The approximately 32,000 sqm logistics center was delivered within a comprehensive development, leasing and investment framework, and is expected to enter full operational service in the second quarter of 2026, according to Panattoni.
The logistics warehouse was designed and executed in line with the tenant’s operational and technological requirements. Reflecting the project’s high level of complexity, the development significantly exceeded the typical timeframe of standard industrial schemes, yet was completed on schedule.
Among the advanced features are a multi-level, semi-automated pick-up tower covering several 1,000 sqms, as well as cutting-edge logistics systems incorporating conveyor technology, “pick-by-light” and voice-picking solutions.
“We are particularly proud to have completed our fourth development on the fourth anniversary of Panattoni Hungary’s establishment. In both scale and technological sophistication, the Üllő project represents a milestone for our Hungarian operations, made possible by exemplary collaboration between the tenant, the investor and the general contractor,” comments László Kemenes, managing director of the developer.
The project was delivered as an investment of the OTP Real Estate Investment Fund, with Goldbeck Hungária acting as general contractor.
“The Üllő development is a clear demonstration of how the OTP Real Estate Investment Fund can create long-term value by participating in projects that are not only financially sound, but also technologically advanced and sustainability-driven,” says Ervin Fidél Schwender, head of property development for the OTP fund management.
“Our cooperation with Panattoni has once again proven that strong professional partnership and shared vision can deliver outstanding results in the Hungarian logistics real estate sector,” Fidél adds.
Sustainability considerations played a central role throughout the development process. The property is currently undergoing BREEAM “Very Good” certification, while the 280 kWp rooftop solar PV system and 47% landscaped green area support long-term environmentally conscious operations.
The technical specifications include more than 27,000 sprinkler heads and 3,600 cubic meters of firewater storage to ensure robust fire protection. Meanwhile, 42 dock levelers and the three-story pick-up tower enhance logistics efficiency. The tenant is currently installing the internal warehouse automation and systems integration in preparation for the facility’s go-live in the second quarter of 2026, Kemenes adds.
Gundlach Automotive Solutions has extended its 11,000 sqm long-term lease at CTPark Arrabona, located at one of the key industrial and logistics hubs in Győr (118 km west of Budapest by road). The Audi supplier operates a production and distribution facility with specialized infrastructure that supports uninterrupted, “just-in-sequence” deliveries at the BREEAM “Very Good” complex.
“A predictable environment is essential for long-term operations. Our cooperation with CTP has provided a solid foundation for us to remain a reliable supplier to Audi for years,” says Zoltán Ódor, location and production manager of Gundlach Automotive Solutions Kft. “Proximity to the Audi factory was also a decisive factor in their continued partnership,” he adds.
“It is crucial for Gundlach to operate in an environment where every need is met, from location to infrastructure to daily operations. At CTP, we provide exactly this stability and flexibility as part of our long-term business model. We are very pleased that Gundlach has once again placed its trust in us,” comments András Kiss, regional business development manager at CTP Hungary.
Industrial vacancy has been increasing since 2019, with construction volume remaining at a high level, iO Partners concluded at a recent Industrial Breakfast event it organized. The consultancy has traced a total stock of 3.92 million sqm of industrial stock in the Budapest area, with 166,000 sqm of completions in the first three quarters of 2025.
A further 308,000 sqm is under construction with a gross take-up of 406,000 sqm in the first three quarters and vacancy rising to slightly above 13%. Prime rents stand at EUR 6.5 per sqm per month. Leasing activity has remained strong since 2022. As much as 50% of demand is from Asian firms, according to Roland Kis, head of industrial at iO Partners Hungary.
Outside of the Greater Budapest area, developer-led logistics stock exceeded two million sqm as of Q3 2025. Seven new warehouses were delivered, totaling a combined 102,000 sqm in provincial hubs. Approximately 222,000 sqm of space is under construction and scheduled for completion between now and the end of 2026.
The current vacancy rate in the provinces stands at 11.8%. The increase in demand from the automotive, pharmaceutical and high-tech sectors has established the Győr-Székesfehérvár-Budapest triangle, the Miskolc-Hatvan corridor, the Debrecen-Nyíregyháza-Polgár corridor and Kecskemét as prime industrial locations beyond the Hungarian capital.
iO Partners says that 38% of completions in the first three quarters of 2025 were built-to-suit projects or assets delivered at full occupancy, while 46% of the current pipeline consists of BTS schemes or projects already under construction and fully pre-let.
Of the industrial buildings handed over in 2025 in the Budapest area, 19% were BTS, 19% fully preleased, and 61% developed on a speculative basis. In the provinces, 36% of buildings were built on a BTS basis, 21% were fully preleased, and 42% were speculative.
Among the industrial buildings under construction in Hungary in Q3 2025, 20% are BTS, 18% are fully preleased, and 62% are speculative. For Budapest, 17% of buildings for this period are BTS, compared to 25% in the provinces, while 69% of buildings in the capital are speculative, compared to 53% in the regions.
This article was first published in the Budapest Business Journal print issue of December 12, 2025.
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