Leading industry decision-makers recently gathered in Budapest for the 6th annual CRE Awards and CEO Networking Forum. The event featured a series of discussions on the current state of the logistics, warehousing, office, investment, retail, and residential markets. It was a high-impact day filled with insightful discussion, culminating in a traditional curtain-raiser for the evening gala awards.
Speakers agreed that the real estate market is slowly finding its footing again. Investors are showing signs of renewed confidence, increasingly focusing on new investments, particularly in the Core+ to Opportunistic segments. At the same time, foreign capital is beginning to set its sights on the market, adding to the cautious but growing sense of optimism.
With the recent decline in interest rates, there are early signs of a slight upturn in the market. Across all asset classes, there is growing recognition of the importance of energy efficiency and certifications. At the same time, innovative construction techniques and the use of ecological building materials are becoming key differentiators in the market.
The industrial and logistics markets are set for growth, driven by nearshoring, e-commerce, and strategic location advantages. “Key trends include rising demand for sustainable, ESG-compliant assets and portfolio diversification. Despite liquidity challenges, potential interest rate cuts could boost capital and leasing activity. The region will benefit from Western demand, with opportunities in automation, AI-driven logistics, and addressing supply-demand gaps,” commented Szymon Ostrowski from Newport Logistics Fund.
“Opportunities are emerging for existing properties through green revitalisation efforts. These projects aim to make older properties more environmentally friendly and sustainable, addressing growing investor and regulatory demand for green real estate,” said Vladimir Bily from Gleeds.
Hubert Abt from workcloud24 commented: “Portfolio owners are increasingly recognizing the need to restructure their properties to meet modern ESG (Environmental, Social, and Governance) criteria. This shift indicates that the market is not just recovering but is also evolving to align with broader trends in sustainability and responsible investing.”
Speakers emphasized the importance of strategic investment, smart technology, and collaboration in achieving sustainability and long-term value in the real estate industry. In the residential sector, key topics driving the future include decarbonizing real estate portfolios, creating new living spaces, and reducing construction costs through serial construction.
Peter Szamely from Hypo Noe added, “Modern living concepts, such as student housing, shared living, and senior housing, are also gaining traction. These trends reflect a broader recognition that the industry must evolve to meet shifting demand and regulatory requirements.”
Panelists agreed that certain sectors, like retail, continue to demonstrate resilience. “Whether in stand-alone formats or mixed-use developments, retail is proving its ability to weather the market, commented Tomislav Petkovic, Head of Real Estate Balkans, AmRest.
Csaba Zeley from ConvergenCE commented on the local office market. “The Budapest office market remains stable. The market, particularly in prime locations, is experiencing renewed demand, provided the properties meet high sustainability standards. However, construction activity has slowed.”
He added, “As an important business hub, Budapest is a fantastic place to boost expansion plans. Busy and popular locations with ease of access have created high demand for top quality working spaces from local companies and workforces across Budapest and the wider city.”
Despite the overall optimism, significant challenges remain. MPC’s Jovana Cvetkovic said, “Building regulations, technical specifications, and bureaucracy all require modernization to facilitate the industry’s ability to adapt to new realities. Denis Cupic, Partner Redserve added, “Many outdated properties are in dire need of energy efficiency upgrades, and while AI and technology are often touted as solutions, it will take more than hype to bring these buildings up to modern standards. Laws and regulations regarding energy upgrades, in particular, need to be simplified to make improvements more feasible for property owners.”
In conclusion, while the real estate market is far from fully recovered, the signs of improvement are encouraging. Institutional investors are slowly regaining confidence, and momentum is building in key sectors. However, the road ahead will require ongoing reforms, particularly in regulatory frameworks, to fully unlock the potential of the market and meet the evolving demands of investors and society.
