“The recent election outcome provides the new government with an exceptionally strong democratic mandate. Voter participation was the highest seen in modern democratic elections, and the result was clear not only in Budapest but nationwide,” says consultancy CBRE.

“This creates a solid political foundation for institutional renewal, economic stabilization and the rebuilding of investor confidence, and several overarching themes are already clearly visible,” it notes.

“Predictability, transparency, and institutional credibility are fundamental for the real estate market and the entire business community in Hungary. A stable regulatory framework, consistent application of rules, and a clear medium-term policy horizon are generally more important for development activity than sector-specific incentives,” CBRE argues.

“Early signals suggest that the new government intends to focus on restoring institutional checks and balances, strengthening the rule of law, and reducing political interference in economic decision-making. These measures, once implemented, would improve the operating environment for all developers regardless of sector,” the consultancy adds.

“New developers can be attracted to Hungary through transparent planning processes, reduced bureaucracy and corruption, fair competition, and improved access to land and financing,” comments Valter Kalaus, managing partner of Newmark VLK Hungary. “Regarding foreign investors, Hungary can become more attractive by stabilizing the legal framework, reducing political risk, and strengthening ties with the European Union,” he says.

“The government could improve sentiment towards Hungary by rebuilding trust through rule of law and anti-corruption measures, and consistent pro-market policies will significantly improve investor and developer sentiment. Increased market transparency will attract genuine competition. A more constructive relationship with the EU would boost confidence, unlock funding, and accelerate investment activity. While Hungary is a relatively small market within the EU, there are still good opportunities,” Kalaus adds.

“The job of the government is to create a supportive environment where economic growth and development can drive ‘natural’ demand. In recent years, we have seen massive public money being channeled into grants, subsidies and tax benefits. It has all been about artificially supporting demand,” argues Benjamin Perez-Ellischewitz, principal at Avison Young Hungary.

Fair and Stable

Investors and developers want the proper rule of law, fair competition and a stable regulatory environment. State aid plays a part and can convince an industrial consortium to set up a factory in Hungary, but those grants and subsidies are not a long-term strategic policy, he argues.

For Zsombor Barta, founding partner of Greenbors Consulting Ltd., former president of the Hungarian Green Building Council and senior parliamentary advisor to Hungary’s National Council for Sustainable Development, the most important step the new government can take is to restore predictability and trust in the investment environment.

Their pre-election commitments, such as rebuilding relations with the EU and its institutions, and re-establishing an environmental ministry, are strong positive signals for investors. These moves suggest a more stable, transparent and cooperative policy direction, which is essential for all real estate sectors, Barta comments.

“If this approach is followed through with a genuinely welcoming stance toward foreign capital and a clear, consistent regulatory framework, it will naturally support development across the board,” he says.

“In retail, for example, revisiting and making the current shopping mall ban more flexible would be key to unlocking new investments. In the residential sector, long-standing issues around affordable housing should be addressed with targeted and supportive regulation. In short, a predictable, pro-investment policy environment would be the single most important driver enabling growth across all real estate sectors,” Barta adds.

Attracting new developers to the Hungarian market requires a combination of regulatory transparency, financial accessibility, and market confidence. Foremost, the government should establish a single-window permitting authority that consolidates a fragmented approval process, significantly reducing both the timeline and the administrative burden for new market entrants, argues Máté Szoboszlay, business development and investment director at the Hungarian Faedra Group.

Competitive financing mechanisms, such as state-backed development guarantees or co-investment vehicles, could lower the entry threshold for developers who lack established local banking relationships. Equally important is legal certainty: a stable, predictable regulatory environment around property rights, construction regulations, and taxation will assure newcomers that the rules of the game will not change mid-project. Finally, targeted outreach programs at major international real estate forums, such as MIPIM, Expo Real, and similar industry events, would help position Hungary as an active, developer-friendly destination. 

‘Perception Matters’

“Perception matters enormously in cross-border real estate investment. Investment committees in London, Frankfurt, or Singapore assess not only the financial merits of a project but also the broader country risk and governance environment,” Szoboszlay points out.

“The government should focus on consistent, professional engagement with the international investment community, backed by concrete data on market performance, transparency indices, and infrastructure development. Actions speak louder than communications campaigns: every policy decision that reinforces predictability, fairness, and institutional integrity contributes directly to improved sentiment,” he adds.

A uniform, clear and predictable regulatory environment, better aligned with EU operations, would be important, according to Ernő Hadnagy, owner and president of HAD Group.

“This would not only help domestic entities, but would also make the market more intelligible and transparent for foreign investors. In the industrial sector, it would be particularly important for sustainable and future-oriented technologies to receive support. Political and economic stability are key issues for foreign investors. Hungary is not a fundamentally unfamiliar territory for them, as the majority of the largest investors present in our country come from the EU. Therefore, trust and predictability are the most crucial aspects,” Hadnagy comments.

“I think that improving the perception is not primarily a matter of communication, but rather of actionable, concrete steps. The most important move to improve Hungary’s image is to facilitate good projects and real investments; messages alone do not suffice,” he adds.

The Hungarian currency appreciated significantly in the run-up to the election and since the results. The clear victory and the two-thirds supermajority should allow for a smooth transition and a faster path to normalizing relations and unlocking EU funds, argues Perez-Ellischewitz.

“Those are the essential drivers for the reduction of perceived risk and the flattening of the interest rate curve. The base rate in Hungary remains one of the highest in Europe at 6.25% (with Romania at 6.5%). A commitment to joining the eurozone might be the best way to ensure a sharp reduction in interest rates. This is what was experienced in Bulgaria,” he adds.

This article was first published in the Budapest Business Journal print issue of April 24, 2026.