FM newsroom – real estate, office market. After a challenging 2024 for commercial real estate in Hungary, facility and property managers can expect gradual improvements in 2025. Experts from Colliers forecast an uptick in investment activity, steady demand in the industrial sector, and a stabilizing retail market—each offering opportunities for proactive management and long-term strategy.
Investment Market: Cautious Optimism for 2025
2024 closed with a 44% drop in transaction volumes and yields under pressure, prompting the need for revised pricing strategies to attract foreign capital. Domestic investors dominated the market, accounting for 78% of transactions. However, Colliers predicts a rebound in 2025. Easing ECB interest rates and increased foreign direct investment—particularly from Asia—are expected to drive renewed investor interest.
For property managers, this means preparing for more active investor inquiries and potential portfolio repositioning, especially in non-office assets such as retail and hotels.
Office Market: Tenants Hold the Upper Hand
Budapest’s office vacancy rate rose to 14.1%, with speculative vacancies hitting 17.5%. New lease agreements declined by 20%, while lease renewals made up nearly 60% of transactions in 2024.
For facility managers, this “tenant-friendly” market presents an opportunity to retain tenants by offering incentives like fit-out contributions. Prime rents remain at 25.5 EUR/sqm/month, and A-grade spaces around 17 EUR/sqm/month. Demand is focused on ESG-compliant and high-quality spaces, reinforcing the need for sustainable building certifications and energy efficiency upgrades.
Industrial & Logistics: Solid Demand and Steady Growth
The industrial stock exceeded 5.5 million sqm in 2024, with development momentum continuing. By 2026, an additional 587,300 sqm is expected to come online, 43% of which is already pre-leased.
Facility managers in logistics hubs, especially Budapest and regional centres like Debrecen, should focus on maintaining high occupancy rates and aligning properties with tenant demands. Rents are steady between 5.3 and 5.75 EUR/sqm/month, with vacancy rates decreasing to 7.9% in Budapest. Logistics and industrial spaces are in demand, especially from Asian manufacturing and logistics companies seeking regional bases.
Retail Real Estate: Recovery Driven by Tourism and Consumer Spending
Hungary’s retail sector stabilized in 2024 as purchasing power rose 7% and foreign guest nights increased 10%. High-street locations like Váci and Fashion Street remain in demand, with rents reaching 135 EUR/sqm/month.
Maintaining footfall in retail parks and shopping centres will be key for property managers. While retail parks are resilient due to lower operating costs, regulatory hurdles such as the “Plaza Stop” complicate new developments. Significant redevelopments—like the transformation of Duna Plaza and the new Zenith Corso in Zugló—highlight a shift towards mixed-use concepts and modernization.
What’s Next for Facility and Property Managers?
2025 offers cautious optimism across sectors.
- To attract top tenants, industrial and logistics will continue to thrive—ensure efficient operations and sustainability compliance.
- Office managers should leverage tenant-friendly conditions to retain and upgrade leases.
- Retail properties require adaptive strategies, balancing modernization with cost-effective operations.
Colliers’ 2025 outlook signals new opportunities for facility and property managers who can adapt to evolving tenant needs, embrace sustainability, and respond proactively to investment trends. Whether repositioning assets or upgrading facilities, the year ahead offers potential for growth—if you’re ready.
