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Real Estate Development

Market Demands Everhigher Quality Assets

Regardless of sector, developers face challenges in the planning, development and construction processes. Potential difficulties include sourcing affordable finance, long-term demand, establishing efficient asset management, ESG issues at every turn of the project life cycle, not least the provision of an exit strategy.  13

Hotels an Attractive Development Option

The hotel and leisure sector has become an ever more popular development option as Budapest attracts a rising number of visitors; Budapest Ferenc Liszt International Airport saw its highest annual passenger traffic to date at 17.6 million in 2024.  22

Discovering the Iconic Hungarian Trapper Jeans Brand in Buda

One fine afternoon, David Holzer and his Hungarian wife were out for a stroll on the Buda side when they discovered the Trapper store on Fő utca.

“My first ever jeans were Trapper,” she recalled wistfully.  17

Shaping Next Gen Work Spaces

September Inflation Still Above Target

Aurelia Luca, EVP of operations for Hungary and Romania at Skanska, discusses the firm’s history in Hungary, how it leads on pushing sustainability, its present and future projects, and how its Swedish roots still influence all it does today. 17

Hungarian consumer prices stagnated in September compared to the previous months. The 4.3% inflation rate remains above the National Bank of Hungary’s target, and some analysts now suggest it may only be permanently reached at the beginning of 2027.  3

Much of Budapest’s business elite gathered at the annual Business Council for Sustainable Development in Hungary lunch to celebrate corporate leadership in sustainability.  7

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Éva Bodor, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

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THE EDITOR SAYS

PRAISING EVIDENCE OF TRANSFORMATION

If there is an underlying theme running through this issue, it is how mainstream sustainability is becoming, almost regardless of industry. For all the cynicism that lies behind accusations of “greenwashing,” or perhaps it would be more accurate to say because of it, there is now a real drive toward transparency in the claims companies make.

“Hungarian companies are beginning to understand that sustainability is not a cost, but a long-term investment in resilience,” says Attila Chikán Jr., CEO of listed energy business Alteo Group, and, more importantly for the sake of this particular argument, president of the Business Council for Sustainable Development in Hungary.

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As we report inside, the BCSDC was presenting its annual “For a Sustainable Future” awards, and the council was keen to make the case. As one of the organizers put it: “We see a clear shift toward measurable impact. It’s no longer enough to make commitments; companies are expected to show tangible progress. The ‘For a Sustainable Future’ award recognizes exactly that: evidence of transformation.” While you might argue that the BCSDH would say that, it is hardly alone in making the case.

Expats of a particular vintage, and I will gladly admit to being one of those, will know Stephen Saracco, by reputation if not socially. As a side hustle, he was part of a group that bought the 6:3 Borozó a few years back, a wine bar dedicated to the memory of a famous soccer game in which Hungary’s “Golden Team” dismantled the myth of English football invincibility at London’s old Wembley Stadium in 1953.

Saracco has also appeared in several small parts in films and TV series as a supporting actor, and most recently shared a scene with Adrien Brody in “The Brutalist.” But his business is construction, and while in Budapest, he worked for Citi, CIB Bank, and CBRE, among others. He was involved with delivering the CEU building on Október 6 utca, for example, not to mention the 45,000 sqm ExxonMobil office campus in Budapest during COVID. He is now working on public facilities back in Boston, where he says sustainability plays a huge role.

“Boston’s climate targets are among the most ambitious in the country. We’re required to build all-electric, eliminate carbon-based fuels, and pursue net-zero goals. [….] It’s real, and it’s happening fast,” he tells us.

Something similar is happening here. One of the experts we spoke to for the Market Talk feature in our Special Report dedicated to Real Estate Development told us, “ESG is no longer optional for development and redevelopment; it’s a structural part of project feasibility and value creation across office, industrial, hotel and retail. EU regulations [.…] are raising minimum technical and disclosure standards, while capital markets and occupiers are pushing for measurable outcomes.”

Whether it is companies that are “expected to show tangible progress,” and “evidence of transformation,” or capital markets and occupiers “pushing for measurable outcomes,” it seems that ESG is more deeply embedded than ever, and that is not a trend that will change any time soon.

Robin Marshall Editor-in-chief

THEN & NOW

black and white photo from the Fortepan public archive,

Marx

along

Budapest,

runners passing the junction of

utca during the first Ibusz Budapest Marathon, held on April 14, 1984. In the color image from state news wire MTI, taken on Oct. 12, 2025, participants are seen moving along Pázmány Péter sétány in Újbuda during the 40th edition of the Spar Budapest Marathon, marking four decades of the city’s premier long-distance running event.

1News • macroscope

September Inflation Still Above Target

Hungarian consumer prices stagnated in September compared to the previous months. The 4.3% inflation rate remains above the National Bank of Hungary’s target, and some analysts now suggest it may only be permanently reached at the beginning of 2027.

Consumer prices were 4.3% higher on average in September 2025 than a year earlier. Compared to August, prices were unchanged on average. Increases in food prices had slowed to 4.7% in September from 5.9% in August. An average of 10.6% more was paid for electricity, gas, and other fuels, with natural and manufactured gas being 23.4% more expensive and electricity 2.3% more expensive. Alcoholic beverages and tobacco prices rose by 7.1%, with the cost of tobacco increasing by 8.7%, according to the latest report by the Central Statistical Office (KSH).

On a monthly basis, food prices lessened by 0.2%, mainly due to a 4% decrease in the cost of seasonal food items. Overall, September consumer prices were slightly better than predicted.

“In September, inflation was slightly more favorable than analysts’ expectations, with an annual price increase of 4.3%, similar to the previous two months, while consumer prices remained unchanged on average on a monthly basis. Following the surge at the beginning of the year, inflation processes have, therefore, stabilized, and in fact, core inflation, which describes fundamental inflation

Inflation trends in Hungary (September 2023-2025)

Price index, consumer prices

processes, has again remained within the central bank’s tolerance band,” Dániel Molnár, of economic think-tank GFÜ Gazdaságkutató, commented on the fresh data.

He added that household energy continued to drive inflation upwards, contributing nearly 0.5 percentage points to overall inflation in September. This is due to the higher heating demand caused by the cold weather at the beginning of the year, which, because of the methodology used, results in a persistently high price increase. This is only expected to subside next year, provided milder weather and energy efficiency measures by households reduce heating demand. Others think the market impact of the fresh inflation data would be minimal.

“The annual inflation data, which was essentially in line with our preliminary expectations (4.4%), was brought by the typical during-the-year seasonality of the pre-COVID years, so it is not a particular surprise, and as a result, its market impact may be minimal. The domestic indicator, which significantly deviated from the inflation target band at the beginning of the year, continues to be above the upper limit of the target band, for the tenth month now,” Péter Kiss, investment director of fund management company Amundi, says.

Strong Forint Helps

According to Orsolya Nyeste of Erste Bank, several administrative pricelimiting measures and the strengthening of the forint have contributed to moderating inflation compared to the high levels at the beginning of the year.

“It is favorable that the monthly price index stagnated in both August and September, in which seasonal effects also played a role. However, the annual indicator is still above the target range, despite the fact that margin caps artificially distort downwards,” she said.

As for the remainder of this year and the early part of

2026,

analysts’ forecasts vary slightly.

“According to our expectations, the inflation rate may remain above the central bank’s [2-4%] tolerance band until the end of the year. In a favorable case, it may return to below 4% by the end of the year, but according to our forecast, this will definitely happen in January, with the elimination of the significant price increases at the beginning of this year,” Molnár of GFÜ said.

According to him, the data from recent months clearly shows that there is no significant price pressure in the economy. The overall rate of monthly price changes does not deviate from historical levels, and the stronger forint exchange rate also means favorable prospects.

Areas of Uncertainty

The most significant areas of uncertainty for the inflation path are the exchange rate, the extent of revaluations at the beginning of the year, the weather (through overhead prices), and the timing of the elimination of margin regulations.

Source:

“We expect that the rate of monetary deterioration may remain within the central bank’s tolerance band throughout next year, but close to the 4% upper level. The central bank’s target may only be reached permanently at the beginning of 2027. On an annual average, this year’s 4.6% inflation may be followed by

3.6%

next year,” Molnár says. Erste’s Nyeste says her colleagues continue to see risks as more balanced. The recent development of industrial producer prices, subdued energy and imported product prices, and the stronger forint are expected to continue to support the decline in inflation. At the same time, the elimination of the price-cap measures introduced by the government may result in a one-off spike in inflation.

However, the timing of this is very uncertain, and there is a good chance that these measures will remain in place beyond the end of November, she adds. However, based on the current data, it seems increasingly certain that if the margin stops are not eliminated by the end of November, inflation could return to the central bank’s target range by the end of the year.

“We expect to see a higher inflation figure in October, and then a spectacular decrease from November due to base effects. In addition to the stability of the forint exchange rate, this scenario may bring up the issue of resuming interest rate cuts at the end of the year,” according to Amundi’s Kiss.

‘2 Pipelines Better Than 1’ Hungary Insists

Despite U.S. and EU calls to phase out Russian oil and gas since the country’s invasion of Ukraine, Hungary has in recent weeks doubled down on justifications for maintaining its supply of cheap energy imports, citing both popular demand and environmental reasons, while warning of the hazard posed by limiting any of its available options.

A “sweeping majority” of FideszChristian Democrat alliance supporters backed what Századvég described as “the dominant, pragmatic position” of maintaining trade relations with Russia.

sense,” noting that “Ural [Russian] crude is cheaper than Brent [North Sea], gas from the East is cheaper than gas from the West, and two pipelines are better than one.”

Roundup Crisis

‘Enormous Problems’

On Friday, Oct. 10, Janaf suspended deliveries through the Adria to Serbia. That demonstrated that relying on a single pipeline for crude oil deliveries poses “enormous problems” for any country, Szijjártó said.

“It is clear what kind of problems can arise if a country relies on a single crude pipeline, in this case from Croatia,” the minister said, stressing that Hungary must avoid falling into a similar situation, where it would be dependent solely on one crude delivery

The decision by Janaf came into force on

Oct. 9,

after the United States imposed sanctions on Serbia’s oil company NIS, the country’s biggest oil importer and one of Russia’s last remaining energy assets in Europe, after a series of waivers that had delayed the measures expired. Serbia’s President Aleksandar Vučić said in a televised speech that, without deliveries, the NIS refinery, which supplies most of Serbia’s oil products, including gasoline and jet fuel, would struggle to operate beyond Saturday, Nov. 1.

According to a recent survey from conservative think tank Századvég, some two-thirds of respondents said they were against a ban on Russian energy imports. The pollster pointed out that opinions were broadly divided along political lines. While 59% of the rightist opposition Tisza Party supporters favored a ban “even if that would entail significant energy and fuel price hikes,” a decisive 96% of ruling party affiliates opposed it.

On Thursday, Oct. 2, State Secretary for Energy Gábor Czepek made the familiar argument at a professional forum in Szeged (175 km southeast of Budapest by road) that ceasing energy imports from Russia would harm Hungary’s competitiveness by raising overall energy costs by roughly 20%. He argued that divesting from this fossil fuel would divert resources from the green transition and added that the country does not see gas as the battleground for reducing emissions.

Czepek said Hungary’s economy could not afford to abandon a favorable energy source, despite

years of efforts to diversify its energy supply. He emphasized the need for energy policy to be guided by “common

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Managing Partner

Named at Grant Thornton Hungary

Gábor Szarka has been appointed the managing partner of Grant Thornton Hungary, effective from Sep. 1, succeeding Waltraud Körbler, who led the company for more than three decades. Szarka brings more than 25 years of experience in the financial and consulting sectors, including 10 years at Grant Thornton Hungary, the company tells the Budapest Business Journal . Prior to joining the firm, he gained valuable expertise in banking and real estate development at Big Four companies.

At Grant Thornton Hungary, he has led diverse areas, including business valuation, transfer pricing advisory services, and outsourcing, and has played a pivotal role in developing internal functions and launching innovative advisory services.

He has also been instrumental in aligning the firm’s local operations with the global network.

As managing partner, Szarka says he sees his most exciting challenges as developing the team, deepening collaboration, and enhancing the visibility of the Grant Thornton brand in Hungary.

“I would like Grant Thornton to be as highly regarded and well-

At a parliamentary hearing before the economic committee on Thursday, Oct. 9, Minister of Foreign Affairs and Trade Péter Szijjártó echoed this sentiment almost word for word.

“Two crude pipelines are better than one,” he said in response to questions about a potential cutoff of Russian crude deliveries via the Druzhba (Friendship) pipeline, which originates in Samara, near the confluence of the Samara and Volga rivers. He emphasized the importance of diversification, particularly if Croatia’s Adria pipeline is unable to meet the full demand for crude in Hungary and Slovakia. Szijjártó bemoaned that Adria’s operator, Janaf, has raised transit fees to five times the European benchmark since the war in Ukraine began.

positioned in Hungary as it is in the United States or Western Europe, and for colleagues to truly feel proud to work here. This shared culture, unity, and professional excellence will be one of the cornerstones of our success,” he emphasized.

“Throughout my career, I have always been guided by openness, mutual respect, and integrity. These values are especially important in a profession where human relationships are just as vital as technical expertise,” Szarka added.

Under his leadership, the Hungarian firm will continue to support clients at the highest professional level, while further strengthening its market position by expanding both existing services and new capabilities.

“It is clear what kind of problems can arise if a country relies on a single crude pipeline, in this case from Croatia.”

Szijjártó said that Serbia could rely on Hungarian oil and gas company MOL to increase deliveries, but emphasized that this could not fully compensate for the loss caused by the Croatian cutoff. The foreign minister did not offer any details about the amount of the planned supply increase or the method of delivery.

“Although our options are limited due to logistical challenges, we are committed to supporting the maintenance of security of supply [in Serbia],” MOL confirmed in a statement.

Improvement in Investor Sentiment Registered at Expo Real

There was a distinct improvement in the mood and feeling at Expo Real 2025 compared to the previous year. The cautious attitude from investors has bottomed out, and the only way is upwards regarding investor sentiment, says Péter Takács, partner at Newmark VLK Hungary.

The annual international real estate and investment event in Munich is seen as an excellent barometer of the mood of professionals at a time of upheaval in the markets concerning ESG, technology usage and international socio-political instability.

Around 42,000 participants from 70 countries attended the threeday event at the Messe München exhibition center. Newmark VLK Hungary participated as part of the first Newmark stand at Expo Real with around 70 representatives from the Czech Republic, France, Germany, Poland, Spain, the United Kingdom and the United States, as well as Hungary.

Takács sees a reactivation of the investment markets in Central Europe, with the region back on the radar screen of international investors. Once transactions have been completed, there will be increased liquidity and, therefore, the markets will be able to attract even more investment.

However, to put the recovery in Hungary in context, the recent purchase of the Palladium shopping center in Prague by Reico (a fund owned by Erste Group) for a reported EUR 700 million is equal to recent total investment volumes for Hungary. The Czech Republic and Poland are currently the favored Central European investment destinations, which is reflected in annual investment volumes and the significant yield differentials between Hungary and these leading CEE markets.

Notable Deal

“In Hungary, transactions tend to be significantly below EUR 100 million. A notable recent deal in Budapest is the acquisition of the 30,700 sqm Science Park in Budapest by Recorde Asset Management, in strategic partnership with Chapel Hill Capital,” comments Péter Takács.

As international investors are outpriced by the dominance of local investors in the Czech Republic, investors could

Recorde Asset Management Acquires Science Park

Recorde Asset Management, in strategic partnership with Chapel Hill Capital, has announced the acquisition of the 30,700 sqm Science Park, located in District XI. This marks one of the most significant office transactions of 2025 in Hungary, according to Recorde Asset Management.

GARY J. MORRELL

Science Park is seen as a “dominant, category ‘A’ property hosting a balanced set of multinational and domestic companies with a strong bias towards technology-driven industries.” Concentrated energy efficiency measures have resulted in competitive operating costs, and the complex has achieved BREEAM “Excellent” sustainability certification.

The purchase was completed by the Recorde Science Park Real Estate Investment Fund vehicle managed by Recorde AM, in partnership with Chapel Hill as co-investor/general partner and asset manager. Erste Bank Hungary provided acquisition financing for the transaction.

“Science Park fits well into Recorde’s strategy of seeking out high-quality, value-add investments with skewed risk and reward potential for our investors, and we believe our partnership with Chapel Hill will provide the optimal platform for the property to thrive in the years ahead,” says Gábor Kutas, founder and CEO of Recorde AM.

James Kinnell, managing director of Chapel Hill Capital, adds: “We are fully aligned and motivated to execute our business plan, aiming to further bolster the asset’s occupancy, operating efficiency and sustainability credentials and thereby creating tangible value for all stakeholders.”

Recorde is an alternative investment fund manager, established in 2023 as a member of Concorde Group with the aim of building a pan-European real estate investment platform by leveraging strategic partner relationships.

This article is supported by:

Real Estate Matters

A biweekly look at real estate issues in Hungary and the region

look to make acquisitions in Hungary with the favorable yield premium that this country provides. National elections in Hungary next year may also remove political uncertainty. With predictable pricing and quality assets available in Hungary, this could lead to market liquidity, making the country more attractive to international investors.

The office sector is seen as an attractive investment and development destination. Newmark VLK Hungary has worked on the purchase of a new quality office building in Buda for an owner-occupier. Hotel is continuing to attract international investors for joint ventures with local money and developers, with 2,000 hotel rooms under construction or planned.

Industrial is an attractive investment option for standing assets, such as the recent 84,000 sqm HelloParks transaction with Erste Open-Ended Fund. Residential is also a favorable development option, and Newmark VLK has worked on the sale of three residential development plots in Budapest.

“There are quality assets in Hungary; with attractive yields and capital values, international investors could follow local investors in Hungary,” Takács concludes.

DRFG Investment Group Buys Bartók Ház

The DRFG Investment Group has completed its first acquisition in Hungary by purchasing the 17,600 sqm Bartók Ház office building in District XI from CA Immo. The transaction is part of the group’s strategy to expand its real estate portfolio further across the CEE region.

“This is an attractive property in a prestigious location that fits perfectly into our long-term strategy for growth and diversification; Bartók Ház is the group’s first office and commercial property in Hungary, yet we already see additional opportunities in this market that we intend to pursue,” comments Jan Pelíšek, director of the real estate division at DRFG. Completed in 2003, Bartók Ház is a Class A office building with BREEAM “Very Good” certification. On the seller’s side, Eston acted as advisor. On the buyer’s side, CBRE was the advisor, legal advisory services were provided by Bird & Bird, and technical advisory services were handled by Sentient. The transaction also involved TriGranit. The firm, which became part of the DRFG Group last year, will be responsible for the building’s asset management and investments.

