Hungary's economic environment reached a turning point in Q2 2026. Following the April elections, the new government committed to closer EU alignment and restoring access to EU funding, bolstering investor and business confidence. Real GDP expanded by 1.7% year-on-year in Q1 2026, inflation eased to 2.1%, and the National Bank of Hungary cut its base rate to 5.75% in July. Labour market conditions remained resilient, with unemployment stabilising at around 4.5%.
Cushman & Wakefield's MarketBeat publications provide a comprehensive overview of the Hungarian commercial real estate market, covering the office, industrial, retail, and investment sectors. The reports below highlight the key trends shaping occupier demand and investment activity.
Investment
Offices
- Total investment volume exceeded €507 million in H1 2026, building on the momentum established in 2025
- Retail was the strongest-performing sector at 40% of volume, followed by offices at 32% and industrial and logistics at approximately 20%
- Domestic investors remained the market's main source of capital, accounting for 78% of total volume, while international capital returned selectively
- The average deal size increased to €16.5 million, lifted by several long-awaited transactions
- Prime yields remained stable quarter-on-quarter and year-on-year, at 6.25% for offices and 6.75% for industrial assets, indicating that improving sentiment has yet to translate into yield compression
Industrial & Logistics
- Gross take-up totalled 210,940 sq m in Q2 2026, with H1 leasing activity increasing significantly year-on-year, underlining resilient occupier demand
- New leases represented 47% of transactions, followed by renewals at 26%, with distribution and manufacturing occupiers driving demand
- The national vacancy rate rose to 13.2% following recent speculative completions, lifting modern industrial stock to 6.5 million sq m
- Development activity remained robust, with 499,795 sq m under construction nationwide, 54% of which was pre-let
- Prime rents in Greater Budapest held stable at €5.45/sq m/month, while the prime yield stood at 6.75%
Retail
- Gross take-up totalled 210,940 sq m in Q2 2026, with H1 leasing activity increasing significantly year-on-year, underlining resilient occupier demand
- New leases represented 47% of transactions, followed by renewals at 26%, with distribution and manufacturing occupiers driving demand
- The national vacancy rate rose to 13.2% following recent speculative completions, lifting modern industrial stock to 6.5 million sq m
- Development activity remained robust, with 499,795 sq m under construction nationwide, 54% of which was pre-let
- Prime rents in Greater Budapest held stable at €5.45/sq m/month, while the prime yield stood at 6.75%
