Hungary Investment Outlook 2026. Economic recovery gains momentum

Hungary’s economic outlook for 2026 [leech=http://]points[/leech] to a gradual but strengthening recovery. GDP growth is projected at 2.4%, with household consumption emerging as the primary driver of momentum. Stabilising real wages and moderating inflation are improving consumer confidence and creating a more predictable macroeconomic environment for occupiers and investors alike.

Investment volumes rebound

Hungary’s investment market showed clear signs of recovery in the first half of 2025, recording year-on-year growth of 55%. Momentum strengthened further in the second half of the year, bringing total annual investment volume to €880 million. With one additional large transaction still in the pipeline, total volume could exceed €900 million. While seven large deals accounted for most of the value, transactions below €25 million continued to dominate by number, reflecting a cautious yet broadening investor base.

Office market shifts toward repositioning

Budapest’s office market enters 2026 with limited new supply and a shrinking speculative development pipeline. Of the 472,000 sq m currently under construction, approximately 83% is tied to government-led BTS projects. With vacancy expected to rise, the market cycle increasingly favours repositioning and repurposing existing assets to align with evolving occupier requirements rather than large-scale speculative construction.

Logistics driven by regional demand

The logistics sector enters 2026 with solid momentum. Take-up increased sharply year on year, led by strong demand outside Budapest. The share of lease renewals fell to 31%, signalling growing tenant confidence and a shift toward expansion-driven activity rather than defensive renewals.

Retail market remains balanced

Hungary’s retail property market maintains a stable supply outlook with modest development activity. Retail park stock remained unchanged at 1.7 million sq m in 2025, although the pipeline is expected to pick up, with around 55,000 sq m planned through 2026. This suggests cautious optimism among developers regarding consumer spending trends.

Hotels benefit from international demand

Budapest’s hotel market delivered strong performance during the first three quarters of 2025. RevPAR increased by more than 4% year on year, driven primarily by higher occupancy levels. Robust topline growth is expected to continue into 2027, supported by a growing share of high-spending international visitors.

As reported by International Investment experts, Hungary’s 2026 outlook presents a balanced investment environment. Moderate economic growth, recovering transaction volumes and structural shifts across office, logistics and hospitality sectors create opportunities for investors focused on active asset management and long-term value creation.