“We see Budapest and the entire Hungarian market as highly promising,” says Tomasz Lisiecki, CEO of TriGranit, of the acquisition. “With our long-standing knowledge of the market and a strong local team, we identified numerous opportunities for further development. Bartók Ház is a stable asset with a strong tenant portfolio, providing us with scope for further value creation,” he adds.

Antal Dorati International Conducting Competition in Budapest

The Antal Doráti International Conducting Competition has become one of the most important international events in Hungarian musical life over the past decades. It’s latest incarnation will take place this weekend at the Italian Institute.

National in Cannes, and its jury is made up of renowned conductors, institutional leaders, and artistic directors from the international music world.

Hungary (two participants) Israel, Italy, Japan, Latvia, Slovenia, Spain, Taiwan, Türkiye, Ukraine, the United States and Venezuela.

Saturday, Oct. 18 will be the public semifinal, with the final on Sunday at 6 p.m. take place the final in the Grand Hall of the Italian Cultural Institute in Budapest, where the three finalists will conduct the orchestra, each performing a work drawn by lot.

The chairman of the jury is Italian star conductor Antonello Allemandi, with the vice chairman Hungary’s György Győriványi Ráth, the former music director of the Opera of Nice, the Hungarian State Opera, and the Orchestra of the Budapest Philharmonic Society.

The official competition website can be found at antaldoraticompetition. com, while tickets for the event are available on the official website of the MÁV Symphony Orchestra at mavzenekar.hu/en

Residential Emerges as a Major Development Sector Since its inception, the MÁV Symphony Orchestra has been a key professional partner and the resident ensemble of the event, which was founded in 2014 by Italy’s Artes Association in corporation with the Hungarian orchestra. The competition is organized in partnership with the Carlo Felice Opera in Genoa, the Richmond Symphony Orchestra, and the Orchestre

The competition’s first edition in 2014 drew 128 participants from five continents. The second incarnation, in 2018, received 220 applications, while 2021 reached a peak of 350 aspiring conductors from all over the world.

To ensure the contest could be open to as many candidates as possible, the fourth edition this year introduced an elimination phase during the summer in three locations in America and Europe. Countries represented include Azerbaijan, Brazil, China, Colombia, Cuba, France, Germany,

S&P Affirms Hungary’s Investment-grade Rating

Standard & Poor’s has affirmed Hungary’s sovereign credit rating, maintaining the country’s place in the investment-grade category alongside other major credit rating agencies, according to a statement issued on the Ministry for National Economy’s website. Confidence in Hungary’s economy remains robust, the ministry said, citing the repeated oversubscription of bond issues denominated in euros, U.S. dollars and renminbi. Despite global economic headwinds, Hungary has become a reliable destination for investors from both the West and the East, positioning itself as a “meeting point,” it added. The country’s political stability, advanced infrastructure, skilled labor force and strong returns on foreign direct investment continue to attract capital. While Western investment remains significant, the share of FDI from the East, particularly from Chinese and South

Korean firms, is also rising, the statement said, highlighting the recent launch of BMW’s plant in Debrecen (225 km east of Budapest by road), as well as projects by CATL, BYD, Semcorp and EcoPro.

The ministry also pointed to Hungary’s high employment rate, low number of registered jobseekers, rising real wages, expanding household consumption and a strengthening tourism sector.

Industrial Output Down 7.3% y.o.y. as Automotive Slumps 20%

Hungary’s industrial output dropped 7.3% year-on-year in August, the Central Statistical Office (KSH) confirmed in a second reading of data published on Oct. 14. Adjusted for workdays, output declined by 4.6%.

The automotive industry, the country’s largest manufacturing segment, fell 20% y.o.y. in August and accounted for 20% of total manufacturing output.

The production of computer, electronic and optical equipment, representing 13% of the sector, rose 17.4%. The electrical equipment segment, with an 11% share, fell 9.4%, while output in the food, drinks

According to György Lendvai, managing director of the MÁV Symphony Orchestra, the competition is both a tribute to Hungarian musical tradition and a bridge to the international professional community. Established in memory of the Bartók–Pásztory prize winning Hungarian conductor and composer Antal Dodáti (1906-1988), the competition is one of the most presitigious for young conductors, with the winners receiving both monetary prizes and the opportunity to hold the baton in some of the world’s leading concert halls.

and tobacco segment, which contributed 17% to manufacturing, slipped 3.3%.

Compared to July, industrial output fell a seasonally- and workday-adjusted 2.3%. In January-August, output declined 3.9% from a year earlier.

Hungary Aims for Top 10 Global Innovation Ranking by 2040

Hungary’s innovation strategy focuses on agritech, digitalization, and healthy living, while promoting competitive industry-university collaboration, Minister for Innovation Balázs Hankó said on Oct. 14 at the opening of the Knowledge into Value event during the Hungarian University of Agriculture and Life Sciences’ Innovation Week in Gödöllő (35 km northeast of Budapest). Hungary now ranks among the global top 10 for research talent, high-tech exports, and high-tech manufacturing, though it currently places 33rd-34th overall in innovation. The government aims to enter Europe’s top 10 by 2030 and the global top 10 by 2040. Hankó said 12 Hungarian universities are now ranked among the world’s top 5%, up

The Man Behind the Baton Antal Dodáti studied at the Liszt Ferenc Academy of Music alongside Béla Bartók, Zoltán Kodály, and Leó Weiner. After spending several years at the Hungarian State Opera House, he went on to enjoy an impressive international career, conducting outstanding ensembles in many European countries, including the Russian Ballet in Monte Carlo. He was principal conductor of the BBC Symphony Orchestra, the National Symphony Orchestra in Washington, D.C., the Royal Philharmonic Orchestra in London, and the Detroit Symphony Orchestra.

from seven in 2019, with the goal of placing at least one institution in the global top 100 by 2030. He credited recent progress to favorable business regulations, low corporate taxes, and strong R&D incentives, citing World Bank data that places Hungary fifth globally for business environment and public services. Patent applications across Hungarian universities rose from 25 to 183, while R&D funding climbed from HUF 160 billion to HUF 260 bln (EUR 663.6 million), he added.

IMF: Hungary GDP

Growth 0.6% in 2025, Rising to 2.1% in 2026

Hungary’s economy is expected to expand by 0.6% in 2025 and accelerate to 2.1% in 2026, according to the latest World Economic Outlook published by the International Monetary Fund on Oct. 14. The IMF forecast average annual inflation at 4.5% in 2025, easing to 3.5% the following year. The country’s currentaccount surplus is projected at 1.2% of GDP in 2025 and 0.9% in 2026. Meanwhile, the jobless rate is set to decline slightly from 4.3% in 2025 to 4.2% in 2026.

2 Business Business Leaders Embrace Climate

Adaptation at Annual BCSDH Event

Much of Budapest’s business elite gathered at the annual Business Council for Sustainable Development in Hungary (BCSDH) Business Lunch on Oct. 7 at ÖbölHáz in District XI, to celebrate corporate leadership in sustainability and to honor the winners of the 2025 “For a Sustainable Future” awards. The event also marked the graduation of the latest cohort of the Future Leaders Program, underlining the growing importance of climate adaptation and responsible leadership in Hungary’s corporate landscape.

“Hungarian companies are beginning to understand that sustainability is not a cost, but a long-term investment in resilience,” Chikán said. “The transition toward low-carbon operations, renewable energy, and sustainable leadership requires collaboration and innovation across all sectors.”

The keynote speech was delivered by Georgia Rolfe, principal sustainable technologies consultant at Cambridge Consultants, the deep technology division of Capgemini. Rolfe, who leads the firm’s global initiatives in climate adaptation and resilience, addressed how technology can serve as a bridge between environmental responsibility and economic growth.

Leader” explored the human side of sustainability. Moderated by Balázs Báthory, deputy CEO of leading Hungarian construction company Market Építő Zrt., the discussion featured Zoltán Gazsi, founder of the Blue Zone Community, and Tibor Hodik, CEO of Progressive Reklám and natu group.

Systemic Change

The participants reflected on what it means to inspire systemic change, not only through corporate strategy, but through personal example and commitment.

The Future Leaders Program, one of the BCSDH’s flagship initiatives, saw a new generation of young professionals graduate who will shape the country’s sustainable economy in the years ahead. The program aims to cultivate ethical, forward-thinking leaders capable of integrating ESG principles into everyday corporate practice.

A highlight of the event was the presentation of the “For a Sustainable Future” awards, which recognized Hungarian companies and individuals for their excellence in sustainability, innovation, and long-term value creation. Each year, the award honors those who integrate environmental and social responsibility into their core strategies, setting benchmarks for the domestic business sector.

Accelerate Change

This year’s laureates represent a wide range of industries, from energy to construction, technology, and communications, demonstrating that sustainability is not limited to a single sector. The awards underscore BCSDH’s mission to accelerate systemic change and encourage cross-sector collaboration among Hungary’s leading corporations.

In an exclusive conversation after the event, BCSDH representatives emphasized that 2025 marks a turning point in how Hungarian companies approach sustainability.

“We see a clear shift toward measurable impact,” one of the organizers said. “It’s no longer enough to make commitments; companies are expected to show tangible progress. The ‘For a Sustainable Future’ award recognizes exactly that: evidence of transformation.”

The business lunch also offered participants an opportunity to network and exchange ideas on topics ranging from renewable energy and biodiversity protection to circular economy practices. The event attracted representatives from multinational corporations, SMEs, and startups alike, reflecting the growing integration of sustainability into Hungary’s entire business ecosystem.

The Business Lunch, BCSDH’s largest yearly event, served not only as a»networking platform but also as a reflection of how sustainability has moved from boardroom rhetoric to measurable corporate action. The 2025 edition centered around one of the most pressing challenges of our time, climate adaptation, and sought to answer a key question: Is the future of resilience rooted in technology or in nature?

In his opening remarks, Attila Chikán Jr., president of the BCSDH and CEO of listed energy business Alteo Group, emphasized that climate action has become an integral part of business competitiveness.

“Technology can help us adapt to a changing world, but true resilience comes when we design systems that work in harmony with natural processes and human values. Businesses that align these dimensions will thrive in a decarbonized economy,” she said.

Her global perspective and practical examples resonated with an audience increasingly aware of Hungary’s vulnerability to climate change impacts, from water scarcity to energy dependency. As Rolfe herself put it, “Adaptation requires both courage and creativity. It’s about designing future systems where businesses and nature don’t compete, but co-evolve.”

Following the keynote, a thoughtprovoking panel discussion entitled “Beyond the Role of the Business

Hodik shared how marketing and communication industries are evolving to embrace genuine sustainability rather than surface-level campaigns.

“Leaders must understand that responsibility cannot stop at the company gates,” he said. “When executives show that sustainability is part of their personal ethos, not just their business plan, others follow naturally.”

Gazsi added that the essence of sustainable transformation lies in community: “We must reconnect with the values that keep people and nature in balance,” he said. “A leader’s greatest role today is to model this connection in every decision.”

Throughout the afternoon, the event highlighted the results of BCSDH’s professional programs, which this year focused heavily on climate resilience, emissions reduction, and sustainable business models.

The closing remarks reiterated BCSDH’s commitment to continuing its educational and professional programs to strengthen Hungary’s sustainability framework. Initiatives such as the Future Leaders Program and ongoing research into circular economy models will continue to build a bridge between science, business, and society.

By the end of the event, it was clear that Hungary’s sustainable business movement is maturing rapidly. As one participant summarized during the networking lunch: “What we’re seeing now is no longer discussion; it’s implementation. Hungarian companies are learning that being future-ready means being sustainability-driven.”

With this year’s business lunch, BCSDH once again reinforced its role as a hub for responsible business dialogue and innovation, helping to ensure that Hungary’s corporate sector remains aligned with global sustainability goals while addressing local challenges through collaboration, education, and leadership.

The ‘Mind Blowing’ Power and Developments of Generative AI

Hungarian software developer Gergely Kiss outlines the phenomenal development, use and misuse of artificial intelligence now and in the short-term future.

Keen to illustrate the spectacular potential of generative AI to his audience at a British Chamber of Commerce in Hungary event in September, Kiss Googled “Laszlo Gaal non-existent car show” and played the video on a big screen.

A highly professional, animated report followed, just 72 seconds long, featuring short interviews with attendees at a swish electriccar exhibition that looked like it had been filmed at a major exhibition center in North America.

“I don’t know this guy,” Kiss said, “I just found this on YouTube,” as the video played, minus the sound (even the most high-tech IT companies encounter glitches, it seems).

“So, this is an e-car show, right?” Kiss continued enthusiastically, only to add: “But it’s not. This show never happened. These people do not exist.” Those watching were agog.

Kiss, a veteran of the Hungarian IT sector and the founding chairman of Attrecto, a software development company with a 15-year track record, reinforced his point.

“It’s not even sophisticated. It’s not a team of marketing guys [that created this]. It’s just one person trying out the Veo3 app the day after it came out last May,” he said.

Indeed, the explosion of fictitious videos this year has profound implications, especially in the political sphere.

Compromised Reality

“Today, if I open my Facebook page, it’s full of AI-generated, politically motivated videos. One is of [Prime Minister] Viktor Orbán riding a zebra, another is of [opposition Tisza Party leader] Péter Magyar cutting the migrant fence. [...] So, our basis to even decide about reality, what is real and what is not, is compromised in both image and sound,” Kiss cautioned.

Naturally, he emphasized, the use of AI need not be nefarious. It can,

and increasingly is, used to streamline business operations and even bypass expensive “traditional” IT processes.

As an example, Kiss argued that today, someone with no experience whatsoever in writing computer code can nevertheless create software by using a combination of AI tools and the right prompts and instructions.

Although the process is somewhat bewildering for someone unfamiliar with the terms and tools of AI, Kiss indeed produced a management software program and accompanying website without writing any code himself, all within the target time of just one hour.

When asked how this compared to “classical” code writing, he said it might take a team of three or four software developers between four and six weeks of work, costing perhaps

EUR 20,000.

This method, dubbed “vibe coding,” a term coined by Slovak-Canadian computer scientist Andrej Karpathy in February this year, has, in just seven months, developed “a whole industry with education, books, workshops, everything,” Kiss said.

However, he stressed that while vibe coding offers great potential, it is still

in its infancy and cannot produce a product to commercial standards.

Proof of Concept

“I’m not saying that in 60 minutes we will have a [saleable] product. We will have something that looks like a product, which is either a prototype or a proof of concept [...] It’s great [but] it’s not good [enough] to produce production-grade code,” he underlined Vibe coding is, naturally, just one aspect of a plethora of possible applications emerging that use AI. Sensing this potential, companies and states around the world are pouring money into research to stay ahead of the development curve, none more so than the United States.

By way of illustration, Kiss said that, in 2019, Microsoft invested USD 1 billion into OpenAI, the California-based AI company, creating a “huge story,” only to inject a further USD 10 bln in 2023.

“This was even a bigger story, because at the same time, the European Union fund for developing AI was

EUR 6 bln.

So, in America, one company invested more in one other company than the complete budget of Europe in AI,” he said.

“Now, OpenAI [and its partners] is committed to build hardware for USD 500 bln, just two or three years later. This is such a big number. I don’t know much money that is. I don’t know how many houses or Ferraris you can build for that.”

Yet even these sums are dwarfed by plans by Anthropic, another U.S. AI startup, backed by Amazon. According to Kiss, this mega-project involves a sprawling data center across some 1,200 acres (500 hectares) housing 30 different buildings, each bigger than a football stadium. All this for one AI computer system, which will need a nuclear power station to meet its electricity needs.

“It is absolutely mind-blowing what is happening in AI,” Kiss told his audience. “It’s hard to understand, even with the facts in front of your eyes.”

How a Hungarian Software Firm Adopts AI to Enhance Productivity

After 10 years working in IT for multinationals, including Siemens, Audi and SAP, in 2010, Gergely Kiss grew tired of his daily commute.

Along with two former SAP colleagues, he set up Attrecto in his home city of Győr, 125 km west of Budapest by road.

“In Latin, Attrecto means ‘touch,’ [so-named] because we created the company to work with smartphones, which were brand new at the time.

That smartphone world fired our imagination, because, from an engineering perspective, those devices are wonderful, with their [then novel] internet access,” he tells the Budapest Business Journal

The tiny startup set to work developing specialist apps for clients to enhance their user experience. Before long, those

same clients began asking for web development, ultimately pushing Attrecto into what could be termed proto-AI projects, such as chatboxes.

“Around 2015-16, we started AI. At that time, there was no ChatGPT; there was computer vision, algorithms, and then we started to build chatbots. In 2016-17, we built several, mostly for human resources purposes,” Kiss says.

Since the advent of ChatGPT in late 2022, work has increasingly focused on using AI to enhance company productivity.

“Nowadays, our clients often ask: how can I leverage AI in my business process? First, we need to understand that process, then think about how AI can be used. [For example] there is a business process,

and you have to create 26 Word documents each day, because […] you are an inspector. Generative AI can create that document; you don’t have to,” Kiss explains.

Attrecto now boasts an impressive list of clients, including Erste Bank, AIG and Mercedes-Benz. It has a team of some 75 full-time and regular contract employees, with revenues of around HUF 1.3 bln expected this year, half of which originates from abroad. Impressive? Kiss isn’t so sure.

“I’m not impressed! The world is really our world, but still, we have this relatively small company. We have been doing this for 15 years, and I always have the feeling that we could have been much better businesspeople and much more creative.”

Drees & Sommer on Adding Value, Digitalization

Ákos Koloszár, managing director of Drees & Sommer Hungary, speaks with the Budapest Business Journal about nearly three decades of consultancy work in Hungary and the defining trends shaping the market today and tomorrow.

and ‘Urban Mining’

BBJ: Drees & Sommer provides solutions, implements them, or both. What are your main fields of operation globally and, more specifically, in Hungary?

Ákos Koloszár: We are active in three main clusters, namely real estate, industry, and infrastructure. This applies globally, but also here in Hungary. Locally, our strongest focus has been on the automotive industry and logistics, where we support clients with both consulting and implementation services, not only in the production field but also in managing their real estate assets, including expansions, new-builds, and brownfield developments. In the real estate sector, we work with a wide range of clients across commercial properties, hospitality, retail, and financial institutions. Our key advantage is the international scope, combined with a strong local team that brings together deep market knowledge and expertise from Germany, Austria, and other international locations.

