Ernő Takács noted that the fourth quarter could mark the sector’s strongest performance in Central Europe since the start of the war in Ukraine, adding that “we can hop on that train, too.”
Next year, investment in local property developments is expected to double from around EUR 400 million in 2024, according to data from property market consultancy CBRE, he said.
Hungary’s location and existing infrastructure make the country well-suited for industrial developments, though projects have been hindered by a slower-than-expected economic recovery following the recession caused by the energy crisis and high inflation.
This recovery presents “a bigger challenge than earlier expected,” mainly due to weak demand in export markets, particularly from automotive industry companies affected by declining demand for electric vehicles, Takács said.
In the long term, electric vehicles “are the future,” and automotive industry investments, such as the construction of the BYD plant in Szeged, the BMW factory in Debrecen, and the expansion of Mercedes-Benz’s base in Kecskemét, will provide a “huge boost” to industrial property investments in those regions, he added.
Takács also pointed out that government measures to ensure affordable housing could provide a much-needed boost to the residential development market, which began to recover in the second half of 2024.
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