Industrial developers and logistics park operators are developing and operating ever more highly specified, energy-efficient, ESG-compliant and third-party accredited complexes in response to more specific company demands.
“Speculative development remains important because many occupiers cannot wait for a full BTS development cycle. The strongest projects therefore need to combine immediate or near-term availability with a high degree of customization,” comments Rudolf Nemes, CEO of HelloParks, the industrial and logistics unit of Futureal.
“BTS becomes more relevant as requirements grow more specialized, particularly in manufacturing, automation, power demand and temperature-controlled operations. In practice, the distinction is becoming less rigid: a well-designed speculative building should be flexible enough to accommodate highly specific operational requirements. At HelloParks, this is precisely the rationale behind developing adaptable buildings while keeping our technical team closely involved in tailoring them to individual occupiers,” Nemes adds.
The industrial sector has strong completion levels, with 615,000 sqm of delivery expected this year. H1 leasing activity increased significantly year-on-year, underlining resilient occupation demand, according to CBRE. New leases represented 47% of demand, with an estimated 500,000 sqm under construction with a 65% prelease ratio.
Modern industrial stock in Hungary amounts to 6.3 million sqm. In Greater Budapest, that figure stands at 4.5 million sqm, while stock in Hungary’s regions has surpassed 2.3 million sqm, according to the Budapest Research Forum, consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners, and Robertson Hungary.
The vacancy rate has risen to around 13% with sustained speculative development in recent years. That ranges from almost 15% in Greater Budapest to 10.5% in regional hubs. However, a significant proportion of vacant space no longer fully meets occupational requirements such as technical specifications, energy efficiency, ESG components, and clear height standards. As a result, the market has become bifurcated. Demand remains strong for modern, sustainable assets, while for older ones it is becoming more challenging.
HelloParks has begun speculative construction of PT6, its next warehouse in Páty (25 km west of Budapest by road), where a single occupier has taken the entire PT5 building of more than 42,000 sqm.
“This year’s results make one thing clear: occupier demand has remained exceptionally strong even as supply has increased, while decision-makers are becoming far more discerning. Today, our partners prioritize speed to market, modular flexibility, predictable operating costs and professional, efficient property management,” says István Pozderka, co-founder and director of business development at HelloParks.
“Due to current market unpredictability, we maintain a strategic preference for build-to-suit (BTS) projects to ensure stability and precise alignment with tenant requirements,” comments Balázs Czifra, director of sales and asset management at the Hungarian developer Innovinia.
“Simultaneously, we continue to launch speculative developments, as we believe our prime locations, superior building quality, and long-term ownership model provide a strong guarantee for securing high-quality tenants. Our speculative buildings are intentionally engineered with a flexible, modular approach, ensuring they can be easily customized to meet specific individual needs,” he explains.
“This balanced strategy allows Innovinia to remain agile while providing the high technical standards the modern market demands,” Czifra adds.
“Speculative development remains essential in core locations to ensure immediate availability and speed-to-market, which is often decisive in competitive lease negotiations,” agrees Ferenc Gondi, managing director for CTP Hungary, a developer with projects in both the Greater Budapest and regional hubs in Hungary. “However, the increasing technical complexity of tenant requirements, especially in manufacturing, is driving a higher proportion of build-to-suit projects,” he adds.
Zsófia Korda, head of Wing Industrial, says high-quality, BTS solutions are increasingly being sought by the hi-tech, automotive, electronics, and pharmaceutical sectors, while data centers and green energy integration are emerging as key growth areas.
“There remains an essential differentiation between demands from the logistics and industrial sectors. Modern occupiers increasingly demand a direct link between sustainable building performance and measurable overhead reductions, prioritizing energy-efficient buildings that reduce operating costs. At the same time, technical requirements have emphasized adaptable layouts, automation-readiness, and strong IT infrastructure to support increasingly complex operations,” she notes.
“While these needs apply across both sectors, logistics tenants place greater emphasis on layouts that maximize storage efficiency, high ceilings, and advanced distribution technology, whereas industrial tenants focus more on production-oriented infrastructure such as higher utility capacity, specialized equipment space, and flexible manufacturing layouts,” Korda adds.
Industrial developers and park operators are bringing forward more highly specified BREEAM- and LEED-accredited complexes in reaction to ESG market demands and EU Taxonomy requirements. One key sustainability requirement now is ESG data for reporting. ESG has shifted from corporate rhetoric to a measurable KPI, directly shaping tenant demand for energy-efficient buildings, Korda argues.
Industrial development is now being undertaken on a pattern common across Central Europe, which has traditionally been much less capital-centric than Hungary.
“Geographically, we are seeing a strategic shift beyond the capital. While Greater Budapest remains a vital logistics hub, regional destinations such as Debrecen, Kecskemét, Nyíregyháza, and Pécs are experiencing unprecedented demand,” says Cifra.
“This trend is driven by their strategic proximity to major OEM plants and the localized availability of a specialized technical workforce, which is becoming a decisive factor for high-value industrial investments,” he adds.
Greater Budapest remains the largest and most diversified Hungarian market. It benefits from a broader mix of logistics, distribution, manufacturing and relocation demand, creating more scope for carefully positioned speculative development. Regional markets tend to be more closely linked to individual manufacturing investments, supplier networks and specific infrastructure requirements, so pre-let and BTS schemes generally play a more prominent role according to Nemes.
That said, the provincial market is becoming increasingly important. The distinction is therefore not simply between Budapest and the regions: the decisive factors are access to transport infrastructure, labor, power capacity and an established industrial ecosystem.
Industrial and logistics investments are being concluded in the sector, despite the tendency for industrial asset owners to keep hold of their portfolios. The deal value reached EUR 100 million in the first half of 2026, representing 20% of investment activity, according to CBRE.
This article was first published in the Budapest Business Journal print issue of October 19, 2026.
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.