BBJ: The consultancy operates internationally, with 6,500 employees based in more than 70 locations, supporting domestic and foreign companies. When did you begin operations in Budapest, and what is the size of your Hungarian footprint today?

ÁK: Our Budapest office was launched back in 1997, when we supported several major international brands with their expansion into the Hungarian market, primarily in the automotive and logistics sectors. Over the years, we have managed to broaden our scope quite significantly and have evolved into a go-to partner for both global players seeking high international standards and local

companies aiming to integrate into the global ecosystem. We work closely with our expert teams in Austria and also collaborate extensively across the CEE region, supporting clients with operations in multiple countries. This way, we ensure consistent quality and strategic alignment with the parent company.

BBJ: What were your Hungarian business figures for 2024, and how does this compare globally? What are some of the more significant projects you have worked on locally?

ÁK: I can comment only on the global figures: in 2024, group sales exceeded EUR 960 million, with more than 6,800 construction projects realized worldwide. In Hungary, we supported several key automotive manufacturers with the development of new production sites as well as refurbishment projects. We also continued to expand our footprint in project management within the logistics sector, and strengthened our position in real estate consulting, working with clients across various asset classes.

BBJ: Beyond the obvious answer of the language, what are the most challenging aspects of working in Hungary?

ÁK: Actually, language is not an issue. We have local colleagues who often have work experience from Germany or Austria, which enables us to support German- or Englishspeaking clients very easily. What can be more demanding, however,

more efficient construction and building processes. From AI-driven data flow management to digital real estate consulting, we usually help clients navigate the overall complexity of modern buildings and infrastructure. But for us, digitalization is never about technology for its own sake. A smart building is not just the number of sensors or IoT devices. It’s about creating real value for its users, for example, through intelligent parking systems, smart building controls, booking solutions for workplaces, or electric vehicles.

BBJ: What do you see as the most significant trends in the real estate, infrastructure and industrial markets? Are all evident in Hungary?

ÁK: Across all sectors where we operate, we’re seeing a clear and consistent shift toward greater efficiency and added value. The pressure to reduce costs is growing, as well as the need to ensure that projects are future-proof. This means adaptable, sustainable, and digitally enabled. This is something we experience very clearly in Hungary as well, where the strong presence of international investors brings high expectations for quality and long-term viability.

is that the Hungarian market sometimes requires a very specific service portfolio for certain projects. However, here, we can draw on tried-and-tested solutions from similar international projects and tailor them to fit the local regulatory environment and expectations.

BBJ: On your website, Drees & Sommer is described as a pioneer in driving sustainability and digitalization. Can you give us some examples of how?

ÁK: Yes, sure. Sustainability and digitalization are not just buzzwords for us; they’re embedded in how we think, plan, and then also deliver projects. One of the most exciting developments in sustainability is our work in “urban mining.” This concept is changing the way we approach construction and demolition. Instead of tearing down buildings and discarding materials, we focus on recovering and reusing valuable resources from existing structures. It’s a simple idea with enormous potential. A great example is the ZIN project in Brussels, developed by our Belgian client Befimmo. It’s one of the most significant urban mining initiatives in Europe, covering more than 110,000 sqm. In this single project, over 1,000 tonnes of materials, including raised flooring, partitions, insulation, and roof tiles, were reused, and 140 tonnes were upcycled. It’s a great demonstration of how circular thinking can be applied at scale.

On the digitalization side, we’ve developed a range of our own tools and applications to support smarter,

“For us, digitalization is never about technology for its own sake. A smart building is not just the number of sensors or IoT devices. It’s about creating real value for its users, for example, through intelligent parking systems, smart building controls, booking solutions for workplaces, or electric vehicles.”

In the industrial sector, key roles are played by the growth of e-commerce, changes in supply chain strategies, and rapid technological advancements. We continue to see strong demand for logistics hubs and flexible industrial spaces. Trends such as nearshoring and reshoring, which bring production closer to consumer markets, are gaining momentum across Europe, and Hungary is no exception.

BBJ: What is next for Drees & Sommer locally? Are there any plans to move into new sectors?

ÁK: Our local focus remains on industry and real estate, where we have built strong expertise. At the same time, I see great potential in infrastructure projects, especially in the transport and energy sectors. These areas are becoming increasingly important in the context of urban development, climate goals, and the energy transition.

Making the Project Management Holy Trinity Work, From Budapest to Boston

From New York job sites to Budapest’s evolving skyline, Stephen Saracco’s professional journey has been anything but ordinary. A longtime figure in Hungary’s real estate and project management scene, Saracco helped shape some of the capital’s most ambitious construction projects before returning to the United States, where he now oversees major public works in Boston. In a wide-ranging conversation with the Budapest Business Journal, Saracco reflects on decades of building across continents, the lessons learned on construction sites, and why the balance between precision and people remains at the heart of great projectmanagement.

BBJ: What brought you to Budapest in the early ’90s?

SS: Pure curiosity. A photographer friend of mine and I traveled to “check in” on the political shift after the fall of communism. I had been writing freelance for newspapers and had a background in history. We thought we’d stay a few weeks, maybe publish some articles or a photo book. But like many of us, I stayed.

BBJ: And eventually transitioned back into construction?

BBJ: How would you describe Budapest’s real estate evolution?

SS: When we first arrived, there was no real office market. You could count the major office buildings on one hand. Yet, it was clearly a city of enormous potential. The Váci Corridor was a natural site for development: flat, underutilized, and aligned with transit. Now, of course, it’s one of the densest office zones in the region.

BBJ: Do you think Budapest has “arrived” as a real estate hub?

my family over high-risk career moves. But it’s a trade-off I’ve never regretted.

BBJ: Now you’re in Boston, managing public infrastructure. Tell us about that transition.

SS: It was a surprise. When I dropped my son off at MIT, I took a last-minute interview. CBRE had been restructuring and had phased out my role in Central Europe. Within three weeks, I had been offered a civic role with the City of Boston and decided to give it a shot. A year later, my wife and daughter joined me.

BBJ: And what’s your role exactly?

SS: I’m the assistant director of public facilities, though we call it capital projects. We handle about USD 2 billion of what we call vertical public construction: schools, libraries, police stations, firehouses. Currently, one of the projects I’m working on is delivering a PPP project for a new football stadium. It’s very challenging and rewarding to be part of building the city’s civic fabric.

BBJ: What role does sustainability play in all this?

SS: A huge one. Boston’s climate targets are among the most ambitious in the country. We’re required to build all-electric, eliminate carbon-based fuels, and pursue net-zero goals. Even emergency equipment replacements require waivers if they involve fossil fuels. It’s real, and it’s happening fast.

BBJ: On a lighter note, you recently appeared in The Brutalist. What’s the story there?

BBJ: Where did it begin for you professionally?

Stephen Saracco: I got started in construction pretty early, around 15 or 16, and by 18 or 19, I was already supervising a small crew doing residential renovations in New York and Connecticut. My boss saw I had a sense of responsibility, and before I knew it, I was helping coordinate teams of guys twice my age. I certainly wasn’t thinking in terms of “career” back then; it was more about making things work efficiently. That instinct stuck with me.

BBJ: And you used that to fund your studies?

SS: Exactly. Construction would pay my way through university. I started later than most, studying something completely different, mathematics and statistics, but when I graduated, I returned to construction while figuring out my next steps. It gave me time, money, and clarity.

SS: I was getting disillusioned with journalism. The stories were starting to repeat: “Capitalism replaces communism, here’s what happened.” That didn’t interest me long-term. Around that time, I connected with an American-run construction and project management firm in my building. They knew my background, language skills, and construction experience, and offered me a project. That turned out to be the CEU building on Október 6 utca. We had a crazy three-month summer deadline to get it ready for the academic year, but we pulled it off. It was my first formal return to construction in Budapest, and it led to a long run of increasingly complex projects.

BBJ: What kinds of projects stand out in your memory?

SS: Over time, I became known for taking on the more challenging builds. That became my niche: navigating complexity and delivering on time and budget. One major project was for ExxonMobil in Budapest: a 45,000 sqm office campus. It lasted nearly five years and spanned the COVID pandemic. When we finished, we were one day off our original schedule. That kind of precision still gives me satisfaction.

SS: Without a doubt. It has a highly educated population, robust infrastructure, a drive tosucceed, and, for many years, government programs to attract shared service centers and international firms. I was involved in several of those. Budapest remains a strategically smart place for business.

BBJ: What’s your approach to project management?

SS: I subscribe to Lord Kelvin’s principle: if you can’t measure it, you can’t manage it. You need to quantify everything — scope, cost, timeline — and to revisit that data constantly. Every project should move from concept to detailed plan, and from there to execution with clear oversight.

BBJ: So, the classic project management triangle: time, cost, quality?

SS: That’s the holy trinity. You can usually get two; the third takes skill and attention. It’s all about prioritization.

BBJ: And yet you’ve always seemed to find time for family, friends, and life outside of work.

SS: That’s partly why I stayed in Europe so long. The culture values quality of life. In the U.S., there’s pride in never taking a vacation. In Hungary, social life and family life are central. That really shaped me. I’ve made decisions that favored

SS: I had a small role, shared a scene with Adrien Brody. It’s the second time we’ve worked together, actually. I was cast from Budapest and flew back to shoot it. Funny coincidence: the film is about a Hungarian brutalist architect, and while filming it, I was working on Boston City Hall, probably the most iconic brutalist structure in the U.S. The architect who designed it was one of the inspirations for Brody’s character.

BBJ: That’s poetic.

SS: It gets better. A local news crew stopped me randomly walking across the plaza; City Hall had just been designated a landmark. They asked for my thoughts, and I said something like, “It’s like a typical Bostonian: bold, innovative, and impossible to ignore.” That line got picked up and went mildly viral. It was a fun moment.

BBJ: What advice would you give to someone entering construction or project management today?

SS: If it’s construction project management, spend time on-site. Don’t rely solely on certifications or classroom knowledge. Watch how things are built. Understand the order of operations. That real-world exposure is what teaches you how to manage timelines and costs realistically. Also, be collaborative. A single bad actor can derail a project. You need to be humble, but also the person who drives progress. At the end of the day, your job boils down to three things: keep the project moving, control costs and schedule, and be the central point of information. If people don’t know the answer, they’ll expect you to know where to find it.

Expanded Sanofi Budapest Hub Demonstrates the Pulse of Progress

To mark the official opening of the Sanofi Budapest Hub expansion on Oct. 9, Madeleine Roach, executive vice president and head of business operations at Sanofi, spoke to the Budapest Business Journal about the role the center plays in global operations, the ongoing transformation at the pharma firm, and what lies ahead.

BBJ: As executive vice president and head of business operations, you have a company-wide role. How often are you in Budapest? Madeleine Roach: Budapest is very close to my heart. It was our first European hub and a visible proof-point of a much bigger transformation we began two years ago. In 2023, we doubled down on science and set an ambitious goal: to become the first AI-powered, R&Ddriven biopharma. To deliver on that, we needed to reset how we work, endto-end, across the enterprise, not just in classic corporate functions.

That is why we created Business Operations: the catalyst for modernization at Sanofi. From day one, the scope went well beyond a traditional GBS. We brought together multidisciplinary capabilities (go-tomarket and commercial excellence, medical, manufacturing & supply support, as well as the full suite of corporate services) and we designed them around standards, data, and outcomes, not organizational charts. Our CEO and executive committee gave us a clear mandate and pace: a twoyear transition that many companies would plan over four or five. We built a common transition methodology, clear tollgates, and a metrics-driven way of working so “what good looks like” is transparent to everyone. Culture mattered as much as design. We adopted a “seeing is believing” approach, bringing leaders into our hubs to experience the talent, tooling, and impact firsthand. We kept the conversation anchored in value creation,

focusing on faster cycle times, a better user experience, and tangible profit and loss, as well as working capital benefits. Budapest was the European pioneer in this journey (we have since added Barcelona alongside Hyderabad, Bogota, and Kuala Lumpur), so I visit frequently with my leadership team. Transformation isn’t done from a distance; you have to be with the teams, listen, and help remove obstacles. When I was last here in April, we reaffirmed our ambition: deliver value and excellence at scale so Sanofi can chase the “miracles of science” for patients.

BBJ: You are here for. In terms of staff numbers, square meters and roles performed, how has the BSC grown?

MR: When we established the Budapest hub in 2019, we started with only a handful of talents. Today, we are around 1,700 professionals, and expect to continue growing. Our ambition is to increase the Budapest hub to 2,200 colleagues by 2026. This is not only an investment in Sanofi, but also in Hungary’s economic growth.

What makes this hub unique is its multidisciplinary nature. We are not only home to finance or HR; we cover a broad range of functions: Finance and accounting, people services, procurement, digital, R&D support, medical services, and manufacturing and supply. That gives our teams a much broader perspective on the value chain of a global biopharma company. The Budapest hub is also a community. In our 15,000 sqm at Váci Greens, we’ve created a modern workplace with stateof-the-art facilities, cultural and sports

site, with the sixth-largest footprint in Sanofi globally. In terms of size, it’s the biggest in Europe, and the secondlargest in Sanofi’s global hub network.

BBJ: Sanofi describes itself as an “R&D driven, AI-powered” biopharma company, committed to improving people’s lives and delivering compelling growth. It is interesting to see AI given such prominence. How does it, and the mission, manifest itself?

MR: We are reshaping how we discover, develop, and deliver medicines. On the R&D side, we are leveraging decades of scientific expertise, especially in immunology, and focusing our pipeline with precision medicine approaches. On the AI side, we aim to be the first biopharma company to be empowered by artificial intelligence at scale. Our AI strategy is based on the three pillars: Expert AI to accelerate discovery and development; Generative AI to streamline content and processes; and “Snackable AI,” simple tools in the hands of every employee, enabling better decisions every day.

programs, and spaces that encourage collaboration. This month, we are opening four additional office floors and a multifunctional community space. It’s all designed to inspire bold thinking and unite us behind our mission.

BBJ: The motto of the unit you head is “Business Operations delivers value and excellence at scale so Sanofi can chase the miracles of science to improve people’s lives.” How does the Budapest hub contribute to this?

MR: It plays a pivotal role in Sanofi’s transformation. By centralizing and reimagining operational work, we enable our R&D teams to focus on groundbreaking scientific innovation. For example, by streamlining processes, we shorten cycle times and simplify complexity, enabling R&D to bring new medicines to patients faster. By embedding digital tools, analytics, and increasingly AI into everyday operations, we create not only efficiencies but also new insights that help us work smarter. Ultimately, this hub shows how business operations create direct value for patients. It’s not back-office work; it’s a catalyst for how Sanofi delivers innovation to the world.

BBJ: Through Chinoin, founded in Hungary in 1910, Sanofi has a significant interest in the country. What is the size of your footprint here, and how does that compare to other international subsidiaries?

MR: Hungary is not only home to the Budapest Hub, but also to commercial operations and one manufacturing

This integration is already reducing time from discovery to commercialization. Combined with our world-class manufacturing, AI is helping us reimagine how fast and effectively we can bring innovation to patients. And we never forget our purpose: we chase the miracles of science to improve people’s lives. That means increasing healthcare access, reducing our environmental impact, and ensuring our growth benefits both patients and communities.

BBJ: What is next for the Budapest hub?

MR: We want to remain a trusted partner for Hungary, for our employees, patients, and communities. We believe that scientific breakthroughs alone cannot transform healthcare. It requires ecosystems: talent, partnerships, and trust. Hungary provides exactly that, and we are committed to building on it.

BBJ: You are a German citizen, you studied in London, you are based in Paris, and here you are today in Budapest. You are a prime example of a multinational employee wrapped up in one package. What are the advantages of being able to draw on all these strings?

MR: It’s true; I’ve been fortunate to live and work in many places and cultures, from London to Kuala Lumpur. Each experience shaped how I lead today. It taught me that diversity of background, culture, and perspective is a fundamental driver of innovation. That is why I feel at home in Budapest. Our hub here is a microcosm of global Sanofi: 65 nationalities working side by side. You can walk through the office and hear conversations in multiple languages, but all united around a common mission. That inspires me every time I visit. Ultimately, what I value most is not just being multinational; it’s being connected: to people, their ideas, and the purpose that unites us across borders.

Friends are Important at Work, but Money More So

GDP growth continues to shape the labor market in Hungary, but this is not the only factor. According to a survey released on Oct. 1, the jobs market in Q2 was affected by a shrinking active population and weaker consumption generated by a slowing economy.

HR

Matters

A monthly look at human resource issues in Hungary and the region

The Evolution of Employment Forecasts by Quarters

Percentage of employers planning to increase or decrease headcount

Source:

HR service provider WHC compiled data released by the Central Statistical Office (KSH), which shows that, in Q2 2025, the number of employed people aged 15-74 decreased by 49,000 compared with one year earlier. The employment rate of 74.9% is still among the highest in the EU, but it is stagnating, indicating that the labor market may have reached its demographic limits.

“The best age group for work, 25-54, is decreasing, which has a growing impact on the labor market. This shrinking pool means that companies need to prepare for increasing challenges in recruitment, and employee retention is gaining strategic importance. Companies must prepare for more intense competition for talent in the future,” WHC experts say, in response to their findings.

Meanwhile, demand has also slowed. Vacancies now stand at 68,700, indicating that reduced investment and industrial production are narrowing the need for additional workforce.

But employee expectations are also changing. The number of those working part-time has increased by 9.3% compared to a year earlier, and an increasing number are looking for side jobs alongside their primary employment.

Another survey, this time released by Manpower Hungary, sheds light on a different side of the labor market. The good news, according to the data, is that Hungarian employers expect improvements in the last quarter of 2025. One quarter of respondents plan to expand their headcount, while only 17% expect to reduce it.

The survey is part of a broader study conducted in 42 countries among more than 40,000 employers, 525 of whom were in Hungary. It is carried out every quarter and, in the latest survey from Q3, the gap between the “optimistic” and “pessimistic” groups is wider than previously measured, rising from 4% in Q2 to 8% now. But that is where the good news ends, as this does not necessarily reflect a general improvement in the economy.

“The forecasts for the last quarter indicate that the Hungarian labor market has left behind the worst

Generational Differences are not About Age

In a podium discussion held at the 10th edition of HR Fest in Budapest, generation researcher Krisztián Steigervald and WHC people and culture lead Lilla Sáfrány discussed the differences between generations on the labor market. While these differences really do exist, they are not linked to birth date, but rather to the different social context, technological environment

and shared social experiences. Employees from Gen X tend to quit jobs following procedures, but Gen Z simply would not come to work. Companies must adapt to this by open dialogues and mentoring. People join companies, but in most cases, they quit because of the team leader’s attitude, and that is because of the lack of dialogue, Sáfrány and Steigervald said.

period, and local companies are expecting further improvements in employment figures. But these improvements will only be stronger if the economy sets off on a clear growth path. The current improvement is due mainly to certain sectors of the economy,” explains Péter Varga, CEO of Manpower Hungary.

