IFK: a new growth cycle has begun in real estate development

Industrial investments drive the market

Between 2023 and 2025, more than 23 billion euros of working capital arrived in Hungary, mainly in the form of industrial investments. As a result, demand for industrial properties in the countryside doubled compared to the previous year, the modern stock exceeds 17 million square meters, and a further 2.5 million square meters of development is underway. The most dynamic regions are: Debrecen, Miskolc, Szeged, Békéscsaba, Gyula, Baranya County and Pécs.

Rural growth is also supported by infrastructure developments and the presence of universities, which provide a stable supply of professionals for new facilities.

Housing market turnaround and the impact of Otthon Start

2025 brought a clear turnaround in the residential real estate market: the number of constructions, demand and transaction volumes increased. In addition to buyers coming from savings, the preferential loans of the Home Start Program announced in the summer are also stimulating the market.

However, the IFK warns that at least 25 thousand new apartments would be needed annually to renew the stock, while only 16 thousand will be completed this year. The scarcity of supply is expected to result in further price increases.

Transforming office and hotel market

The Budapest hotel market has set itself on a growth path: nearly 2,200 new hotel rooms will appear on the market in the next two years. Developments are mainly taking place in the budget and midscale categories.

On the office market, however, the completion of state relocations in 2026 is expected to increase the vacancy rate above the current 14 percent. For this reason, functional change projects, where offices can be converted into hotels or residential properties, are gaining an increasing role.

Outlook: sustained growth, but predictable regulation is needed

According to IFK’s analysis, Hungary is in a good position to remain on a sustainable growth path in the long term, which is also supported by GDP expansion, industrial capital investments and a favorable financing environment. At the same time, sector players are calling for predictable regulation – especially the stabilization of the 5% VAT rate for new homes – because this is a basic condition for further growth in development volume.