Hungarian residential and business expectations have reached a five-month high, according to the August GKI business survey. 38,000 sqm of modern office space was added in Budapest in the second quarter of 2023. The JYSK retail chain continues to expand, opening two new stores at the end of August. The K6 office building next to Astoria has found a new owner. The former industrial building on Kazinczy Street, known as Kocka, is to be demolished to make way for a six-storey hotel. In shopping malls and retail parks, mobile data can be used to help property managers more effectively decide where to place a branded store. Nearly two-thirds of investors would pay a significant premium for companies operating in line with ESG priorities. Below is a selection of recent economic, real estate and retail news.
Is the Hungarian economy starting to find its feet?
Hungarian household and business expectations have reached a five-month high, according to the August results of the GKI business survey. The GKI Business Confidence Index rose modestly in August, after July, but the big drop in June was still not fully recovered. In the last month of summer, the outlook improved in all sectors except construction.
38,000 sqm of modern office space added in Budapest in Q2 2023
The total modern office stock in Budapest currently amounts to 4,334,880 m2, including 3,536,690 m2 of modern speculative office space in categories A and B, and 798,190 m2 of freehold office buildings. In the second quarter of 2023, the modern office stock in Budapest was expanded by three new office buildings, totalling 38,000 m2. The F99 Office Building (14,040 m2), Roseville (15,540 m2) and BudaPart Downtown (8,420 m2) were completed.
One of the most active real estate consultancies in Hungary is moving
Colliers Hungary Kft. and Market Asset Management Zrt. have signed a long-term lease agreement, under which the investment and consulting company specializing in commercial real estate will move to BEM Center. The BEM Center is a hotel and office development on more than 22,000 square meters of space in the immediate vicinity of the Buda Danube shore, with the international investment and consulting company specializing in commercial real estate finding its place on the fifth floor of the hotel, covering nearly 800 square meters.
JYSK retail chain continues to expand, opening two new stores at the end of August, this time in Solymár and Mór. In the 2022/2023 financial year, the company has already opened one new store and will open two more by the end of 2023. In addition to the store openings, existing units will be continuously renovated.
The area of the Mercedes factory in Kecskemét is being doubled
Mercedes is investing more than a billion euros to expand its Kecskemét plant. As part of the investment, the existing production site in Kecskemét will be extended with new production halls, resulting in a significant increase in the built-in area. Construction of the new facilities for the body and assembly production line has already started and will be complemented by a significant modernization of the factory's polishing plant.
The K6 office building next to Astoria has found a new owner, according to REM Group, the company behind the transaction. The property was last reported in 2018, when it was owned by a Hong Kong investor, but now the buyer is a Hungarian investment company.
A hotel is being built on the site of the well-known Kazinczy street building
The former industrial building on Kazinczy street, known as Kocka, is to be demolished to make way for a hotel, according to the Architect Forum. The building was originally built in 1880-81 as a tenement house with 10 flats, and over the years it has served a variety of functions. The current demolition is justified by the fact that a six-story hotel will be built in the area by combining five plots.
A miracle weapon tells malls: where to place which store
Technology really knows no boundaries. Just when we discover a revolutionary new solution, the next one comes along. In shopping malls and retail parks, mobile data can be used to help property managers more effectively decide which branded shops to put where, so that everyone benefits.
Amazing extremes: real estate prices range from 30,000 to 3 million HUF per square meter
This year, on average, buyers spent 1 million HUF - or 3% - more than last year on home purchases, while in Budapest, the average cost of buying a home has increased by more than 2 million HUF. In the Hungarian real estate market, the price per square meter ranges from 30,000 to 3 million HUF, according to Duna House data. In the first half of the year, almost half of the properties in the capital were sold for over 1 million HUF per square meter.
More and more employees want their employer to be involved in environmental protection
The labour market is constantly changing and will soon be shaped most by Generation Z. Born between 1997 and 2012, this generation is now entering the world of work en masse, where their unique values and aspirations are subverting the labour market as it is known today. A survey reveals that, in addition to the need for flexible working hours, 51% of these workers believe it is important that their employer is involved in environmental issues, and 48% prefer to work for a company that does activities for the community.
Nearly two-thirds of investors would pay a significant premium for companies operating in line with ESG priorities
Sustainability aspects are increasingly being incorporated into decisions related to international investments. According to a survey, more than half of the respondents reported that the deals were canceled due to important findings made during the ESG due diligence, and nearly two-thirds of investors would even pay a significant premium for companies operating in accordance with ESG priorities - according to KPMG's research.
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