The highest growth in headcount is expected in the logistics and automotive industries (+39%) and finance and real estate (+36%). The energy and public utilities sector will probably register a significant decline in headcount (–52%). Other sectors are not anticipating changes, as indicated by 56% of respondents in Hungary.

The fragility of the macroeconomic data is also reflected in other figures. Intrum, which describes itself as “Europe’s undisputed market leading credit management company,” has been publishing Hungarian solvency index surveys for several years, measuring how much households are able to spend after paying utility bills and other essential expenses.

In Q2, solvency grew by 9% to 13.7 points. However, this figure remains far below the 40 points registered in 2019, and the chances of significant growth are very slim, according to the firm.

The global collapse in demand for automobiles is also affecting the German and Hungarian car and battery industries. This raises risks for employment and real wage growth. The economic forecasts for this year are not particularly bright: inflation is higher than expected, exports are sluggish, and investment is low (note: the Intrum report was released on July 31).

Judit Üveges, sales director at Intrum, commented: “The next few months will be decisive for the ability of economic policy to reduce the effects of external and internal economic factors on the Hungarian population, and to determine how well Hungarian families can adapt to changing costs and a reshaped income structure.”

But is income really the most important factor when searching for or keeping a job? The answer is not simple.

A survey conducted among 2,000 Hungarians aged 18-64 shows that the majority of employees are satisfied with their current jobs, while “competitive salary” and “bonuses” ranked only seventh and eighth on the list of the most critical workplace characteristics.

Respondents instead described the benefits of their workplace with these elements (in descending order) all placed ahead.

Friendly atmosphere

Acceptable distance from home

• Stability and security

• Work–life balance

• Allowance for transport costs

Flexible work schedule

Why do employees look for another job? An overwhelming majority, 70%, say they are dissatisfied with their current salary. Other responses included:

• Too much stress and burnout, 59%;

• Poor leadership, 44%; Lack of work–life balance, 34%; Lack of appreciation, 34%;

• Job insecurity, 33%;

• Uncomfortable working hours, 30%; Distance from home, 27%; No cafeteria, 27%;

• Lack of opportunities for progression, 17%;

• No home office, 12%.

Based on these answers, the Oeconomus Economic Research Foundation presented a list of recommendations for employers: Setting up mentoring programs in the workplace to train young employees;

• Providing allowances for physical exercise and training; Promote opportunities for part-time work;

• Increase the availability of part-time and remote work opportunities;

• Develop digital infrastructure and provide training on using digital devices.

Real Estate Development 3 Special Report

Market Demands Ever-higher Quality Assets From Developers

Regardless of sector, developers face challenges in the planning, development and construction processes. Potential difficulties include sourcing affordable finance, longterm demand, establishing efficient asset management, ESG issues at every turn of the project life-cycle and, not least, the provision of an exit strategy.

needs energy efficiency plus on-site generation and resilience; hotels must balance guest experience with carbon and water savings; and retail will increasingly prioritize mixed-use, lastmile logistics and ESG-friendly tenant mixes,” according to Zsombor Barta, founding partner of the sustainability consultants, Greenbors.

“Overall, ESG requirements are shifting the risk/return profile of real estate: projects that treat ESG as a capital-good investment outperform; those that don’t face regulatory, financing and obsolescence risk,” he warns.

Biggest Challenge

“The biggest challenge for developers is not whether to integrate ESG, but how to do it cost-effectively and credibly. Rising construction and retrofit costs, fragmented regulation across EU and national levels, and limited availability of green finance in some markets create friction,” Barta argues.

Currently, analysts see the most attractive development sectors as industrial, hotel, and residential, with the number of manufacturing and logistics tenants, hospitality guests, and potential homebuyers having risen significantly in recent years. In the office sector, more staff are working on-site again and, in the case of retail, it seems consumers still enjoy a physical shopping and leisure experience.

“The number one obstacle for developers is financing and yields, higher-for-longer debt costs and stricter bank underwriting. The response is to de-risk via higher pre-lease/BTS ratios, phased capex, and green/sustainabilitylinked lending that benefits from EU Taxonomy alignment,” comments Máté Szoboszlay, business development and investment director at Faedra Group.

“There are supporting factors that may generate continuous demand in the industrial sector,” reckons Zsófia

The Emerald Residence by Biggeorge is a good example of how developers are building ever more high-quality, imaginatively designed and ESGcompliant products to meet the complex demands of tenants, investors, lenders and EU taxonomy requirements. A 106-apartment residential building at Városház u. 20 in the heart of District V is part of a premium downtown mixed-use development complex with hotel and retail functions.

Korda, chief sales officer at Wing Industrial. “Currently, the main driver is from large-scale industrial investment. Considering that Hungary’s industrial policy is strongly one-sided, focusing predominantly on battery factories and the related value chains and supplier networks, any slowdown or acceleration in this sector has a direct impact on the local industry,” she says.

Built-to-suit is becoming the favored development model in the industrial sector, following a speculative development boom that has led to rising vacancy and increasingly complex and specialized requirements on the demand side.

BTS is also clearly the development option of choice in the office sector, with both rising vacancy and concerns from developers and lenders over demand, although on-site working is again becoming a market norm. Office staff and, in turn, tenants, have increasingly complex expectations regarding the office environment and location.

The priority for hotel developers is to secure a respected, reliable partner with a strong brand and sales force to take responsibility for the complex day-to-day management of a hotel asset, according to Attila Madler, country chief asset management officer at CPI Hungary. With regard to residential projects, many developers undertake phased developments, concluding a significant

proportion of sales contracts as early as possible in the development process.

Banks remain reluctant to finance office developments due to the expected rise in vacancy. This can be mitigated by achieving a high pre-lease ratio. Both investors and banks are generally supportive of hotel projects.

Market Shift

“We are seeing positive momentum on the ground; our projects are moving forward with strong tenant interest, which really shows how the market is shifting towards quality, sustainable workplaces,” says Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska.

“Maybe one of the biggest challenges is navigating the constantly changing sustainability rules and ESG reporting requirements. It’s not just about setting bold targets; it’s about turning those goals into clear, data-backed results you can trust,” she adds.

ESG compliance is becoming standard practice in CEE development, in particular in the office, industrial and logistics sectors. It is less so in retail and hospitality, where cost, tenant mix and use patterns are more complex properties, but even here, sustainability is becoming more important.

“For each sector, the focus is slightly different: offices require deep retrofits and smart building upgrades; industrial

“In Hungary and Central Europe, developers also face gaps in reliable ESG data, a shortage of local expertise in sustainable design and operation, and sometimes a disconnect between short-term leasing horizons and longterm ESG payback,” he says.

“These can be overcome with three levers: early integration of ESG into project design, alignment with EU taxonomy and energy performance standards to access green capital, and greater collaboration with tenants and operators through green leases and shared performance targets.

The developers who succeed are those who treat ESG as an investment in resilience and value, not as a compliance cost,” Barta adds.

Regarding an exit strategy, big-ticket transactions have been concluded by domestic investors. However, there are signs that international money is returning to Hungary, with valueadded redevelopment projects being concluded by foreign capital.

Appetite for logistics remains strong, but more noticeable is the growing interest in hospitality (standing or conversions) and residential (purposebuilt student accommodation and microliving). Thus, hospitality and residential asset classes account for an increasing share of investment activity, says Benjamin Perez-Ellischewitz, principal at Avison Young Hungary.

From a positive perspective, the fundamental changes in the development and investment markets require the development of ever more high-quality, imaginatively designed and ESGcompliant products to meet the complex demands of tenants, investors, lenders and EU taxonomy requirements.

Market Talk: Real Estate Development not Without its Challenges, but Opportunities Exist

Real estate development faces challenges of site acquisition in strategic locations, the availability of debt finance, concerns over longterm demand and the need to plan, finance, construct and manage property in line with ESG requirements. Despite this, opportunities persist for well-located, quality ESG-compliant projects and assets. Gary Morrell, real estate editor at the Budapest Business Journal, spoke to leading market players about prospects for the development process in Hungary.

Hybrid working models are now firmly embedded, leading occupiers to prioritize quality, sustainability, and efficiency over sheer size. We are experiencing a slight expansion of existing occupiers and several new entrants to the market. Developers have become selective, typically only launching projects with a pre-lease secured. However, in the mid- to long-term, moderating interest rates and improved financing conditions should support new investments. We expect a market defined by selective, smart, sustainability-focused speculative developments, ongoing tenant upgrades from older stock, and the repurposing of obsolete offices.

Across all real estate segments, developers face the burden of still-elevated financing, labor and construction costs, even if they are gradually easing.

Sustainability and ESG compliance requirements add further pressure, as meeting international standards often entails additional upfront costs. In cases when the developers’ business model is to develop, lease, and exit, then the liquidity of the current market condition is a notable factor.

KATA MAZSAROFF

Managing

director

Colliers Hungary

At present, the most attractive opportunities lie in countryside retail parks, industrial/logistics facilities, and office-to-residential or office-to-hotel redevelopments in Budapest. These opportunities are highly location-sensitive: feasibility depends on the strength and suitability of each location. Under current

In Central Europe, and Hungary specifically, national implementation and incentives matter. There are funding programs and national transpositions that change the economics of renovation and new-builds, but market demand and lender/investor requirements are the real accelerant. Assets that demonstrably reduce energy use attract lower financing costs and stronger occupational demand.

ZSOMBOR BARTA Founding partner Greenbors Consulting

market conditions, smaller developers with deep local knowledge and strong site selection capabilities are best positioned to capitalize on these opportunities.

In the office and logistics sectors, tenants increasingly expect at least some level of ESG compliance, typically in the form of a recognized green certification. However, they are less focused on actual KPIs.

In the retail and hotel segments, tenant demand for ESG compatibility remains minimal. On the financing side, banks often require a green certification as a precondition for development financing, but this tends to be a “tickbox” exercise rather than a decisive factor influencing financing terms.

ATTILA MADLER

Country chief asset management officer

CPI Hungary

In my view, ESG is no longer optional for development and redevelopment; it’s a structural part of project feasibility and value creation across office, industrial, hotel and retail. EU regulations (notably the revised Energy Performance of Buildings Directive, the EU taxonomy and the CSRD reporting regime) are raising minimum technical and disclosure standards, while capital markets and occupiers are pushing for measurable outcomes: lower operational carbon, climate resilience and tenant/guest well-being. Practically, this means developers must design for higher energy performance and retrofitability, align capex and opex forecasts with net-zero pathways, and be prepared to demonstrate category-level alignment (energy, emissions, resilience) to secure financing and attract best-in-class tenants.

The first major obstacle for developers is financing and yields. Higher-for-longer debt costs and stricter bank underwriting have resulted in de-risking via higher prelease/BTS ratios, phased capex, and green/ sustainability-linked lending, which benefit from EU taxonomy alignment. Obstacle number two is letting risk in a slow economy with elevated office and some logistics vacancies. The response is to target prime micro-locations, flexible unit sizing, and spec-to-core value-add (retrofits) rather than purely speculative builds. This year marks the first cycle of mandatory ESG/CSRD disclosures for many firms in Hungary, and lenders are increasingly tying pricing to EU taxonomy alignment. On the technical side, the recast EPBD raises the bar for energy performance and renovation pathways. Green design and credible data are now prerequisites for capital and tenant demand, not “nice-to-haves.”

The attitude to commercial real estate logistics schemes is cautiously optimistic, but hospitality offers the clearest nearterm opportunities; office is a selective, upgrade-driven story; retail is steady via convenience/community formats.

MÁTÉ SZOBOSZLAY

Business development

and investment director

Faedra Group

All of HelloPark’s buildings are EU taxonomy compliant, a unique feature in the domestic market. We now compete with the largest companies in the sector. We employ solutions that enhance our tenants’ operations, making them more efficient and reducing their environmental impact. The company’s research and

development and sustainability team has introduced numerous innovative solutions in the construction of new buildings. These include plastic fiber industrial flooring, reduced-carbon-footprint concrete structures, and the use of reinforcing steel from 100% recycled sources.

Over the past five years, HelloParks has established a development model that simultaneously serves tenants’ efficiency needs and sustainability expectations.

HelloParks also leads in meeting the requirements for climate neutrality, having developed a detailed climate neutrality roadmap up to 2035. These buildings have already exceeded regional standards, achieving values typical of Western European developments. This year, the company has switched to 100% green energy use across its entire warehouse portfolio.

RUDOLF NEMES

CEO HelloParks

Generally, development financing of commercial property in the whole CEE region has become more difficult. This is because of legislative changes for banks, declaring that developments are riskier than they were before (due to cost overruns, interest rates, construction material or availability of general contractors in recent years). Consequently, developments require one-and-a-half times more regulatory capital than financing existing cashflow producing buildings. This creates a»supply-side constraint on development loans, as regulatory capital is a scarce resource. In Hungary, providing development loans for residential projects might be an exception, due to the lack of modern housing and social programs that support their provision.

Obstacles to development include a lack of transactions, which creates uncertainties about market exit, strong government intervention, the economic situation and sluggish economic growth.

PÉTER SZÁMELY

Head of real estate finance CEE

Hypo Noe Landesbank

Concerning the division between speculative and BTS development, at Innovinia, we have always maintained a healthy balance. We have launched

a new 31,000 sqm BTS project in Nyíregyháza and successfully delivered a total of 42,000 sqm of speculative space in Debrecen and Kecskemét, both of which were fully leased before completion.

Long-term developers typically aim to create flexible buildings that can be adapted for alternative uses, should tenant needs change. At the same time, industrial operations must also be considered, as they often require specific structural features, such as the installation of overhead cranes. Due to recent regulatory changes, converting land into development sites has become more difficult. This has created clear challenges for developers, while simultaneously allowing landowners to drive up the prices of suitable plots.

BALÁZS CZIFRA

Director of sales and asset management Innovinia

selective new starts in prime, transitserved submarkets. The shift we see is not about volume but about purpose. The next wave of office development will be driven by demand for spaces that combine efficiency, sustainability, and human experience, buildings that genuinely support productivity and wellbeing. Redevelopment will also play a growing role as owners upgrade existing stock to meet modern expectations. With solid tenant interest and a proven development pipeline, we see strong potential for Budapest’s office market to continue evolving through quality-led, people-centered projects that

create long-term value for the city. That opens up real opportunities for developers who can deliver lasting, measurable value. While modernizing existing buildings is still key, there’s definitely room for forward-thinking new developments that boost Budapest’s business scene and urban vibe.

Adaptive Reuse of Existing Office Building Stock: Legal Pitfalls

Hungary’s new Architecture Act reframes how projects are conceived, designed, approved, and protected. It elevates sustainability and heritage protection to organizing principles and streamlines procedures through a modernized code.

entire life cycle. Envelope upgrades, MEP (mechanical, electrical and plumbing) replacement, embodiedcarbon-minded structural reuse, and stormwater considerations all require a building permit procedure. These costs must be built into the baseline. Change-of-use often intersects with conservation. The act updates heritage procedures and clarifies when protection can be initiated or expanded. Budget time for heritage opinions; it is also essential to verify whether the Hungarian State has pre-emption rights based on architectural or World Heritage status.

It is vital to establish your precise permitting strategy and timing. Determine whether your path requires a standard building permit, a staged approach, or special procedures related to heritage or infrastructure.

The lack of foreign interest makes domestic investment decisions rather tricky, and local developers often need to take a leap of faith, hoping for improved market conditions. Debt financing is primarily available for de-risked projects only, and amortization rates are significantly higher than in peer CEE countries. Green loans provide an incentive to self-adopt stricter ESG standards, but they’re still in an infant state. For now, compliance with existing stakeholder policies is more important than long-term adaptation. We put our money where our mouth is; over the last 18 months, we have been quite active and have a strong pipeline of opportunities that we are scrutinizing. We see prospects for development and redevelopment in office (very selectively), but we do observe attractive entry opportunities, as the pendulum seems to have swung back from mostly remote to more on-site work policies. Partly for this reason, we have just acquired a major office asset in Budapest, Science Park, where we see upside and value-add potential on several fronts.

GÁBOR KUTAS Founder & CEO Recorde Asset Management

An upturn in office development depends on conditions, not a date. As financing costs stabilize and more occupiers consolidate into efficient, sustainable workplaces with lower operating costs and strong digital connectivity, we expect

Aurelia Luca Executive vice president of operations for Hungary and Romania Skanska Commercial Development Europe

At Wing, we expect demand for BTS industrial developments to remain stable, driven by factors such as the ongoing nearshoring trend, tenant demand for customization, and the shift in developers’ strategies towards mitigating risk. At this stage, BTS projects may carry lower risk and offer better returns, particularly when developers can secure commitments from quality tenants under long-term lease agreements. A recent example is East Gate PRO Business Park in Fót, where Wing Industrial, the industrial and logistics development sub-brand of Wing, delivered a fourth hall of 9,000 sqm. The facility, rated BREEAM “Very Good,” was fully tailored to the needs of its tenant, Packeta’s Hungarian subsidiary, under a BTS pre-lease arrangement.

Looking ahead, I expect that high-tech and energy-intensive manufacturing (such as battery production, electronics, and pharmaceuticals) will remain key drivers of demand, along with logistics. The market will remain stable; however, I do not foresee the same level of explosive growth we saw between 2020 and 2022.

ZSÓFIA KORDA Chief sales officer general deputy, Wing Industrial

The legislation introduces restrictions on the designation of new areas as building plots. Meanwhile, the office building market, especially for older building stock, suffers from low demand, high capex requirements, and high vacancy rates. For developers in Budapest, the adaptive reuse of existing office building stock may be a pragmatic path forward.

The office sector is soft, prompting owners and contractors to seek value in changing the use of office space to residential or hotel, or to pivot to a flexible, tenant-led reconfiguration. This approach enhances the transaction market, although special attention should be given to architectural, technical, financial, and legal due diligence before any acquisition takes place. The new framework promotes environmental awareness regarding materials, energy, and landscape. It also enhances local and heritage controls, ensuring that legal diligence should ideally commence before acquisition and, at the very least, before the concept design stage. So, how can a developer move from idea to green light?

