Office properties continued to be both the most abundant and attractive investment assets on the Hungarian commercial real estate market.

In 2020 office buildings accounted for 60% of our transactions which is in line with trends in previous years. Office properties continued to be both the most abundant and attractive investment assets on the Hungarian commercial real estate market. The vast majority of these office transactions involved Class A office buildings in central locations of Budapest, with a predominantly international tenant mix. A WELL LEED and/or BREEAM certification is now a must for these Class A office buildings and investors are pushing for a discount in those rare cases where the developer failed to secure at least one of these certifications for the building.

Asset type

We haven’t registered any deals for retail assets in 2020, which in the face of COVID-19 should hardly come as a surprise. On the other hand, we have seen increased activity in logistics and industrial properties compared to 2019. These involved a few transactions where factories were shut down and production was moved to lower labour cost destinations.
The share of development / redevelopment properties also jumped in 2020 from 8% to 15%. The vast majority of these properties were brownfield land plots in Budapest.

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