MNB: the activity of the commercial real estate market may increase with economic growth

By: Trademagazin Date: 2024. 04. 25. 10:10

After the vacancy rates in the office market and industrial-logistics continued to rise in 2023 with subdued demand and significant new transfers, the activity of the commercial real estate market may increase in 2024 through economic growth – the central bank’s expert concluded at the Magyar Nemzeti Bank’s (MNB) online press conference on Thursday.

Ádám Banai, the managing director of the MNB, explained the bank’s latest report on the commercial real estate market and said that the negative economic performance in 2023 also had an impact on the commercial real estate market, as a result of which unutilized properties appeared in all areas except hotels.

He added: in 2024, economic growth and improved earnings will have a positive effect on the commercial real estate market, and it is also important from the point of view of lending that the banking system is strong and its market exposure is much lower than it was before.

Talking about the details, head of department Sándor Winkler reported that in 2023, macroeconomic processes did not support business real estate market activity, rental and investment demand. At the same time, this year’s 2-3 percent GDP growth may increase the demand for commercial real estate, he added.