Concept and zoning feasibility are among the most critical questions. Early viability hinges on local building rules (HÉSz) and any district-level plans. Municipalities have a sharpened role in protecting local architectural values, and heritage triggers can arise early. Engage the chief architect at the concept stage to de-risk show-stoppers.

In Support of Sustainability

The design must support sustainability. The act promotes climate-resilient, energy-aware choices and the careful management of urban greenery and materials throughout their

Conversions often carry hidden challenges in old structures. Arrange fire, structure, utilities, and hazardous materials survey. Designers should map requirements that are specific to hotels or residential properties, and which may be stricter than those for legacy offices.

A “standard” office acquisition due diligence is not enough for a conversion project. Structure the deal: split signing and closing, define a longstop date, and price/cost allocation rules in the case a pre-emption right is exercised. Consider alternative buyer protections (such as a break fee or cost reimbursement) if the transaction fails for this reason. Secure early written confirmations from utilities and traffic authorities. Where municipalities signal lower tolerance for additional density, emphasize qualityof-place upgrades and sustainability outcomes to build support.

The most sustainable option for the construction industry is to renovate existing structures rather than build new ones, and the Architecture Act provides a legal framework that is more coherent, sustainable, and locally grounded. Those who frontload concept feasibility will move fastest when opportunities surface.

LeitnerLaw has a wealth of experience in offering legal counsel on changeof-use projects. We are currently working on several conversions (officeto-apartment, office-to-hotel and office refurbishment), with a combined value of several million euros.

Restrained Speculative Office Development Continues

Speculative development in the Budapest office market remains low as developers exercise caution in their strategies due to the uncertain geopolitical environment and concerns over long-term demand and vacancy rates.

This limited speculative office pipeline is predicted to result in a restricted supply of quality, well-located, contiguous offices that conform to sustainability expectations and regulations and satisfy tenant demands, despite rising overall vacancy rates.

New developments will need to be designed and maintained in compliance with increasingly comprehensive ESG regulatory requirements, as well as tenant and staff demands to attract tenants successfully.

“The office market is currently tenantdriven. Vacancy is expected to rise further as state institutions are leaving rented premises and moving into their own developments,” comments Attila Madler, country chief asset management officer at CPI Hungary.

“As a result, there is currently limited room for speculative developments, and new projects typically only start with a high level of prelease of around 80%.

Redevelopment opportunities are gaining in importance, with office buildings often being converted into residential or hotel use, provided the location is suitable,” he notes.

Budapest office stock has remained flat, with 88% of the space currently under construction being built-to-suit. CBRE has traced 530,000 sqm of office space under construction; however, these figures are distorted by the number of public sector bodies that have preleases at BudaPart and Dürer Park, by Property Market, and Zugló City Center by Bayer Property.

CBRE estimates a current pipeline of 165,000 sqm for 2025, 270,000 sqm for 2026 and 92,000 sqm for 2027; in all cases, there is a significant prelease ratio of more than 60%.

Total Budapest office stock stands at around 4.42 million sqm according to the Budapest Research Forum (BRF, which comprises CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners, and Robertson Hungary). Around 3.6 million sqm of this was developed on a speculative basis. Budapest remains the secondlargest CEE office market after Warsaw.

Vacancy Rising

CBRE sees vacancy rising to 15% by the year-end and further pressure on overall

vacancy rates, as public sector authorities vacate around 225,000 sqm of older stock.

Exceptions to the rule regarding speculative Budapest office development include Skanska, which is constructing the 22,000 sqm second phase of the 72,000 sqm H2Offices complex in the Váci Office Corridor, scheduled for completion in the first quarter of 2027.

Skanska has secured a prelease for the whole complex to a single tenant.

“As part of its market-making approach, H2Offices is the first project in Hungary where Skanska has required Environmental Product Declarations (EPDs) from suppliers for major construction materials,” says Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska’s commercial development business unit.

“While major works are in progress, the project has also achieved a record lease agreement, the largest speculative lease of the decade on Hungary’s office market,” she adds. The complex is planned to be certified LEED “Platinum,” WELL “Platinum,” and Acess4you “Gold.” WiredScore and Smart Score Certifications have also been applied for.

Another major speculative development, the 35,000 sqm Centerpoint III by GTC on Váci út, will bring total space at the complex to 78,000 sqm of LEED and WELL “Gold” certified space.

Also on Váci út, another established Budapest office developer, Codic, is redeveloping the Art Deco Modiano building, located on a prime site, into

a 13,500 sqm office complex. Codic is aiming for BREEAM “Excellent” and Energy “AA++” accreditations.

Any new speculative development must align with ESG requirements and meet the market’s demands for quality; existing older stock will require upgrades and redevelopment to reach these standards. In general, successful developments will be more ESG-compliant, better designed from an exterior and interior perspective, and more conducive to a favorable work environment.

Stakeholders typically need to consider three major issues: location, price and ESG issues, and also how a project impacts the broader population. With regard to location, a successful office must provide public transport connections, car access and electric battery charging facilities.

Sustainability Essential

Sustainability accreditation has become an essential factor: most of the deals that Newmark VLK works on involve an office building that is sustainability accredited, says Valter Kalaus, managing partner of Newmark VLK Hungary.

When it comes to existing stock, landlords face the choice of repositioning or repurposing, as owners need to look at the feasibility of an office building in a good location, he adds.

The Academia Office Building, refurbished by Europa and ConvergenCE, has reached nearly 100% occupancy. The building overlooking the Danube combines heritage character with modern infrastructure, and has been awarded the BREEAM “Excellent” certification.

Moreover, the older traditional wing of the complex has recently obtained the WELL “Gold” certification.

“Academia is a true trophy asset. Its value is supported by a rare combination of excellent leaseability, premium location, and a forward-looking, sustainable operating model,” says Csaba Zeley, managing director at ConvergenCE. There is potential for further rental growth in

2025,

particularly for schemes with strong ESG credentials in South and Central Buda and the Váci Corridor, in the view of Cushman & Wakefield.

Skanska’s Luca believes that selective new developments will do well in prime, well-connected areas where transit options are strong.

“There’s definitely a clear ‘flight to quality’ happening; businesses want efficient workplaces that deliver transparent ESG performance. At the same time, redevelopment and deep retrofits are gaining traction as owners look to improve energy performance and user experience to keep their assets valuable for the long haul,” she says.

Gábor Kutas, founder and CEO of Recorde Asset Management, argues: “There will not be an upturn in office development before 2028-29. Statesponsored developments will result in more second-hand vacancies, and it will take some time for the market to absorb the surplus. However, this also creates a window of opportunity for those developers who can ride the wave with well-positioned projects,” he concludes.

Built by Skanska: Sustainable, High-quality, and Future-focused

Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska Commercial Development Europe, talks to the Budapest Business Journal about the firm’s history in Hungary, how it leads on pushing sustainability, its present and future projects, and how its Swedish roots still influence all it does today.

BBJ: How long has Skanska been active in Hungary, and what is the scale of your business here? How does this compare with other national subsidiaries?

Aurelia Luca: Skanska has been proudly active in Hungary for more than 38 years. During this time, we have developed more than 250,000 sqm of commercial space, and our commitment here continues to grow. Hungary is a strategic market for us within Skanska’s Central and Eastern Europe region, characterized by steady growth and exciting opportunities. Our diverse portfolio spans multiple development phases and reflects the dynamic demand for sustainable, high-quality, and futurefocused projects that meet the evolving needs of our clients and communities.

BBJ: What current projects is Skanska Hungary working on, and at what stage are they?

AL: Our flagship project in Hungary today is the second phase of H2Offices, located in the heart of the Váci Corridor. It is part of a three-building complex that will deliver about 67,000 sqm of modern office space and 5,000 sqm of public placemaking once it’s complete. We broke ground in Q4 2024, and since then, we’ve finished the slurry wall, moved about 37,000 cubic meters of soil, and raised the concrete frame to level two. The parking decks are structurally complete, and our teams are busy installing MEP [mechanical, electrical and plumbing] systems. When the second building opens, it will sit beside a 3,600 sqm public park with water features and native planting, a welcoming green space for people to enjoy.

Looking ahead, we’ll begin the unitized façade work in early 2026, top out in Q2 2026, and aim to hand over

the building in Q1 2027. What makes H2Offices phase II truly special is that it’s set to be Hungary’s first speculative office development operating at full net-zero carbon. Additionally, it’s already pre-certified for SmartScore and WiredScore, and we’re working toward LEED “Platinum,” WELL “Platinum,” and Access4You “Gold” certifications. We couldn’t be more excited about how this building will elevate the standards for sustainable offices here in Budapest.

BBJ: Skanska’s presence in Hungary dates back to 1987 and the foundation of Kelet-Nyugat Ingatlanfejlesztő Rt. The East-West Business Center, the first iconic office building in Budapest, was delivered in 1991. How has the market here changed since then?

AL: We’ve seen Budapest’s office market evolve since 1991; delivering

BBJ: To date, all of your projects have been in the capital. Is there any intention to move beyond it?

AL: Right now, our focus remains on Budapest; it’s got the infrastructure, the talent and the energy we need. There’s still plenty of opportunity here, and we’re excited to keep shaping modern, sustainable workplaces that reflect how the city itself is evolving.

BBJ: What future plans does Skanska have for Hungary?

AL: Our priority right now is delivering H2Offices phase II to the highest standards, while we prepare the third and final building on the campus. We see each phase as progress, not just in technical performance, but in shaping what the next generation of workplaces should feel and function like.

We’re pushing for more efficiency and lower embodied carbon, and we’re strengthening digital capabilities through data-driven design and materials backed by verified certifications like Environmental Product Declarations. That discipline keeps us market makers and lets us raise the industry standard for sustainability and performance.

At the same time, we are progressing with the design of Hold, a genuinely boutique project in the heart of the city. Here, historic character blends with contemporary thinking to create a warm, flexible workplace that feels distinctly local but is built for what is next. This is a project we believe will become one of Skanska’s signature spots in the city center.

BBJ: Skanska Hungary is the only ISO 14001-certified property developer on the market. Why is this important?

the East West Business Center raised the bar for modern workplaces. Back then, the focus was on location and size; today, priorities include energy efficiency, daylight, air quality and digital readiness alongside rent. Regulations like the EU taxonomy now require measurable sustainability, not just intent. At Skanska, this is nothing new: we choose low-carbon, certified materials, integrate renewables and design to standards such as LEED, WELL and Access4You. It’s inspiring to watch the market mature as we move from merely delivering space to creating healthy, efficient and inclusive workplaces that help people and businesses thrive. We remain committed to leading this transition with practical solutions and transparent reporting now.

AL: ISO 14001 is the international standard that shows a company has a structured, audited system to manage and improve its environmental performance. At Skanska, it guides everything from design and construction to operations. We push further by using materials with Environmental Product Declarations, so decisions are based on verified life cycle and carbon data. For clients, ISO 14001 means a partner that delivers on sustainability, reduces operational risk and supports transparent, EU-aligned reporting.

BBJ: Skanska was founded in Malmö in 1887. What difference do those Swedish roots make to the way the company does business?

AL: They really shape who we are today. At our core, we bring a strong focus on sustainability, quality, and doing the right thing, values that have been part of our culture for well over a century. It’s about building long-term relationships, being transparent, and always looking for innovative ways to create value, not just for our clients, but for the communities we work in. So, while we’re a global company now, that Swedish mindset keeps us grounded and guides everything we do.

Industrial Players Look to BTS Development Option

The industrial and logistics market in Hungary, as with the wider Central and Eastern European region, is attracting both specialist regional industrial park developers and operators and national firms and investors. These are active in a market that is growing due to increasing logistics demand, as well as the need to meet significant FDI, notably in the electric vehicle and EV-related industries.

phase: national stock is 5.8 million sqm; vacancy has risen to 13.4% in Greater Budapest, and 10.8% on the regional level. As a strengthening wave, second-hand space hit the market, generating an alternative supply. Leasing is active as development continues, but these are more pre-let/BTS-led and location/quality-driven,” argues Máté Szoboszlay, business development and investment director at the Faedra Group.

“Developers and landlords increasingly need to develop in accordance with tenant-specific solutions, although this provides less flexibility from the perspective of landlords and developers with regard to future lettings,” comments Valter Kalaus, managing partner of Newmark VLK Hungary, on development strategies. Automakers or component suppliers are very exacting in what they want, he says, by way of example.

“The market will remain stable; however, I do not foresee the same level of explosive growth we saw between 2020 and 2022.

The latter has finally resulted in the development of I&L hubs outside of the capital, as has long been the development model elsewhere in CEE.

Firms are developing in line with increasingly complex tenant demands for highly specified, sustainable and ESG-compliant industrial and logistics space in addition to the need to comply with the EU taxonomy. Reflecting this and rising vacancy rates, there is a distinct trend towards development on a built-to-suit model.

“Extensive speculative developments have resulted in visible vacancy around Budapest; however, there is still substantial demand for BTS and BTO [built-to-order] projects in the countryside. Nearshoring is on everyone’s radar, and though few actual developments have materialized so far, there are several interesting RFPs out in the market,” comments Gábor Kutas, founder and CEO of Recorde Asset Management.

There are 5.7 million sqm of modern logistics and industrial space in Hungary, according to the Budapest Research Forum, with 3.8 million sqm in the Greater Budapest area and 1.9 million sqm in provincial centers.

“Industrial fundamentals remain stable, but we are in an adaptation

Redevelopment of older industrial stock will become more attractive, both for location and cost reasons (a lack of good land, which can also be expensive in some areas), and due to regulations, according to Zsófia Korda, chief sales officer at Wing Industrial. There is clearly an objective to shorten supply chains by relocating production closer to Europe, she says.

Ádám Székely, co-owner of the Hungarian industrial developer Innovinia, says provincial locations are growing in importance across Hungary, with more active industrial and logistics development in regional cities. The company is continuing its expansion, primarily focusing on BTS facilities for manufacturers and third-party logistics.

“In regional markets, we continue to see light industrial requirements dominating demand,” agrees Balázs Czifra, director of sales and asset management at Innovinia. “When new manufacturing or assembly operations commence, such as BMW or the renewed Mercedes plants, we observe a sharp increase in demand from related suppliers and third-party logistics providers,” he adds.

BTS Preferred

The BTS development option has become the preferred option as manufacturing and distribution hubs have taken on greater significance, backed by more sophisticated tenant requirements.

A shift towards the BTS development model is seen as providing developers with more opportunities to build according to tenant demands and specifications, starting from consultations in the initial design phase and continuing throughout construction.

“The balance between speculative and BTS development depends largely on customer risk appetite and financing conditions. Right now, we see a trend toward more BTS projects as customers prioritize customized solutions,” says Zsuzsanna Hunyadi, director of leasing and customer relations at Prologis Hungary.

“However, prime locations still warrant selective speculative development. In Budapest and key regional hubs, we maintain a hybrid approach: speculative developments for locations with proven demand, while BTS is the preferred route for more specialized industrial clients,” she explains.

“The strategy allows us to stay flexible while ensuring optimal occupancy rates. What we foresee is that speculative development in the Greater Budapest area will remain moderate in 2025, while BTS projects, especially for production, will gain momentum in key regional locations,” Hunyadi says.

High-tech Drivers

Wing’s Korda believes that high-tech and energy-intensive manufacturing, such as battery production, electronics, and pharmaceuticals, will remain key drivers of demand, along with logistics.

In both Southern and Northern Europe, we are seeing rising interest in data centers, and green energy projects, such as the integration of solar parks with industrial parks, are capturing an increasingly significant share,” she comments.

Sustainability accreditation is becoming the norm in the upper strata of the industrial sector, with players developing more highly specified and high-level BREEAM- and LEED-accredited complexes. A high level of green building certification has become a requirement for industrial assets in response to demand. Further, one of the key sustainability requirements is now the need for ESG data for reporting purposes.

ESG considerations play an increasingly tangible role in project design. While developers are committed to aligning with the latest sustainability requirements, long payback periods necessitate rational and selective implementation, according to Czifra. The relevance of certain ESG features also depends on the building’s use; for instance, photovoltaic systems may be less viable for logistics operations with relatively low electricity consumption. Beyond providing high-quality, contemporary buildings, it is now essential to ensure the availability of adequate utilities, particularly electricity and water. Developers must also maintain firm control over local town-planning and regulatory processes. This is especially critical for the automotive industry, primarily for EV manufacturers and their suppliers. Due to recent regulatory changes, converting land into development sites has become more difficult. This has created clear challenges for developers, while simultaneously allowing landowners to drive up the prices of suitable plots, Czifra concludes.

Tenant Stability and New Developments in the Hungarian Retail Market

Despite economic uncertainties, specific segments of the Hungarian real estate investment market continue to perform strongly. CPI Hungary, a leading player in the domestic retail sector, increased rental income from tenants in its openair shopping centers, including its Stop Shop brand, during the first half of 2025. The firm says this is particularly noteworthy given ongoing inflationary pressures and the gradual recovery in consumer spending.

from the Central Statistical Office (KSH), the decline in the number of housing completions continued, and the figures for building permits only partially offset this trend. In»contrast, players in the logistics, office, hotel, and retail park sectors remain cautiously optimistic.

In H1 2025, both the Hungarian economy as a whole and the real estate investment market showed signs of slowing. According to data

CPI’s portfolio includes Pólus, Campona, Europeum, 14 Hungarian Stop Shops, and two CityMarkets, which together welcome around 65 million visitors annually. In the first half of 2025, CPI’s retail parks achieved nearly 100% occupancy, with almost no vacant units across their 16 properties.

“At the moment, we have three units awaiting new tenants, but agreements have already been finalized so that they won’t stay empty for long. Whenever a tenant change was necessary, we always found one that fitted even better into the tenant mix than the previous one,” says Balázs Sipos, senior retail asset manager at CPI. “Despite inflation, we did not lose tenants in our open-air shopping centers. Thanks to our reliable, highquality service offering and attractive business terms, we can retain our tenants for many years, sometimes decades. As a result, our international

tenant base is built on the stores that helped establish the reputation of the Stop Shop brand,” he adds.

Continuous Innovation

The Hungarian Stop Shop network alone features nearly 70 brands. Key features of these “street mall” concepts include easy accessibility by car, public transport, bicycle, or on foot; clear, barrier-free layouts; short shopping times; responsiveness to local consumer habits; and continuous innovation.

The strip malls are typically U- or L-shaped; visitors arriving by car can park for free, and several electric vehicle chargers have been installed. The shop entrances connect directly to the parking areas, eliminating the need for escalators. The stores are open every day, offering a product range comparable to that of shopping centers.

