Hungary’s real estate market set to recover by end-2021
Hungary’s strong pre-pandemic performance, economic transformation, and vaccine rollout point towards a quick recovery for its property market
Analysts interviewed by the Budapest Business Journal are confident that Hungary’s real estate market will recover this year on the back of an exceptionally good performance before the pandemic, the transformation of the country’s economy, and the rollout of COVID-19 vaccines.
Another reason why analysts are confident of a quick recovery is because a number of deals and contracts that were finalised before the pandemic could only be brought to fruition in the last couple of months.
In terms of the sectors that will lead this recovery, experts say demand for logistical facilities in Budapest is booming this year due to the growing importance of e-commerce. Industrial facilities are also in high demand in other regions of the country as Hungary’s automotive industry develops further.
Sectors like residential real estate, offices and hotels are likely to enjoy some much-needed growth as well, though not as much as the logistical and industrial segments.
According to the analysts interviewed, investors and developers should be aware of the increasing importance of Hungary’s environmental policies, which drive demand for both environment-friendly buildings, as well as for green production and financing methods.