Property Developers Augur 'Rebound' in 2025
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Hungary's investment property market could start to recover next year and "rebound" in 2025-2026, the head of the Property Developers Roundtable Association (IFK) said on Monday, according to a report by state news wire MTI.
ErnÅ‘ Takács noted that transaction volume on the investment property market was expected to be around half a billion euros this year, a fraction of the record EUR 1.8 blén reached in 2019.
Hungary's industrial and logistics property stock stands at 5 mln square meters, including 3.5 mln in Budapest and environs, but the focus is expected to shift to developments in areas other than the capital, he said.
He welcomed government efforts to attract more FDI to Hungary and pointed to the impact a record EUR 8 bln of FDI this year would have on the property sector.
He acknowledged the slowdown on the office market and said handovers would probably reach 165,000 sqm this year, before falling to 140,000 in 2024 and declining even further in 2025.
He said the launch of the Csok Plus home subsidies scheme could mitigate the slowdown on the home construction market, but added that a "real turnaround" would require a significant fall in lending rates and new interest subsidies.
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