CPI’s retail parks maintain their high standards through continuous upgrades, including pipeline replacements, roof and terrace renovations, and innovative solutions like a paperless parking system that simplifies entry and exit through automatic license plate recognition.

In addition to these improvements, the ongoing maintenance of existing units ensures tenant satisfaction and an enhanced visitor experience.

A new Stop Shop will soon open in Salgótarján, featuring 12 retail units, 361 parking spaces, and a playground. The opening is expected in the first quarter of 2027. This new addition will further strengthen CPI’s presence in the Central and Eastern European region and expand quality shopping opportunities for the local community.

CPI says its example clearly demonstrates that tenant stability, convenience services, and continuous development are the cornerstones of long-term success in the Hungarian retail market. Even in a fluctuating economic environment, well-managed retail parks with strong occupancy rates and innovative services continue to deliver revenue growth and reinforce investor confidence.

Retail Development Dominated by Retail Parks, Refurbishments

Retail development is constrained across the region, given concerns over the economic environment, spending power and the increasing use of e-commerce. Center owners are focused on redeveloping and upgrading the shopping, leisure and service offer to meet ever more sophisticated demands from consumers.

Perceived consumer and therefore tenant demands include an improved F&B offering, a more varied tenant mix, and more imaginatively designed retail offers that provide an enhanced shopping or leisure experience in addition to ESG-related requirements.

Retail demand has been under pressure due to the impact of e-commerce and high inflation, affecting potential spending power. Rising operational costs present continuing problems for retailers, as center owners have been passing on increased energy prices to tenants. However, the development and acquisition of provincial retail parks and retail warehouses is an increasingly popular option with developers and investors, a trend that is evident throughout Hungary and the CEE region.

“Consumer indicators improved modestly in early 2025; new supply is limited, and the focus is primarily on regional formats and strip malls. Due to the current legislation, supply shortages are expected to continue,” comments Máté Szoboszlay, business development and investment director at Faedra Group.

Total modern retail stock in Hungary stands at 3.1 million sqm, according to Cushman & Wakefield. Development is slow, with 55,000plannedsqm

for completion in 2025, including the Zenit Corso shopping center project in the Zugló area of Budapest, and 12 retail parks.

Strip malls in the Hungarian countryside are one example of retail development that is proving attractive. In September 2025, CPI Hungary announced plans to expand its Stop Shop chain with a modern complex in the heart of Salgótarján, Nógrád County (110 km northeast of Budapest), next to Lidl. In the first phase, 12 retail units, 361 parking spaces, 82 bicycle storage spaces and a playground will be developed, with the opening expected in Q1 2027.

Colliers has traced 23 shopping centers in Budapest, representing 780,000 sqm of space. The “latest” entries were the then all-new 55,000 sqm Etele Plaza by Futureal in September 2021, and the rebuilding and rebranding of the 25,000 sqm GoBuda Mall by Wing in March 2022. The consultancy has traced 57 shopping centers across Hungary in addition to 57 retail parks, with a further three of the latter under construction.

For 2024, CBRE registered 31,000 sqm of new retail unit completions across the country, with 96% of these located in provincial cities. These are typically small retail parks and retail warehouses, averaging 4,000 sqm each. By early 2025, the total modern retail stock was expected to reach 4.6 million sqm, comprising 36% retail warehouses, 32% shopping centers and 32% retail parks.

Demolish and Rebuild

One of the first modern shopping center developments in Central and Eastern Europe, the 34,000 sqm Duna Plaza in Budapest, was delivered in 1996 and renovated in 2002. It is to be demolished in 2026, and a new 50,000 sqm Duna Mall will be developed at the location overlooking the Danube on Váci út.

The owner, Indotek, is also extending the Alba Plaza mall it owns in Székesfehérvár, 64 km southwest of Budapest, by road.

“In Budapest’s prime shopping centers, the vacancy rate is minimal, at just 1-2%. Prime regional shopping centers have also seen post-COVID vacancies filled almost everywhere, maintaining low vacancy rates. This trend is highlighted by the extension of Duna Plaza, adding 15,000 sqm, and the Alba Plaza expansion in Székesfehérvár, which will add approximately 20,000 sqm by 2028,” comments CBRE.

Although Hungary had the first Western-style shopping centers in CEE, it now has one of the lowest modern retail pipelines in the region, with

just 42,000 sqm under construction. Analysts have expressed concerns over governmental proposals to make the required permission for changes in the use of commercial spaces above

400 sqm

tenant- rather than space-specific, which could make retail less attractive to developers and investors.

Developers are currently opting for smaller provincial retail formats, such as retail parks and strip malls of 4,000-5,000 sqm, which provide more flexibility for tenants and do not require the higher critical mass of developing shopping centers in the current uncertain market environment, according to Cushman & Wakefield.

“In the retail sector, countryside strip malls are attracting interest from tenants. Brands are increasingly looking beyond Budapest, aiming to establish broader national coverage,” says Attila Madler, country chief asset management officer at CPI Hungary.

“The success of such developments depends heavily on securing the right location and creating a branded product that attracts flagship tenants. For countryside retail parks, selecting the right location is crucial. Once established, attracting flagship tenants with a branded, well-positioned product is the main challenge,” he argues.

Attractive Assets

Dominika Jedrak, director of market insights for Poland & CEE at Colliers, agrees about the attraction of these smaller developments.

“Retail parks have proven their value not only as essential shopping destinations but also as flexible assets capable of responding to market challenges. Their openair layouts, ample parking, and their focus on necessity–driven retail have

kept footfall and investor interest high,” she says in the Colliers ExCEEding Borders Retail Report.

“Across the CEE region, we have a renewed focus on sustainability, placemaking, and tenant diversification, all contributing to the sector’s longterm appeal,” Jedrak comments

Another vehicle for new retail development is as part of mixeduse projects. One such ongoing scheme in Budapest project is the suburban Zugló Mall by Bayer Property Hungary, which will provide around

11,000 sqm of retail as part of the Zugló City Center mixed-use office, residential and retail project located in the suburban District XIV. The developers aim to create what they term a new city quarter as part of an urban regeneration plan that is due to deliver later in the year.

Of the 22 shopping centers in the capital, only eight meet institutional standards according to Cushman & Wakefield. These are widely viewed as the leading centers with waiting lists for suitable spaces for tenants and minimal vacancy rates.

“The development market is primarily focused on repositioning and upgrading outdated retail infrastructure. With 93% of Hungary’s shopping centers over a decade old, many struggle to meet modern consumer expectations and retail demands,” comments Cushman & Wakefield on current shopping center stock in Budapest.

“In the current demand environment, a number of shopping center owners have improved their F&B and food court offerings. LEED or BREEAM In-Use sustainability accreditations are seen as a necessity for owners to obtain finance. Retail will increasingly prioritize mixeduse, last-mile logistics and ESG-friendly tenant mixes,” says Zsombor Barta, founding partner at Greenbors.

Hotel Sector Seen as Attractive Development Option

The hotel and leisure sector has become an ever more popular development option as Budapest attracts a rising number of visitors; Budapest Ferenc Liszt International Airport saw its highest annual passenger traffic to date at 17.6 million in 2024.

Analysts have recorded a significant hotel pipeline for Budapest with foreign investors looking to enter the market in partnership with local developers and global brands. Redeveloping welllocated classic buildings is a favored development model due to the scarcity of vacant sites and the significantly higher number of buildings needing renovation in the historic center of the capital.

“In 2024, passenger traffic at Ferenc Liszt International Airport surpassed pre-pandemic levels, driven by re-nationalization and renewed strategic route development. Forecasts project 2.2% annual passenger growth through to 2035, reinforcing longterm momentum,” comments Attila Radvánszki, director of the hospitality consultants, Horwath HTL Hungary.

“On the ground, hotel supply is scaling up, with a 16% increase in room count expected by 2030 (roughly 3,700 rooms) led by the expansion of international brands.

It only confirms Budapest is actively shedding its “cheap(er) destination” image as the city’s tourism strategy has matured through the collective efforts of hoteliers, city authorities, and the tourism board,” he adds.

This year, nine hotels are expected to open, which will bring approximately 1,900 rooms to Budapest, according to CBRE. Between 2026 and 2028,

CBRE anticipates the addition of a further 11 Budapest hotels (1,880 rooms) that are currently under construction. Another 11 hotels, comprising 1,828 rooms, are in the planning phase.

If all these projects come to fruition, the Budapest hotel market could expand by 3,700 rooms by 2028. Outside of the capital, development numbers appear to be falling; around 1,000 rooms are currently at the planning stage and expected to open by 2028.

Between now and 2027, over 60% of Budapest’s new hotel supply will come from the “Upper Upscale” (653 rooms) and “Upscale” (466 rooms) segments, signaling a clear shift toward higher-

end offerings. This aligns with the growing presence of international hotel companies and brands, according to Horwath HTL. The Upscale Mamaison Vibe Hotel Budapest Downtown is due to deliver 96 rooms in Q4 of this year.

UNESCO Luxury

At the luxury end of the hotel market, the St. Regis Hotel Budapest, part of Marriott International, is due to deliver a 12,000 sqm hotel with 102 rooms and suites, spa and restaurants in the historic Klotild Palace, a UNESCO World Heritage site, in the first half of 2026. The Qatari Ali Bin Ali group owns the building.

“There are 2,000 rooms under development, either under construction or at the planning stage, in Budapest. I think that international brands are very eager to plant their flags in Budapest. Therefore, it is not difficult to find a good brand for your hotel if you have a good project,” comments Péter Takács, a partner at Newmark VLK Hungary.

In the “Upper Upscale” sector, the BDPST-owned Equilor Asset Management acquired the former Budapest Sofitel hotel overlooking the Danube in 2022 and is redeveloping and refurbishing the building to re-launch it under Accor’s luxury lifestyle brand, SO/. The complex will consist of 350 rooms, 56

suites, four food and beverage outlets, a rooftop restaurant, and a spa/fitness/wellness area; it is scheduled to open next year.

A notable trend in Budapest has been for the purchase and redevelopment of heritage-listed classical Central European buildings into hotels in prominent protected locations, giving the buildings a new use-value while at the same time preserving the feel of the historic center of the city.

“The best performing hotels are in these interesting, historic buildings. The redevelopment of historic buildings offers a unique branding opportunity and capitalizes on Budapest’s rich cultural heritage, appealing to all levels of tourism demand,” argues Takács. “However, such projects often face regulatory hurdles and higher renovation costs due to the preservation requirements; usually, there is a constraint on the number of rooms. A new building is just more efficient; on the other hand, empty plots or buildings that can be demolished in good locations are hard to find. That is why there is an obligation to convert or renovate; therefore, we will see more conversions of historical buildings,” he believes.

Cultural Heritage

Restoring historic buildings into boutique hotels preserves cultural heritage while offering unique guest experiences. There are several projects in planning or vision stage focusing on adaptive re-use of residential or office buildings, as their historic character, if located centrally enough, has significant attractiveness for international visitors seeking genuine experiences, says Radvánszki.

In one such heritage redevelopment of an office building, the U.K.based Forestay Group, in a strategic partnership with Recorde Asset Management, has purchased Váci utca 81 for redevelopment into the 283key Moxy Budapest Downtown, an “Upper-Midscale” hotel and apartment hotel project scheduled to open in the second half of 2026.

The developer is targeting BREEAM “Excellent” accreditation, the first such high sustainability accreditation for a hotel in Hungary, according to Forestay Group.

“This property offers a unique opportunity to integrate a cutting-edge technological concept into a historically significant location,” comments Bálint Botos, managing director of Forestay. With regard to sustainability, two hotel developments by Wing, the dual-branded Ibis and Tribe Budapest Stadium Hotel and the Tribe Budapest Airport Hotel, have obtained BREEAM certification. The Stadium Hotel is the first in Hungary to achieve the highest BREEAM In-Use “Outstanding” category rating.

“Wing’s hotel division has become a major player in Hungary: we have delivered more than

1,000 hotel rooms and therefore have complex knowhow as a developer, investor and operator. We strongly believe that sustainability and guest experience are not mutually exclusive,” says Ernő Takács, deputy CEO of hotels and commercial properties at Wing.

“The ‘Outstanding’ BREEAM In-Use certification awarded to Ibis and Tribe Budapest Stadium Hotel marks a milestone not only in the Hungarian hospitality sector but also on the international stage, “adds Greenbors’ Barta.

“This rating represents the highest level of recognition for the sustainability performance of existing buildings, underpinned by comprehensive solutions in energy efficiency, water management, waste handling, and operational practices,” he explains.

“For Greenbors, it is especially important that more and more Hungarian developments meet international standards, helping to place Hungary firmly on the map of sustainable hospitality,” Barta, a certified BREEAM assessor who worked on the accreditation, adds.

in Brief News Real Estate

Home Start Scheme Sees HUF 400 bln in Loans in 1st Month

The Home Start subsidized credit program for first-time buyers got off to a strong start in September, according to a statement issued on Oct. 14 by the Prime Minister’s Office. Speaking after a meeting of the House and Real Estate Market Advisory Board (LITT), Ministerial Commissioner Miklós Panyi said there was strong demand for the program, which launched smoothly. Around 15,000 loan applications have already been submitted, with thousands more in progress. Based on finalized contracts, more than HUF 400 billion entered the credit market in September, with applications evenly spread across the country, according to feedback from banks. Approximately 80% of applicants are under the age of 40, with the average age being 34, he said. Panyi also noted that, according to a rental market report, apartment rental prices declined by 1% nationwide from August to September, marking the first such drop in five years.

Construction Output Falls 15.2%, Civil Engineering Slumps 34.8%

Hungary’s construction sector output dropped 15.2% year-on-year in August, according to data released by the Central Statistical Office (KSH) on Oct. 14. When adjusted for the number of workdays, the decline was 13.6%. Output in the buildings segment slipped 2.3%, while civil engineering output plummeted 34.8%. In nominal terms, sector output totaled HUF 562.8 billion in August, with buildings accounting for 70% of the total. On a month-on-month basis, construction output fell 11.4% when adjusted for seasonal and workday effects. Order stock at the end of August was up 17.7% compared to the same period a year earlier. While orders in the buildings segment declined 10.4%, civil engineering orders surged 35.7%. New orders rose 123.1% over the same period, driven by contracts for transport infrastructure. New building orders dropped 8%, but new civil engineering orders jumped 245.2%.

Budapest New Home Prices up 15.5% y.o.y. in Q3

The average price of newly built homes in Budapest rose 15.5% year-on-year in Q3 to HUF 1.77 million per sqm, according to listed real estate broker Duna House, citing data from Eltinga. The average price of a new home in the capital now stands at HUF 128.2 mln, slightly lower than in the previous quarter, Duna House’s Péter Szegő said on Oct. 13. While demand for new-built homes in Budapest remains strong, the market is expected to stabilize gradually as supply continues to rise, the firm said. Some 2,220 new homes were sold in the capital during Q3, down 6% from the previous quarter but still well above the long-term average. Over the

past 12 months, a total of 9,611 newly built homes were sold, marking the highest annual figure in the last decade, it added.

Home Rental Rates up 6.5% y.o.y. in September

Home rental prices in Hungary rose 6.5% year-on-year in September, according to data compiled by the Central Statistical Office (KSH) from listings site ingatlan.com [Real Estate]. In Budapest, rental rates climbed 6.6% over the same period. On a monthly basis, nationwide rental prices declined 1.1%, while rates in the capital edged down 0.2%. Currently, more than 17,600 rental properties are listed on ingatlan.com.

Encs Industrial Park in HUF 800 mln

Infrastructure Upgrade

Infrastructure at an industrial park in Encs (235 km northeast of Budapest by road) is being upgraded with HUF 800 million in support from the European Union and the state, the town said on Oct. 8. The project, scheduled for completion in March 2026, will add road, waterworks, and sewerage infrastructure to the park.

Biggeorge Signs HUF 20 bln Investment Deal

Biggeorge Property Nyrt. has signed an investment agreement following the successful outcome of a tender under the Housing Capital Program, according to a release published on the website of the Budapest Stock Exchange on Oct. 1. The company informed shareholders that, as previously announced on April 17, 2025, the agreement with the investor was finalized. The HUF 20 billion investment will be disbursed in multiple stages, with the final payment due no later than March 31, 2026.

MBH Analysts see Real Estate Sales Nearing 150,000

Hungary’s real estate market is showing signs of a strong rebound this year, with the number of property transactions potentially reaching 150,000, mainly driven by the Home Start subsidized fixedrate loan for first-time buyers, according to analysts at MBH Bank. Melinda Szabó, head of sector analysis at the bank, noted that while home completions barely exceeded 13,000 last year, building permits issued in the first half of 2025 rose more than 40% year-on-year. She said the government’s capital program supporting new home construction, combined with the Home Start scheme, would significantly bolster supply. MBH Mortgage Bank CEO Gyula Nagy added that, considering the employment prospects, the house priceto-income ratio, available subsidies, lending terms, and inflation, it is now easier for first-time buyers to purchase a home than at any point in the past 15 years, despite recent price increases.

Residential Emerges as a Major Development Sector

Residential is seen as an attractive development sector, with both specialist and nonspecialist players constructing multiunit complexes featuring green areas, retail functions, and services in urban locations with direct transport links.

market in Budapest and, increasingly, in provincial cities beyond the capital.

The supply of affordable housing across Europe emerged as one of the main topics at panel discussions at Expo Real in Munich this fall. The housing stock in Hungary is seen as under strain due to increasing demand and relatively low supply. Rising prices have prompted concerns over the growing affordability gap, prompting the Hungarian government to introduce programs to alleviate this, most notably its Home Start scheme, which was launched on Sep. 1.

The leasing market is also growing, with the private rented sector seen as a promising area for investment.

Investor activity has been revitalized, and there is a significant pipeline of ongoing constructions being stimulated by new government measures, says Géza Germán, deputy CEO at the leading Hungarian architecture, engineering consultancy and project management firm, Óbuda Group.

With the government launch of the Home Start Program, which aims to enable first-time buyers to access subsidized loans for residential purchases, a rise in both home sales and, possibly, prices is expected. Concerning housing delivery, the government’s Housing Capital Program is designed to support the construction of new housing and significantly expand the stock of high-quality residential real estate in Hungary.

Reflecting the growing residential demand in the country and the resulting development and investment possibilities for the sector, several developers are active in the residential

The residential consultancy Duna House expects a 10-20% rise in residential prices and transaction volumes for the year. The outlook for the sector is seen as encouraging due to the macroeconomic factors, market conditions, and governmental measures and their probable favorable impact. However, the widening gap between demand for housing and the sluggish pace of supply continues to put pressure on home prices and further limits housing affordability.

