Colliers forecasts growth in commercial property market
This is primarily due to improved investor sentiment and the increasing presence of foreign capital from Asia, writes international property consultant Colliers. The outlook is also more positive in terms of investment volume this year than in 2024. Contract renewals dominated the office market in 2024 and accounted for almost 60% of the total letting volume, while the volume of new lettings fell by 20% compared to the previous year.
The total office stock in Budapest has risen to 4.46 million sqm, with an average vacancy rate of 14.1% and a speculative vacancy rate of 17.5%, with the vacancy rate expected to peak in 2025. Colliers is also forecasting stable demand in the office market, as tenants are once again considering retaining or even expanding their space.
The total stock of the industrial property market amounted to more than 5.5 million m2 in 2024, of which 3.7 million m2 is available in Budapest and 1.8 million m2 in rural areas. According to current figures, a further 585,000 m2 of new commercial space will come onto the market by 2026, 43% of which has already been pre-let. The vacancy rate in Budapest has fallen to 7.9%, while it has risen slightly to 6.8% in rural areas. All these indicators suggest that the market is developing well and that demand for logistics and industrial property remains high. The transport corridors are attracting interest, and Asian logistics and manufacturing companies are also increasingly looking to the region.
The retail sector stabilised in 2024 thanks to the increase in purchasing power, consumption and real income. Retail parks are still in demand, mainly due to lower maintenance costs and stable customer demand. However, the development of new retail parks faces political obstacles such as the so-called ‘Plaza Stop Act’ and problems with land rezoning. As far as shopping centres are concerned, the 11,000 m2 Zenith Corso in Zugló will open at the end of 2025. The only major development is Duna Plaza, where the current building is to be remodelled and extended.
