), hotels (18.3%), and industrial assets (17.4%).
The office market showed improvement with vacancy rates declining to 12.5% and net take-up exceeding 217,000 sqm, up 14% year-on-year. Prime rents remained stable at €25.5/sqm/month. The total office stock currently stands at 4.46 million sqm. The retail sector benefited from rising real incomes and 7.5% growth in international guest nights, with prime high street rents on Váci Street reaching €160-200/sqm/month.
Industrial real estate recorded strong demand with net take-up rising to 448,000 sqm, though 45% of annual activity occurred in Q4. Total completions reached 476,794 sqm, with vacancy rates at 12.8% in Budapest and 8.6% in regional markets. The total stock currently stands at around 4 million sqm in Budapest and 2 million sqm in regional markets.