Biggeorge Property (BGP) had around 1,600 units under construction this summer and land for a further 2,500-plus apartments. Looking ahead, the company’s project pipeline is set to expand further, with new launches scheduled into 2026 and 2027, reflecting sustained market momentum, according to Petra Demetrovits, sales director at BGP.

“Taking into consideration all feedback from potential clients and buyers during the planning procedure, successful projects need to offer sustainability: energy-efficient designs, green roofs, renewable energy systems, and eco-friendly materials are now baseline expectations,” she tells the Budapest Business Journal Buyers’ Wish List

Other requirements include open and green spaces, with landscaped parks, communal gardens, playgrounds, and outdoor fitness areas highly valued. Modern technology calls for the integration of smart home features, app-controlled systems, and digital community management tools. Safety and security are another priority, with 24/7 surveillance, secure entry systems, and well-lit communal areas, Demetrovits says. Mixed-use elements are also critical.

of Budapest,” says Tibor Tatár, head of Wing’s residential and office development businesses in Hungary.

Mixed-use developments, combining apartments with retail, services, and sometimes office space, have become a defining trend in Hungary’s urban property market. These projects are seen as resilient, offering built-in community, convenience, and adaptability to changing market conditions. BGP’s flagship projects, such as Waterfront City, exemplify this approach, integrating living, shopping, leisure, and workspaces in walkable environments. Cosmo Residence and the Westside Grand and Westside Garden projects include great location retail units, according to Demetrovits.

“Projects increasingly blend residential with retail, sometimes office space, playground, and outdoor fitness areas, fostering vibrant, walkable communities,” she adds.

BGP currently has more than 800 apartments on offer. The construction of the Árnyas 40 Villa Suites project is well underway, with a projected handover deadline next year.

The development features six four-story villa buildings spread across a twohectare site in Budapest’s District XII. Pre-sales of the project had reached 65% by mid-October, according to BGP.

Another of its developments, Cosmo Residence, in District XIII, is also under construction, with a planned completion date of 2027. The complex will deliver 231

apartments on eight floors, as well as 15 ground-floor retail units; pre-sales of Cosmo Residence units also stood at 65% in mid-October.

The leading commercial property developer Wing has acquired a 10,900 sqm development site in Debrecen.

Under its residential development brand, Living, the company plans to build around 400 modern, energy-efficient apartments in several phases.

“This will be the company’s first residential development outside of Budapest, addressing the strong demand in the local real estate market and significantly contributing to the expansion of new housing supply in Hungary’s secondlargest city. The project is set to launch in the second half of 2026,” the firm says.

The vast majority of the apartments will be available through the favorable loan schemes of the Home Start Program, with the project being realized with the support of equity investment won through the Housing Capital Program.

Important Milestone

“This completed transaction marks an important milestone for Living, as it enables us to launch our first residential development outside

Another leading Hungarian residential developer, Cordia (part of the Futureal Group), is constructing its latest large-scale urban rehabilitation development on a 14-hectare former industrial area on the Pest side of the Danube in District XIII. According to the development plans, more than 2,500 apartments will be built in several phases with residential towers reaching 64 meters.

“We have around 15 towers planned, with one launched every year. Most apartments, with residential towers reaching 64 meters, will offer views of the Danube and the Buda Hills,” says Gábor Futó, co-founder of Futureal.

“The project will be served by direct metro connections, 10 minutes from the city center and more than 100 shops, restaurants, service facilities, and sports amenities. We see in this abandoned area a place where buildings have zero local carbon emissions and exceed the strictest, most forward-looking energy requirements. We have envisioned a neighborhood that provides all services locally,” he adds.

The first phase of Le Jardin residential park by Living has received its final use permit, and the handover of 165 apartments with “A+” energy rating has started. Living prioritized environmentally friendly and energyefficient solutions, making it one of the first residential developments in Hungary to obtain a BREEAM “Very Good” certification in the design phase, according to Wing.

“Most new developments are making progress in energy efficiency and the use of renewable energy, due to regulations and rising demand for lower utility costs. When it comes to green certifications such as BREEAM and LEED, they are not widely used in residential projects yet. There is still room for improvement when it comes to sustainable design, longterm affordability, inclusive design, and transparency in planning and construction processes,” concludes Germán of Óbuda.

Facing Generational Change, Digitalization and AI, and Setting Course for the Future

Béla Varga, CEO and co-founding partner of Tecton Kft., talks to the Budapest Business Journal about the changes his firm has witnessed since its foundation in the late 1990s, and the challenges it is embracing for its future development.

BBJ: Tecton was founded in 1998. How has the market changed since then?

Béla Varga: Twenty-seven years is a long time. In private life, you could become a father and a grandfather. In business, you can accomplish a few cycles of dreaming, achieving, and growing. The market experienced several highs and lows, featuring well-planned growth and sudden collapses in 2008, 2020, and 2022. Everybody knows what these dates mean!

BBJ: You have been involved in a portfolio of more than 200 projects, spanning everything from cultural to educational buildings, residential, sports complexes and even a church, but the bulk of your work has been in the industrial sector. Do you see the firm as a specialist in this field?

BV: Yes, definitely. Industrial projects form the main business of Tecton. All other fields add color to our activity and reveal that we are a diverse, active team creating value in every commission we undertake. Our projects show us from different sides.

BBJ: Of those 200 reference projects, which are you most proud of, and why?

BV: All projects have their own reasons for us to be proud, and they are all our individual children. They are our brainchildren. Should I list the several factories for Samsung Electronics in Hungary and the neighboring region, which have been our growth backbone for 20 years? Or the general designer services of Duna Arena,

which was a “mission impossible,” but we managed within the given time frames? Or the three design-build jobs simultaneously managed during COVID, bringing us peak revenues at a time of extreme exposure? If you ask me which of my children I am most proud of, I can hardly select. It would be unfair to all the others.

BBJ: Tecton can both design and build, as well as act as a consultant on specific areas. How does the share of workflow breakdown between design, build, designbuild and consultancy?

BV: Tecton offers an individual business model to its clients in every case. Yes, there is a massive difference between a design, a design-build and a consultancy job, but what is shared in all is that we are providing a onestop service to our clients within their preferred service range. From our aspect, it is like cooking various types of food in the same kitchen. All the various kinds of services need different resource mixes, with a changing proportion of in-house resources and external partners. One of our strengths is that our architects

and way of conducting business. This is an expertise one can only gain through many years of working closely with Korean and Chinese firms.

BBJ: You have also worked in Poland, Romania, Slovakia and even Egypt. What, if any, are the aspirations to become a regional player?

BV: We must be present where things are happening. In the years from 2006 to 2016, Tecton had several projects in the countries mentioned. In recent years, we have focused chiefly on Hungary as our country has become a sort of hub for Asian (primarily Chinese) investors. As these companies are eager to move deeper into Europe, they need a partner who can lead them through the maze of European and various local expectations and regulations. We believe that the expertise we gained in massive industrial projects in Hungary can be transferred to other countries, so, yes, I think it is time we expand our activities internationally once again.

BBJ: How do you see the design and construction market changing in Hungary and the European Union in the future?

BV: It is no secret that there are increasing challenges in our business. There is a significant shift among the key players in the “investors’ playground,” and a re-distribution in projects, target regions and locations. China is on the rise!

BBJ: What is next for Tecton?

are socialized and trained to perform in all of the above contract models and service methods. An architect can be involved in design, professional coordination, authority and client communication, and more. We are not afraid of visiting building sites, putting on rubber boots and a hard hat. This is the job of the genuine architect in a broader and more holistic sense.

BBJ: What sets Tecton apart from your competitors? Is your ability to both design and build a project unusual, for example?

BV: It is definitely one of the unique abilities that sets us apart. Being able to offer key-ready solutions for our clients attracts a lot of attention. But there are other distinguishing points. Ours is a truly international firm; we have colleagues from five different countries and can communicate in six or seven languages in our work. Speaking Hungarian is not a “must-have” to work at Tecton, but English is. The third thing I would mention is our experience with East Asian clientele. It is not just the language; more importantly, we have a deep understanding of their mentality, expectations,

BV: Every company has phases in its evolution; now I strongly feel it is time for “Tecton 3.0.” Tecton 1.0 was a small design firm focusing on one or two projects at the time. Tecton 2.0 was a rapid growth period, when we became a 50-plusmember mid-sized firm. What will Tecton 3.0 look like? Our mission is called F.L.A.T.: Foresee, Learn, Accomplish, Together. Our vision for 2028 is to create a new legacy.

One aspect of this, going international, I have already mentioned, but there are two other aspects I feel strongly about. Firstly, the working culture is shifting. There are new expectations, chiefly from the younger generation, for more flexibility in terms of space and time. Simultaneously, a generational change is occurring in Tecton. From these ingredients, we must “cook” a new working culture. Secondly, there is digitalization. Tecton is already quite a techsavvy company, but far from having completed the digital transformation. The arrival of various AI tools is turning our BIM-based workflow upside down, mostly in a positive way. I see tremendous opportunities in improving our productivity using these tools, but we must keep a cool head to select the right platforms and technologies and to avoid costly cul-de-sacs.

As we chart a deliberate course to sail into our future, we are confident in ourselves and understand that only those who deliver the best results can stay alive.

Real Estate Developers

1

2 BIGGEORGE PROPERTY www.biggeorgeproperty.hu

3 PANATTONI HUNGARY DEVELOPMENT KFT. www.panattonieurope.com

20,779

4 INNOVINIA innovinia.hu 16,637

5 TECTON KFT. www.tecton.co.hu

8,846

(2026),

Silverbay Residence (2025), Szemesbay Resort (2025), LogStar Park Fehérvár (2026), Árnyas 40 Villa Suites (2026), Újbuda Garden (2026), Béke Garden (2026), Westside Grand (2026), Paris Maison (2026), Cosmo Residence(2027), Óbuda Garden (2027), Újbuda Residence (2027), Capri Residence (2027), Madeira Residence (2027), Waterfront City V (2027)

BTS Rossmann (2026), Panattoni Park BudapestGyál (2026)

IGPark Kecskemét south ‘C’ building (2025), IGPark Nyíregyháza (2025)

BYD (2025), CATL (2026), Hankook Tyre, Samsung SDI, BAMO (2025)

Liget Center (2024), Liberty (2024), ibis&TRIBE Budapest Stadium (2023), East Gate PRO Business Park (2023), Lighware-HQ I. - HOP (2023), Park West 1 (2022), Park West 2 (2023), Kassák Passage (2022), GOBUDA Mall (2022), B&B Hotel Budapest City (2021), Metropolitan Garden (2021), Siemens-evosoft HQ (2020), Telekom Campus (2018), Wizz Air Training Center (2018), ibis Styles Budapest Airport Hotel (2017) RTL Magyarország, Flowserve, Lightware, Zenitech (Autsoft), Praktiker, Coop Wingholding Zrt. (100)

Europe Garden (2005), Sasad Liget (Phases I-VII) (2008–2021), Garibaldi Residence (2009), Parkway Offices (2009), Bécsi Corner Office Building (2009), Audi Logistics LogStar Park Városkapu (2022, 2023), Broadway Residence (2017), Dagály Residence (2019), Emerald Residence (2020), Emerald Hotel & Suites (2020), Elisabeth Residence (2021), Németvölgyi Residence (2021), Waterfront City I-III (2021–2023), Westside Residence (2022), LogStar Park Városkapu (2022–2023), Westside Garden (2023), LogStar Park West Gate (2023), Spirit Residence (2024), Waterfront City IV (2024) A

Panattoni City Dock Törökbálint (2023), ZF Kecskemét (2025), ZF Debrecen (2025)

IGPark in Debrecen, IGPark Miskolc phases 1-2, IGPark Kecskemét south ‘A’ and ‘B’ buildings, IGPark Kecskemét west, IGPark Tiszaújváros, IGPark Polgár

INZI (2020), CATL A (2022), BMW (2024), SK (2021), Flex Films hungary (2021), Ecopro (2024)

Árkád 1. Budapest, Örs vezér tere (2002), Árkád Pécs (2004), Árkád Győr (2006), Debrecen Fórum (2008), Árkád Szeged (2011), Árkád 2. Budapest, Örs vezér tere (2013)

Tibor Nagygyörgy (95), Tamás Nagygyörgy (5)

ZF, Rossmann, Pharma Pack, Bidfood, Eviron Systems, Fuchs Oil, Petkus –PG Europe S.á.r.l. (100)

Individuals (100)

Tibor Nagygyörgy Dávid Farkas Anita Király

1023 Budapest, Lajos utca 28–32. (1) 225­2525 info@biggeorge.hu

László Kemenes Dániel Gajdos –

Ádám Székely Máté Kovács Balázs Czifra

Samsung, SK, BYD, CATL, BMW, Flex

Béla Varga (62) Na Kyungsuk (38)

Béla Varga Peter Jancovic –

1123 Budapest, Alkotás utca 50. (1) 678­9200 huinfo@ panattoni.com

1115 Budapest, Bartók Béla út 105–113. (1) 481­4530 info@innovinia.hu

1031 Budapest, Záhony utca 7. (1) 426­0263 tecton@tecton.co.hu

ECE Projektmanagement International GmbH (100)

Sandra Brigitte Müller, Dr. Nóra Kismarci, Gabriella Szarka, Mária Verebélyi, Ulrich Schmitz, Monika Adrianna Pyszkowska

1106 Budapest, Örs vezér tere 25/A (1) 434­8200 info@ece.hu 7

HelloParks Páty PT5 (20242025), HelloParks Fót FT3 (2024-2025), HelloParks Maglód MG4 (2024-2026)

HelloParks Páty PT3 (2025), HelloParks Alsónémedi AN1 (2025), HelloParks Fót FT2 (2023), Budapest ONE phase 1 (2020), Budapest ONE phases 2-3 (2022), ETELE Pláza (2021), Corvin Innovation Campus (phase 1) (2022)

dm-drogerie markt, DHL, Gebrüder Weiss, IBM, Oracle, Roche (100)

Péter György Futó –Tímea Aladics­Szili

1082 Budapest, Futó utca 47–53. (1) 266­2181 info@ futurealgroup.com

building (2009), The Quadrum office building (2008), Haller Kert office building (2008), Market Central Ferihegy shopping park (2007)

International, Europa Capital, DEKA, Erste, Raiffeisen, M7, Atenor

Lipták, Tomás Krajcír

1138 Budapest, Esztergomi út 31­39. (70) 672­1580 hungary@ hbreavis.com

1124 Budapest, Csörsz utca utca 49–51. (1) 382­5100 hu.office­bud@ whitestar­realestate. com 13

Star Real Estate LLC (100)

Eiffel Square (2010), Eiffel Palace (2014), Váci1 (2016), Promenade Gardens (2018), Szervita Square Building (2020), Villányi Gardens (2023 A (100) –

Korzó Bevásárlóközpont, Nyíregyháza, S-PARK Kaposvár, Kaposvár A

Phase 1 (2022), Nordic Light Trio (2020), Mill Park (2018), Nordic Light Uno & Duo (2016) A

16

White House office building (2018), GTC Metro office building (2010), Spiral office building (2008), Sasad Resort residential park (2008, 2010), Riverloft office and apartment house (2007), Riverside apartment house (2004)

Partig Beteiligungs­ und Vermögensverwaltungs GmbH (100)

Skanska Commercial Development Europe AB (100)

Krisztián Barabás Marietta Biczó –

Balázs Czár –

1052 Budapest, Deák Ferenc utca 5. (1) 473­1209 info@ horizondevelopment.hu

Andrea Schönhauer

Aurelia Luca András Péterfy Alexandra Bucur

Gyula Nagy, Zsolt Farkas

Globe Trade Centre S.A. (100)

Schőmer

(69) (31)

Csaba Zeley Balázs Kovács

2060 Bicske, Spar út 1. (20) 823­7000 iroda@ ses­european.com

1133 Budapest, Váci út 96–98. (1) 382­9100 property@skanska.hu

1138 Budapest, Népfürdő utca 22. (1) 412­3680 info.hu@ gtcgroup.com

1026 Budapest, Pasaréti út 122–124.

info@bdpstzrt.hu

1034 Budapest, Bécsi út 68–84. (1) 785­5208 info@atenor.hu

1027 Budapest, Horvát utca 14–26. (1) 225­0912 office@ convergen­ce.com

Asset Management Companies

5

4

2

IGPark Miskolc phases 1-2, IGPark Debrecen, IGPark Kecskemét south buildings ‘A’, ‘B’, ‘C’, IGPark Kecskemét west, IGPark Tiszaújváros, IGPark Polgár, IGPark Karcag, Bartók Udvar office complex

Ádám Székely Máté Kovács Balázs Czifra

Gergely Pados –Orsolya Németh

Hubert Mühringer

1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 info@innovinia.hu

1052 Budapest, Deák Ferenc utca 5. (1) 268-1288 info.budapest@ cushwake.com

1077 Budapest, Wesselényi utca 16. (1) 479-6020 office@ addvalgroup.com

1095 Budapest, Lechner Ödön fasor 6. (1) 501-2800 office@caimmo.hu 6

Budapest, Váci út 117–119. (1) 688-4400 office@ robertson-pm.hu

Zeley Balázs Kovács

1027 Budapest, Horvát utca 14–26. (1) 225-0912 office@ convergen-ce.com

1095 Budapest, Lechner Ödön fasor 10/B (1) 456-6200 info@trigranit.com

utca

1093 Budapest, Közraktár utca 30. (1) 382-7560 office@gamma-am.hu

1123 Budapest, Alkotás utca

(1) 785-4985 info@naiceland.hu

cpipg.com

4 Socialite

Discovering the Iconic Hungarian Trapper Jeans Brand in Buda

One fine afternoon not so long ago, my Hungarian wife and I were out for a stroll on the Buda side when we discovered the Trapper store on Fő utca. “My first ever jeans were Trapper,” she said wistfully.

DAVID HOLZER

Walking into the small store, we stepped back in time. An enormous poster of a bearded, long-haired dude in double denim, who looked a lot like outlaw country and western singer Waylon Jennings, dominated the back wall.

Stacks of jeans in different shades of indigo sat on wooden shelves that lined two walls. Denim jackets and shirts hung on a rail near the door. A tanned, fit-looking man with sharp eyes stood behind a counter chatting with a middle-aged Hungarian man and woman who’d just bought his ‘n’ hers jeans. The man behind the counter introduced himself to us as Sándor Nádasi, the founder of Trapper.

