Projects worth around HUF 740 billion began construction in the first quarter. While Activity-Start did not lag far behind the same period of 2025, it was still the weakest in the first three months since 2016.
The EBI Construction Activity Report Hungary analyzes the construction industry each quarter, including the volume of newly started construction works and the value of projects completed in each quarter by aggregate and by segment. This year saw a much weaker start in building construction than in Q1 2025, but the Activity-Start figure of around HUF 500 bln was roughly in line with the average quarterly level of 2025.
Multi-unit housing construction is the segment keeping overall construction levels high. Between January and March, the value of started multi-unit residential construction works exceeded HUF 240 bln at current price; the third-highest quarterly Activity-Start since 2014.
Activity-Start for non-residential construction this year came to HUF 263 bln. That exceeded the average quarterly value of 2025, which was considered weak, but was 33-44% short of the average values between 2021 and 2024. At constant prices, this year’s first-quarter Activity-Start has been one of the weakest since 2015
The value of civil engineering works in progress neared HUF 240 bln, boosted by the foundation works at Paks 2. Budapest continued to be the region with the highest value of construction works started in Hungary, accounting for 30%.
The report has found that while many large projects have moved closer to their planned start dates, there is considerable uncertainty, as schemes within the Home Start program are expected to be reviewed by the new government, which may change developers’ plans.
Two segments accounted for the majority of the Activity-Start: office and industry. Offices have performed rather poorly in previous years but recovered somewhat in the first quarter of 2026, with their share of non-residential construction rising to 34%, up from 9% in the previous two years.
Industrial properties and warehouses saw their share drop to 36% from 44-54% in the previous four years. In the first three months of this year, about 9-10% of started non-residential projects were related to wholesale and retail or to education.
The Activity-Completion indicator may remain at a high level this year as well. The Hungaroring paddock-building project has already been handed over, and several elements of BYD projects, the Samsung Göd expansion, and several CATL buildings in Debrecen may also be completed.
A part of the Wing-owned Resi4Rent residential portfolio has been sold for almost EUR 575 million. The transaction marks another milestone in the development of the institutional private rental sector (PRS) in CEE, according to Wing.
“The largest-ever transaction in the history of the Polish institutional rental housing market has now been closed. An agreement was initially reached in August 2025 to sell slightly more than half of the Resi4Rent residential portfolio, which was developed and partially owned by Echo Investment. Following approval from the Polish competition authority, the transaction has now officially closed,” says Wing.
“The purchaser, Vantage Development, a member of the German TAG Immobilien Group, paid approximately HUF 210 bln for 18 residential projects, totaling 5,322 units across six major Polish cities. The deal was completed at a 6.3% yield, reflecting not only the scale of the transaction but also the robust demand for rental housing in Poland’s major urban hubs, as evidenced by the divested portfolio’s nearly 100% occupancy rate. This transaction further confirms that the institutional rental model has become one of the most dynamic and sustainably viable segments of the CEE real estate market,” Wing adds.
Noah Steinberg, chairman and CEO of Wing Holding and chairman of the supervisory board of Echo Investment, is delighted with the news.
“Today, Resi4Rent is Poland’s market-leading institutional rental housing enterprise. The Wing Group has become one of the most significant players in the CEE region in institutional residential development and management. Alongside our experience in Poland, we maintain an active presence and significant market knowledge in Germany within this segment. Professional institutional residential portfolios have become one of the most attractive and sought-after real estate investment products in the region, providing a sustainable long-term response to the growing housing challenges faced by major cities,” he says.
The Resi4Rent platform has nearly 4,000 units remaining in its portfolio, including operational projects and developments under construction. Echo Investment plans to utilize the proceeds from the transaction to finance new projects.
TriGranit and DRFG Investment Group have acquired the Korzó Shopping Center, a dominant retail destination in Nyíregyháza (237 km northeast of Budapest by road). The asset comprises approximately 18,000 sqm of gross leasable area and serves as a key commercial hub in the region.
The shopping center boasts a strong and diversified tenant mix, including leading international and regional brands such as Spar, DM, Deichmann, Douglas, Erste Bank, Hervis, Libri, and New Yorker, ensuring stable footfall and long-term income resilience.
“We strongly believe that the future of retail in Central and Eastern Europe is not limited to capital cities. Cities like Nyíregyháza are gaining importance as regional hubs with strong catchment areas and loyal customer bases. Our investment in Korzó reflects our confidence in the enduring value of well-located, community-oriented shopping centers,” says Tomasz Lisiecki, CEO of TriGranit.
Jan Pelíšek, managing director of DRFG Real Estate, part of DRFG Investment Group, highlighted the group’s strategic approach. “This acquisition is fully aligned with our strategy of investing in stable, income-generating assets with long-term growth potential. Retail continues to evolve, but physical destinations remain essential. We see significant opportunity in enhancing the customer experience and strengthening the role of regional shopping centers as social and commercial anchors.”
The partners underline that the retail sector in Central and Eastern Europe continues to demonstrate resilience, supported by strong household consumption and a gradual shift towards modern retail environments outside major metropolitan areas. While e-commerce continues to expand, brick-and-mortar retail remains essential, particularly in regional cities where shopping centers often serve as key community hubs.
This article was first published in the Budapest Business Journal print issue of June 5, 2026.
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