MNB: before a slow turnaround, the commercial real estate market

By: Trademagazin Date: 2024. 10. 24. 10:51

The lower-than-expected GDP growth has not yet been able to significantly support activity on the commercial real estate market, but the market cycle may have reached its bottom, said Tamás Nagy, director of the Magyar Nemzeti Bank (MNB), at the central bank’s online press conference on Thursday.

Presenting the MNB’s latest commercial real estate market report, the expert said: according to the central bank’s expectations, accelerating, broader-based GDP growth can mitigate the cyclical and structural risks that continue to characterize the operation of individual sectors.

Demand in the office market and in the industrial-logistics market is still moderate compared to recent years. Due to the new transfers, the vacancy rates have increased and will probably increase even more in the short term, the central bank does not see a high risk in this.

The office staff and the industrial-logistics staff will be significantly expanded nationally and in the capital as well. The volume of development in the industrial-logistics area is record high, the stock will increase significantly in the next two and a half years, primarily due to large industrial investments – he explained.

In contrast to several countries in the region, investment turnover in Hungary still decreased year-on-year in the first half of 2024, but with stagnant yield levels, Tamás Nagy pointed out.