The industrial and logistics sector has been booming in Hungary, with leading Central and Eastern European industrial park developers and operators and Hungarian players active.
The market has expanded on the back of growing logistics demand and the need for space to meet significant foreign direct investment, notably in the electric vehicle and EV-related industries.
It continues to thrive, despite concerns about moderating demand expressed by some analysts, notably in logistics. Analysts see fewer speculative development project starts, while BTS projects, particularly in the production sector in regional hubs, are expected to gain momentum.
All industrial developers at the higher end of the market are developing in line with demand for more highly specified, sustainable industrial and logistics space to keep pace with market demand and ESG-related expectations and regulations.
Continued significant industrial demand from Asian manufacturers and automotive suppliers is expected, with 472,000 sqm under construction, according to Cushman & Wakefield.
The vacancy rate has risen to about 12% amid sustained speculative development over recent years. At the turn of the year, the total modern industrial stock in Hungary amounted to 6.1 million sqm.
In Greater Budapest, the modern industrial stock exceeded four million sqm, while that in the Hungarian countryside beyond the capital has surpassed two million sqm, according to the Budapest Research Forum, which comprises CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary.
Overall vacancy stands at about 11% aginst the backdrop of strong development activity. This figure is actually 12.8% in Greater Budapest, but in the secondary cities, vacancies are 8.6%.
Prime Investment
Reflecting the dynamism in the market, industrial is seen as a prime investment possibility.
“The industrial asset class remains a favorite among investors, even if the fundamentals have weakened (with a large pipeline and flat demand). We should witness more transactions in big box logistics in particular from HelloParks, which has started to dispose of assets in the platform on an individual basis,” says Benjamin Perez-Ellischewitz, principal at Avison Yong Hungary.
“At Innovinia, we observe a resilient industrial-logistics demand landscape so far; however, given the rapidly shifting international environment, the real estate market must also navigate a degree of unpredictability,” comments Balázs Czifra, director of sales, asset management and business development at the company, which was previously called Infogroup.
“While traditional logistics remains a fundamental pillar, the primary growth engine has shifted toward high-tech manufacturing and complex assembly, particularly within the advanced automotive components and electronics sectors,” he notes.
“Geographically, we are seeing a strategic shift beyond the capital. While Greater Budapest remains a vital logistics hub, regional destinations such as Debrecen, Kecskemét, Nyíregyháza, and Pécs are experiencing unprecedented demand,” Czifra says.
“This trend is driven by their strategic proximity to major OEM plants and the localized availability of a specialized technical workforce, which is becoming a decisive factor for high-value industrial investment,” he adds.
The theme of the Hungary stand at the recent annual MIPIM spring real estate conference and expo in Cannes, France, was, once again, “Industrial Excellence,” reflecting the significant FDI Hungary has attracted and the resulting boom in the industrial development markets in Budapest and regional centers to meet that demand. Hungarian I&L representatives attending MIPIM included HelloParks, Innovinia, inPark, Faedra, and Wing Industrial.
Stable but Selective
Ferenc Gondi, managing director of CTP Hungary, says that the industrial market will remain stable yet increasingly selective. He believes demand will come from production and logistics in equal volumes. Geographic diversification will increasingly be in focus.
“Occupiers will continue prioritizing energy-efficient, ESG-aligned buildings that reduce operational costs and support long-term goals. Development activity is likely to concentrate on future-proof, high-spec projects, while investment appetite will favor institutional-grade assets in prime logistics hubs,” he says.
“Although external economic pressures remain, Hungary’s strategic position, strong FDI base and a well-established logistics infrastructure provide a solid foundation for continued demand in the industrial and logistics segment,” Gondi adds.
One of the largest recent transactions was an 80,000 sqm pre-lease in CTPark Budapest Érd.
iO Partners has traced a total stock of close to four million plus sqm of industrial stock in the Budapest area. A further 308,000 sqm was under construction as of the turn of the year. As much as 50% of that demand is from Asian firms.
Outside of the Greater Budapest area, as of Q3 2025, developer-led logistics stock has exceeded two million sqm. Of the buildings under construction in Hungary in the third quarter of 2025, 20% were built-to-suit, 18% were fully pre-leased, and the remaining 62% were speculative.
“Current and future demand plays a crucial role in shaping the balance between speculative and build-to-suit developments. As tenant requirements become more specific, BTS projects gain traction, particularly for large-scale logistics operations,” comments Valter Kalaus, managing partner of Newmark VLK Hungary.
“However, a relative lack of modern stock in certain areas and strong demand for immediate occupancy keeps speculative development relevant. Developers must balance risk and flexibility to remain competitive,” he adds.
“Due to current market unpredictability, we maintain a strategic preference for BTS projects to ensure stability and precise alignment with tenant requirements. Simultaneously, we continue to launch speculative developments, as we believe our prime locations, superior building quality, and long-term ownership model provide a strong guarantee for securing high-quality tenants,” says argues Czifra of Innovinia.
“Our speculative buildings are intentionally engineered with a flexible, modular approach, ensuring they can be easily customized to meet specific individual needs. This balanced strategy allows Innovinia to remain agile while providing the high technical standards the modern market demands,” he adds.
“At Innovinia, we remain firmly convinced that the industrial sector is the most resilient and attractive asset class for long-term investment. The ongoing structural shift toward regionalized manufacturing and the increasing demand for high-specification, sustainable assets ensure that industrial properties will continue to outperform traditional commercial real estate. However, the era of ‘easy growth’ has been replaced by a more selective market where building quality, energy independence, and technical flexibility are the primary drivers of value,” Czifra concludes.
This article was first published in the Budapest Business Journal print issue of April 10, 2026.
