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Still, Colliers said a broader market rebound is likely to remain gradual.
Presenting its first-half market review, Colliers said Hungary’s GDP growth is currently expected at 1.6%-1.8% in 2026 and 2.5%-3% in 2027. Inflation stood at 1.8% in the first half, while unemployment was 4.4% in June and nominal net wages rose 14.6% between January and May.
Kristóf Tóth, associate director and head of research at Colliers, said the macroeconomic environment had improved visibly following the elections. Hungary’s five-year CDS spread fell to around 68 basis points from 115, while the yield on the 10-year government bond declined by roughly 200 basis points. The forint also strengthened by around 10% against the euro.
Colliers said the more favorable risk and financing environment is one of the most important conditions for a recovery in real estate investment activity.
Risks remain, however, particularly from geopolitical tensions and energy prices. Hungarian industrial production increased by 0.7% between January and May, supported mainly by electrical equipment and vehicle manufacturing, while construction output was 4.3% lower than a year earlier.
Commercial real estate investment volume in Hungary reached EUR 610 mln in the first half of 2026, up 26.7% year-on-year and marking the strongest first-half performance since 2021, according to Balázs Zelles-Görgey, director and head of capital markets at Colliers.
Based on transactions currently in the pipeline, Colliers said full-year investment volume could exceed EUR 1.2 bln.
Hungarian buyers accounted for 74% of investment activity. Offices were the most sought-after asset class, representing 37.9% of volume, including transactions involving Capital Square and Millennium Tower I.
Retail accounted for 32.9%, including Árkád Szeged, Korzó Nyíregyháza and the Park Center portfolio, while industrial and logistics properties represented 18.5%, including HelloParks Fót F1.
Prime yields remained stable at 6.5% for offices, 7% for shopping centers and 6.75% for modern industrial and logistics assets.
Colliers expects easing political uncertainty, lower country risk and improving financing conditions to support a gradual recovery over the next 12-24 months.
Activity from Czech, Slovak and Romanian investors could strengthen first, potentially followed by Baltic and Balkan capital. Colliers also expects greater activity from French SCPI investment funds and Israeli investors.
Across the CEE-6 region, commercial real estate investment volume reached EUR 5.8 bln in the first six months of 2026. Poland recorded EUR 3 bln and the Czech Republic EUR 1.4 bln, while Hungary returned to third place with around EUR 0.6 bln.
Colliers cautioned that the recovery is not yet broad-based, with capital continuing to focus selectively on assets offering stable income, strong ESG performance and competitive long-term positioning.
The Budapest office market is also showing signs of stabilization, according to Miklós Ecsődi, partner and head of occupier services at Colliers.
The previous rise in vacancy has stopped, while new office deliveries remain very limited.
Lease renewals continued to dominate activity during the first half, rising 28.6% and accounting for 53.3% of all transactions. New leases fell 49%, while pre-leasing totaled just 600 sqm.
Prime office rents stood at EUR 25.5/sqm/month, while average rents for Category A space were EUR 17.1/sqm/month. Newly built properties typically commanded rents of EUR 19-23/sqm/month.
Only 110,012 sqm of speculative office space is expected to be delivered by the end of 2028, including 38,508 sqm this year. Almost 87% of the pipeline is concentrated along the Váci Corridor.
Budapest’s modern office stock totaled 4.474 mln sqm, up only 1.1% year-on-year. The average vacancy rate declined to 12.2%, while vacancy in the speculative stock edged down to 15.7%.
Total leasing volume reached 215,042 sqm in the first half, up 1% year-on-year, although net demand fell 42.9% to 57,644 sqm. Net absorption was positive at 42,302 sqm.
Colliers said the combination of limited new supply and demand for modern, energy-efficient buildings could create stronger competition among occupiers for high-quality new space over the medium term.
In the industrial and logistics market, large-scale transactions remained prominent, despite weaker net absorption in Budapest.
Tamás Beck, partner and head of industrial and logistics at Colliers, said net absorption in the capital was negative at 33,607 sqm, while regional markets recorded positive net absorption of 153,976 sqm.
Leasing activity in the Budapest logistics market reached 367,922 sqm in the first half, with net demand of 249,202 sqm. New requirements accounted for 64.5% of demand in the big-box segment.
Ten transactions exceeding 10,000 sqm each were completed, with a combined volume of almost 200,000 sqm.
Nationwide, 246,395 sqm of new industrial and logistics space was completed, 48% of which was vacant upon completion.
The development pipeline stands at 502,624 sqm, with a 58% pre-lease ratio. Of this, 340,249 sqm is in the Budapest region and 162,375 sqm in regional locations.
Headline rents for Budapest big-box properties were typically EUR 5.25-5.75/sqm/month.
Vacancy in Budapest increased to 14.8% from 12.8% in 2025, while regional vacancy rose to 10.5% from 8.6%.
Colliers noted, however, that headline vacancy figures can be misleading because occupiers seeking a specific combination of location, size, timing and technical specifications may still have relatively few suitable options.
Retail market fundamentals were supported by stronger consumption, real wage growth and declining inflation, according to Anita Csörgő, director and head of retail at Colliers.
Retail sales rose 4.6% between January and May, while the health and beauty segment grew 4.9% and e-commerce expanded by 8.9%.
Budapest remained the country’s strongest retail market. Per capita purchasing power stood at EUR 15,739 in 2025 and is expected to increase by around 10% this year.
Luxury and premium retail activity remained strong, with brands including Samsonite, Missoni, Longines, Messika and W.Kruk opening or preparing stores along Andrássy Avenue, while Max Mara relocated. Lululemon and Rituals also entered the Hungarian market.
Vacancy continued to decline in both prime and secondary shopping streets.
Limited supply and demand from international brands pushed rents higher in central Budapest. Rents reached around EUR 200/sqm/month on Váci Street, EUR 230/sqm/month on Fashion Street and EUR 80-100/sqm/month on Andrássy Avenue for smaller prime units.
Prime rents on Fashion Street have increased by around 48% since the beginning of 2024.
Retailers are also securing locations earlier, with lease extensions and negotiations for new tenants sometimes beginning as much as two years before an existing contract expires.
Retail parks and outlet centers remained the most active development segment, with total stock approaching 775,000 sqm. Budapest’s modern shopping center stock remained broadly unchanged at around 784,000 sqm.
The main future supply project is Duna Mall, planned on the site of the current Duna Plaza with a target completion date of 2029.
Colliers said Hungary’s real estate recovery is progressing at different speeds across market segments, but the overall direction has become more positive.
Investment activity is already benefiting from lower country risk and improved financing conditions, while office and logistics occupiers remain selective and developers continue to rely heavily on pre-leasing before launching projects.
Retail, meanwhile, is being supported by consumption, tourism and constrained supply in prime locations.
Colliers said the key conditions for a broader recovery will be a stable and predictable regulatory environment, further improvement in financing conditions and continued demand for high-quality, energy-efficient properties.
These factors could eventually support a broader return of international capital and higher transaction volumes, while assets whose sales were postponed during the past two years could increasingly return to the market from 2027.
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