And that’s before you also factor in the ESG requirements that are now the norm at the high-end of the Budapest and other Central European office markets.

Developers and office owners need to offer products that are flexible and adaptable to changing working habits around office attendance and the maintenance of a core and non-core workforce.

In recent office transactions, tenants and companies looking to establish business and R&D centers have tended to purchase office complexes, reflecting their long-term commitment to conducting business in Hungary.

The Hungarian Investment Promotion Agency was involved in 13 BSC sector projects in 2025, resulting in around 3,230 new jobs.

“These trends confirm that investors increasingly value Hungary not only as a manufacturing base but also as a hub for innovation and services,” says HIPA. BYD, the Chinese international EV manufacturer, has purchased the 32,000 sqm IP West office complex in District XI for use as its base in Hungary.

“The company will employ over 2,000 people at its new headquarters that will serve as the central hub for BYD’s European operations, driving innovation, covering R&D and high value-added services,” comments Kata Mazsaroff, managing director of Colliers Hungary, who worked on the transaction. 

In another office acquisition, Hungarian low-cost airline, Wizz Air, acquired Millennium Tower I, an approximately 18,800 sqm Class “A” office complex located in the Millennium Towers office park overlooking the Danube. The property provides modern office space and around 270 parking spaces in one of the capital’s most established business locations. The transaction stands among the largest recent owner-occupier office deals in Hungary and signals long-term confidence in the local market.

Major Investment

“This is a major office investment in the Hungarian market and a clear sign of Wizz Air’s long-term commitment to Hungary,” comments Valter Kalaus, managing partner of Newmark VLK Hungary. His firm represented the occupier throughout the acquisition and establishment of the business center, delivering strategic advice, technical due diligence, negotiations, and full tenant representation. 

The Váci Corridor office sub-market remains the most-favored Budapest development destination, attracting a number of BSCs. In addition to office development, a number of residential projects are also underway in the area, offering direct access by car or public transport (not least the M3 subway line) to work opportunities.

From the tenant perspective, location is key; the office should be easily accessible, and its design should be tailored to the needs of the people based there, providing the right conditions for efficient working. Today, it is also a natural expectation that you should not have to travel long distances to reach services such as restaurants, cafés and shopping facilities during a break or after work, Kalaus comments.

With limited development in recent years, potential tenants face difficulty finding well-located, suitably sized, ESG-compliant office spaces. Speculative development activity is historically low. In 2026, the only sizeable handover will be Centerpoint III, alongside several smaller schemes, meaning that new speculative supply will remain limited.

International institutional investors, mainly from Western Europe, are expected to return more actively to the office market, supported by attractive pricing and competitive yields in a regional context, according to Miklós Ecsődi, head of occupier services for the office market at Colliers Hungary.

“The Budapest office market enters 2026 with limited new supply and a shrinking speculative pipeline; development activity remains dominated by government-led BTS [built-to-suit] projects. With 83% of the 470,000 sqm under construction tied to BTS schemes and vacancy expected to rise, the current cycle clearly favors repositioning and repurposing existing assets to meet evolving occupiers’ requirements,” comments consultancy Cushman & Wakefield.

Basic Expectation

The design, development, and property management of offices in line with sustainability and ESG requirements is now the norm at the top end of the office market and for business centers. Further, accreditation from an independent, third-party sustainability organization such as BREEAM, LEED, or WELL (which has a range of requirements specific to interiors and well-being) is increasingly a basic expectation from international tenants and staff.

Skanska is a significant developer of office space, attracting business center clients across several Central European capitals.

“I believe selective new developments will do well in prime, well-connected areas where transit options are strong. There’s definitely a clear flight to quality happening; businesses want efficient workplaces that deliver transparent ESG performance,” comments Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska Commercial Development Europe.

“At the same time, redevelopment and deep retrofits are gaining traction as owners look to improve energy performance and user experience to keep their assets valuable for the long haul. For new projects, the winning approach is all about choosing great locations and designing adaptable spaces,” she argues.

“With structural topping out planned for the second quarter of 2026 and completion targeted for the first quarter of 2027, H2Offices Phase II is on track to deliver a sustainable workplace experience for what is next. Once all three phases are completed, the H2Offices complex will offer a total of 67,000 sqm of modern office space,” Luca notes.

“The next wave of office development will be driven by clear demand for spaces that combine efficiency, sustainability, and human experience, buildings that genuinely support productivity and well-being. Redevelopment will also play a growing role as owners upgrade existing stock to meet modern expectations,” she adds.

This article was first published in the Budapest Business Journal print issue of March 27, 2026.