According to Reed Midem, organizers of the annual four-day event, “the global urban festival is where investors evaluate opportunities, political leaders showcase sustainable urban projects, and industry leaders address market revival amid changing global demands.”
In general, the concerns expressed over the market reflected the rather uncharacteristic rainy and cold conditions on the Cote d’Azur.
“There is a healthy appetite, and people are talking and trying to make business. Hungary is not getting a lot of attention, although the attitude of international investors has been slightly better than in previous years, so there is not a complete turning away from the country,” commented Valter Kalaus, managing partner at Newmark VLK Hungary.
“Unfortunately, there is not a lot of excitement regarding the country from international investors. The problem is not at a real estate level, but due to political reasons and the economic situation that is affecting the interest of investors,” Kalaus added.
Hungary and several leading Polish cities again had a strong presence through promotional stands, reflecting the perceived need for companies, cities, regions and country promotion agencies to promote their home markets and investment opportunities to international developers, investors and lenders.
The 75 sqm Hungary stand, penned by Torter Design, had a prime location with a terrace overlooking the harbor and old city of Cannes and representatives from around eight firms. Several panel discussions moderated by Gábor Borbély, CBRE’s head of research and business development for CEE and Hungary, discussed investment markets in Hungary and the region.
These reflected on the position of the various markets with an emphasis on the industrial and logistics sector, as it is seen as a driving force in attracting FDI to regional hubs across Hungary. Notable developers promoting themselves at the stand were HelloParks and Innovinia. Wing had a presence at the Polish stands through its Polish developer Echo Investment and its promotion of the Towarowa 22 project in central Warsaw in partnership with AFI Europe.
The Fuzja (Fusion) mixed-use urban development project in Łódź won the Special Jury Award. The scheme was developed by Echo Investment and Archicom and designed by architects Medusa Group. The redevelopment on the site of a former textile factory has delivered 90,000 sqm of commercial, residential and cultural space. The 22 buildings, including restored heritage structures, are based on the 15-minute city concept, with everything within walking distance. The jury focused on projects that “seek to enhance the built environment prospects in line with ESG goals” in its decisions.
Other participants at the Hungarian stand were Biggeorge Property, Jalsovszky Law Firm, EDC Debrecen, CBRE and the Hungarian Investment Promotion Agency. Roundtable discussions reflected that investment activity across Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia shows signs of picking up.
According to Colliers, regional investment transaction volume could exceed EUR 10 billion in 2025. The Czech Republic and Poland are expected to remain the leading investment destinations. Investment volumes are expected to exceedEUR 2 bln for the former.
Investment figures for Hungary are expected to improve from the disappointing volumes of last year, although significantly below those recorded for Poland and the Czech Republic. Lóránt Kibédi Varga, managing director of CBRE Hungary, sees investment volumes of EUR 750 million-800 mln for Hungary for 2025. Benjamin Perez Ellischewitz, principal at Avison Young Hungary, is less optimistic and expects around EUR 500 mln. Mike Edwards, director of capital markets at Cushman & Wakefield Hungary, sees EUR 500 mln in investment volume for the first half of 2025.
One optimistic sign is a reported record-breaking deal for Hungary’s industrial real estate market, in which the Erste Open-ended Real Estate Investment Fund has acquired two HelloParks warehouses, the PT2 and PT3 buildings in the HelloParks Páty mega park, providing a combined 84,000 sqm of industrial and logistics space.
“This transaction clearly demonstrates the renewed investor interest in Hungarian industrial and logistics real estate,” said Gábor Futó, founder of HelloParks and its parent Futureal Group. “Space demand and rental growth have been strong for several years now, underpinned by a massive nearshoring and industrialization trend, in which Hungary has been the clear regional winner,” he continued.
“This transaction is a sign of returning liquidity and will catalyze further investor activity. The early movers will reap the rewards of healthy yields, strong space demand, rental growth, the limited supply of land and […] access the very limited ESG-compliant stock,” Futó added.
The industrial excellence theme of the Hungarian stand reflected the significant FDI Hungary has benefited from and the resultant boom in the industrial development markets in Budapest and regional centers. FDI was EUR 10 bln plus last year, creating around 18,000 new jobs, which has particularly benefited the regions around Debrecen and Szeged, according to Hipa.
The residential sector was another key asset class discussed at events during the Mipim week, particularly the delivery of affordable housing in cities in Hungary and throughout Europe. Zoltán Pécskay, managing director of EDC Debrecen, introduced a subsidized rental system in the eastern city with leases paid one-third by the municipality, one-third by the employer and one-third by the employee.
Mipim will return to the Palais des Festivals in Cannes on March 9-13, 2026, by which time it is hoped that the markets will have further improved.
This article was first published in the Budapest Business Journal print issue of March 21, 2025.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