A beaming Nádasi senior radiates nostalgia when he tells the Trapper story. Born in Debrecen, he trained as a medical technician, but when imported Levi’s hit Hungary in the 1970s, he was managing Budapest’s only jeans store, on Andrássy út.

Most of that first shipment of Levi’s came to his store. The problem was that, as Nádasi says, “Hungarians couldn’t afford the high price of Levi’s, which at that time cost HUF 980 a pair and, in any case, there weren’t enough to meet demand.”

Nádasi saw a mouthwatering opportunity to create a Hungarian jeans brand and grasped it with both hands. Next, he needed to find a denim source. Luckily, his partner at the time worked in the stateowned Linen and Weaving Company and introduced Nádasi to them.

He persuaded them to make denim thicker than that used in Western jeans, while existing brands inspired the design of the jeans.

The government factory that made the denim closed at the end of the 1980s. Today, the material comes from Brazil, where Levi’s were once made. Trapper Jeans are handmade in a small Budapest factory.

Artisanal Jeans

“They’re kind of artisanal,” says Nádasi Jr., who was translating for his father. So, Nádasi Sr. now had his product, but didn’t yet have a name. The jeans factory held a competition, and the winner who came up with Trapper was paid HUF 500. For Hungarians, the name, which most didn’t know the meaning of, conjured up images of the Wild West.

“But we couldn’t sell directly to other countries in the Soviet Bloc. People from countries like the then Yugoslavia and East Germany came to Hungary to buy Trapper Jeans, which they would then sell in their country at a higher price.”

I’m not sure if Trapper Jeans were known in Cuba, but, at the height of their fame, Raúl Castro, Fidel’s younger brother, called into Nádasi’s Andrássy út store with his bodyguards and bought a jacket and jeans outfit. He’d learned the Western celebrity trick of never carrying cash. Castro gave Nádasi a Cuban cigar (which he still has), but did pay later.

When the Hungarian socialist regime collapsed in 1989, Nádasi opened his own Trapper store on Rákóczi utca. After this closed in 1990, he opened the Fő utca store. A few years later, he acquired the Trapper trademark. He’s visibly proud that Trapper is a family-owned brand.

Loyal Customers and Hipsters

Alongside customers who’ve stayed loyal to Trapper since the beginning and sometimes buy several pairs of jeans and a couple of jackets at a time, the brand has acquired cachet with younger hipsters, including a couple of Hungarian musicians.

“It’s a cult,” says Nádasi Jr. He makes the impressive claim that the jeans, which now cost HUF 19,000, will last for 15 years. They’re available in the classic style and loose fit. Trapper doesn’t follow fast fashion trends.

“We only make about 2,000 pairs a year,” Nádasi Jr. explains. “We couldn’t afford to change our designs to follow fast fashions even if we wanted to, which we don’t.”

Judging from the comments book that the father and son show us, not chasing trends has been the right move. Denim aficionados from all over the world stumble across the store and walk away converts to the cult of Trapper and classic Hungarian Western style jeans. As we’re saying our goodbyes, I too become a cult member.

An immediate success when launched in 1978, Trapper Jeans sold for HUF 600 a pair, roughly HUF 40,000 today or around

EUR 100.

Still not that cheap. Nádasi says the price resulted in the Hungarian communist leader János Kádar “complaining that they were still too expensive” rather than celebrating the launch of “Hungarian jeans for Hungarian people.”

Despite the price, Trapper Jeans proved to be hugely popular and not just in Hungary. Their fame spread throughout the Eastern Bloc; to this day, Trapper is still much-loved in the former Soviet Union.

“We weren’t allowed to sell to the West, so we had no choice but to look east for markets,” Nádasi says.

Nadási Sr. looks at my expensive, flapping corduroys, cut to end above my shoes, as is the style, and sells me a pair of Trapper cords with longer legs that break on my trainers. “Man trousers,” he says in Hungarian, smiling.

I can understand why Trapper inspires such warm feelings in Hungarians, such as my wife, whenever they see the name. It’s part of this country’s real cultural history. The designs have been unchanged since 1978. You still can’t buy Trapper anywhere in the West. When I asked Nádasi Jr. about the family’s plans for the future of the brand, he said he’d like to grow the business. I wouldn’t be surprised if, in the nottoo-distant future, we see Beyoncé poured into a pair of Trappers.

Merkel Returns to Hungary for ‘Freedom’ Book Launch

Angela Merkel, Germany’s former chancellor, visited Hungary in early October to present the Hungarian edition of her memoir “Freedom” (Szabadság) at the 30th Budapest International Book Festival. She also met Prime Minister Viktor Orbán during her first public appearance in Hungary since 2015.

Culture Matters

A regular look at culture issues in Hungary and the region

“Freedom,” published in Hungarian by Animus Books. The launch event included a life conversation with journalist Rebeka Bánszegi in cooperation with 24.hu.

Happy Childhood

Orbán received Merkel at the Carmelite Monastery, the prime minister’s official residence in Buda Castle. “Once a chancellor, always a chancellor,” Orbán wrote on social media after their meeting. According to his press office, the meeting was cordial.

The former German leader, who headed Europe’s largest economy between 2005 and 2021, was in Budapest to present

Merkel explained that during her years in office, she had little opportunity to explain her motivations. After stepping down, she wanted to provide her own perspective on her decisions.

“I didn’t write the memoir out of fear, but so that it becomes understandable what guided me for 16 years.”

The discussion covered four main themes: Merkel’s East German background, her experience as a woman in politics, the 2015 migration crisis, and her relationship with Russian President Vladimir Putin.

Reflecting on her youth, Merkel noted: “I had a happy childhood.” This was not an attempt to idealize the German Democratic Republic, which she described as a dictatorship, but nor did she wish to “deny or be ashamed of that past” because it forms part of her story.

On gender and politics, Merkel said that “being a woman was a much greater challenge than being East German.” Recalling her early career, she mentioned how Helmut Kohl had appointed her minister for women’s issues. As chancellor, Merkel later pushed for a 30% mandatory quota for women in corporate leadership.

“Since then, it’s always been possible to find women for leadership positions, and companies haven’t performed worse,” she noted.

Merkel also revisited her encounters with Vladimir Putin. She said that when Putin described the collapse of the Soviet Union as the greatest tragedy of the 20th century, she replied that for her it had been “the most fortunate period,” as it brought about German reunification and freedom for Eastern Europe.

“We see history from fundamentally different starting points,” she noted. She added that after the annexation of Crimea, “the basis for dialogue ceased to exist; from then on, we could no longer tell whether he was telling the truth.”

The refugee crisis of 2015 was also addressed. Merkel said her famous “Wir schaffen das” (“We can do it”) statement was not a carefully crafted slogan but a spontaneous remark. She said she considered it essential to express that Europeans must trust their ability to solve problems; otherwise, they risk losing their values.

Asked what she had learned most from her years in leadership, Merkel highlighted three experiences: initiative, solitude, and responsibility: “One becomes lonely because, ultimately, the boss must make the decisions. If something goes wrong, they alone bear the responsibility.” She added, “I loved it. It’s a wonderful feeling when one has such great responsibility.”

Should Hungarian Pharmacies be Able to Offer Other Services?

Around 50 guests attended the fifth Pharma CEO Breakfast organized by the Budapest Business Journal and its professional partners, Pheonix Pharma and Benu, at the Kimpton BEM Budapest Hotel on Tuesday, Oct. 7.

The event featured a keynote presentation by Dr. Ágnes Galgóczi, director of prevention and epidemiology at the National Public Health Center, entitled “The Introduction of Pharmacy-based Vaccinations and Related Opportunities for Expanding the Scope of Services in the Hungarian Pharmacy Sector.” She was then joined for an in-depth roundtable discussion to drill down deeper into the details alongside Dr. Judit Bidló, Deputy State Secretary for the Professional Management of Health; Dr. András Süle, chief pharmacist at Péterfy

From left: Robin Marshall, Dr. András Süle, Dr. Ágnes Galgóczi, Dr. Katalin Szalóki, and Dr. Judit Bidló.

Hospital Budapest; and Dr. Katalin Szalóki, CEO of the Association of Innovative Pharmaceutical Manufacturers Hungary. Robin Marshall, editor-in-chief of the BBJ, moderated the conversation.

Key takeaways included that a thorough framework must be drawn up before a rollout can begin, although Hungarian pharmacy associations are already working on this in the background. However, there is now a clear European trend towards expanding pharmacy service provision, meaning that Hungary can already draw on best practices. Importantly, the system will need to be voluntary, rather than imposed, but a firstphase rollout could take between six and 18 months. Crucial will be who pays for what

and when (equally valid for pharmacies and patients), and how it all connects to digital healthcare; an initial starting point might be a fee-for-service approach.

Given the alarming drop-off in vaccination rates among adults, expanding the base of professionals able to administer them could help increase both uptake and trust in healthcare, as well as raise esteem in the pharmacist profession through the addition of value-added services.

The keynote and roundtable were bookended by networking for like-minded stakeholders drawn from across Hungary’s pharmaceutical sector to exchange ideas and information. The BBJ thanks sponsor Phoenix Pharma for supporting the event.

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

Swiss-Hungarian Chamber of Commerce (Swisscham)

The latest HR Café, organized by Swisscham Hungary, offered an insightful and hands-on exploration of how ChatGPT and artificial intelligence can make everyday work easier, smarter, and more efficient. AI specialist Rita Jagodics led the interactive workshop at the Budapest Study Center of the University of Hagen. She provided participants with practical examples and useful tips on integrating AI tools into their daily professional routines. From communication and time management to content creation and data handling, her session demonstrated how AI can serve as a true partner in enhancing productivity and creativity.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK will present the results of its latest Business Climate Survey in Budapest next month. The survey reveals how German and other foreign investors perceive Hungary’s business environment, their expectations for the future, and the primary risks to their operations. Amid challenging economic conditions in both Hungary and Germany, experts will discuss investor sentiment, regional comparisons across Central and Eastern Europe, and current macroeconomic trends. Speakers will include Róbert Keszte, president of the DUIHK; Dirk Wölfer, head of communications and author of the analysis; and Ákos Kozák, owner and director of economic research at the Equilibrium Institute. The event will be in Hungarian and German, with simultaneous translation.

• When:  Tuesday, Nov. 11, from 10 a.m. • Where: House of German-Hungarian Business, Lövőház u. 30, 1024 Budapest • Fee: Free of charge, but prior registration is required. Register at www.ahkungarn.hu

Hungarian-Norwegian Chamber of Commerce (HNCC)

The HNCC held its regular steering committee meeting on Wednesday, Oct. 8. Participants reviewed the chamber’s professional and financial reports, as well as programs that have already been implemented and those that are planned. Ambassador Kristóf Altusz, a new member of the committee, was introduced at the event.

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH is once again preparing one of the most anticipated social and networking highlights of the business calendar, the 31st Annual Lobster Dinner, which will take place in November. Renowned for its vibrant atmosphere and Canadian flair, the event brings together the Hungarian and expat business communities for an evening of fine dining, entertainment, and celebration. Guests will indulge in fresh, full-sized lobsters flown in directly from Nova Scotia, alongside unlimited premium drinks, cocktails, and gourmet delicacies prepared by top local and international chefs. The night promises live music, engaging performances, exhibitors, raffle prizes, and a silent auction, creating a lively yet elegant environment where business and friendship blend seamlessly. Beyond the exquisite food and entertainment, the CCCH Lobster Dinner has become a hallmark of community and connection, offering an opportunity for professionals, partners, and sponsors to celebrate the strong ties between Canada and Hungary in style. With tables filling fast, guests are encouraged to RSVP early to secure their place at one of Budapest’s most beloved business community events.

• When: Saturday, Nov. 22, 6 p.m.-late • Where: InterContinental Budapest, Apáczai Csere János u. 12-14, 1052 Budapest • Fee: Members HUF 63,900+VAT; non-members HUF 79,900+VAT

Belgian Business Club in Hungary (Belgabiz)

Belgabiz held its monthly networking event on Thursday, Oct. 9, at the new MaMaison Hotel Chain Bridge Budapest, featuring a presentation titled “Flight Troubles: The Way to Compensation.” Sándor Békés from Visegrad+ Legal shared practical advice on air passenger compensation, and the many questions and personal stories from the guests turned the presentation into an engaging and interactive discussion. Afterward, participants enjoyed a relaxed evening with a buffet dinner, paired with the well-known Belgian beer Chimay Rouge, selected for the occasion by the Belga Sörmester. Guests also had the chance to taste this season’s new Belgian pralines, courtesy of G.I.F.T. Kft.

Italian Chamber of Commerce for Hungary (CCIU)

The CCIU invites members, partners and business owners to a complimentary special event on the challenges of generational succession in firms and companies, an increasingly important challenge for today’s business environment. The event will bring together Italian and Hungarian experts on the topic, along with first-hand testimonials of transitions. It will provide an overview of the most common pitfalls and practical strategies to help companies navigate succession. Participants will have the opportunity to engage in meaningful dialogue with entrepreneurs, professionals and stakeholders, exchanging ideas, tools and experiences. The event will be delivered in Hungarian and Italian with simultaneous translation. • When: Monday, Oct. 20, 9:30 a.m.-1 p.m. • Fee: Free of charge

Hungarian-French Chamber of Commerce and Industry (CCIFH)

On Tuesday, Sep. 30, binational economic relations took center stage at the 3rd Hungarian–French Business Forum in Budapest. The event, jointly organized by the Hungarian Export Promotion Agency and the CCIFH, was supported by the Enterprise Europe Network and CIC Bank Budapest. The forum was opened by Deputy State Secretary for Foreign Economic Development Katalin Bihari of the Ministry of Foreign Affairs and Trade and CEO of HEPA, with remarks from Anne Bernard (French Embassy in Budapest), László Károlyi (president of the chamber), and Gábor Péter Artner (deputy CEO, HEPA). Presentations from Bálint Mogyorósi (Embassy of Hungary in Paris), Dorottya Novak (Deputy Consul in Lyon), and Agnès Ducrot (director of the CCIFH) offered insights into export support and bilateral cooperation. Representatives of Alstom, Michelin Hungaria, Sanofi, and Valeo shared details of their procurement processes and supplier opportunities. A highlight was the story of Thermowatt, which demonstrated how a Hungarian SME successfully entered the French market. In the afternoon, 74 B2B meetings connected Hungarian SMEs with major French companies, while the chamber’s experts offered tailored advice on entering the French market. The forum once again confirmed that Hungarian–French economic ties are deepening, opening new business opportunities for both sides.

American Chamber of Commerce in Hungary (AmCham)

AmCham Hungary and the Budapest Marriott Hotel are once again joining forces for a good cause and warmly invite members, families, friends, and business partners to the upcoming Thanksgiving Charity Dinner, an evening dedicated to celebration and giving back. Guests will enjoy a festive buffet, children’s entertainment, a charity raffle and auction, and a variety of engaging activities. All proceeds from the evening will support children in need.

• When: Friday, Nov. 21, 6-9:30 p.m. • Where: Budapest Marriott Hotel, Apáczai Csere János u. 4, 1052 Budapest. • Fee: Members HUF 30,000 + VAT / person; non-members HUF 35,000 + VAT / person. Kids aged 6-12 years are half price, kids under 6 free. Please note that priority will be given to AmCham members and partners of the Budapest Marriott Hotel.

German–Hungarian Business Forum 2025

Shaping Our Common Future in a Changing Economy

Kölcsey Centre Debrecen

Hunyadi utca 1–3, 4026 Debrecen

Germany and Hungary are two strong industrial nations whose cooperation is rooted in centuries of shared history. Today’s economic and geopolitical challenges are testing companies worldwide. Germany, as the economic engine of Europe, is at the center of international attention particularly regarding the economic policy measures being adopted, the new strategic directions emerging, and the economic objectives being prioritized.

A key question is how these measures affect manufacturers and suppliers in Hungary, and what

Program

8:30–9:00 ARRIVAL AND REGISTRATION

9:00–9:20 WELCOME ADDRESSES

• Dr. Róbert Keszte, President, German–Hungarian Chamber of Industry and Commerce

• Dr. László Papp, Mayor of the City of Debrecen

• Julia Gross, Ambassador of Germany to Hungary

9:20–9:45 OPENING KEYNOTE

“Made in Germany 2.0 – The Engine of the Economy on a New Track” Future prospects of the German economy

• Thomas Hüne, Representative, Department of Research, Industry and Economic Policy, Federation of German Industries (BDI)

9:45–10:45 PANEL DISCUSSION I

“Industry Dialogue: Strategies of German Premium Car Manufacturers in a Changing World”

Participants:

• Michael Breme, CEO, Audi Hungaria Zrt.

• Jens Bühler, CEO, Mercedes-Benz Manufacturing Hungary Kft.

• Hans-Peter Kemser, President & CEO, BMW Manufacturing Hungary Kft.

Moderator:

• Gábor Várkonyi, Automotive Journalist

November 5, 2025

10:45–11:15 COFFEE BREAK & NETWORKING

11:15–11:50 PANEL DISCUSSION II

“Agility and Innovation: Supplier Strategies in the New Economic Environment”

Participants:

• Péter Szabó, Managing Director, Schaeffler Debrecen Kft.

• Vinzenz Graßl, CEO, Schedl Group

• András Csató, Director of Economic and Government Relations, B. Braun Medical Kft.

Moderator:

• Róbert Ésik, Partner, Ernst & Young Advisory Ltd.

11:50–12:30 PANEL DISCUSSION III

“On the Road to Growth –Success Models and Strategies of Regional Enterprises and SMEs”

Participants:

• Zoltán Kocsis, Managing Director, Krones Hungary Kft.

• Szabolcs Fülöp, Managing Director, Trans-Sped Kft.

• Tamás Schwarczenberger, Managing Director, Güntner-Tata Hűtőtechnika Kft.

• Buda Zalay, Managing Director, Körber Hungária Gépgyártó Kft.

Moderators:

• Ilona Balogh, Deputy Managing Director, DUIHK

• Csaba Juhász, Managing Director, Harro Höfliger Hungary Kft.

For registration use the QR code

strategies companies are implementing to strengthen their international competitiveness and resilience in response. The German–Hungarian Business Forum aims to address these questions. It is jointly organized by the German–Hungarian Chamber of Industry and Commerce (DUIHK) and the City of Debrecen. Leading economic experts from Hungary and Germany, major corporations, as well as small and medium-sized enterprises have been invited to the forum. As the closing highlight, we will showcase Bavaria’s successful cluster initiatives and discuss proven methods of economic development in a Hungarian–Bavarian panel discussion.

12:30–13:30 LUNCH BREAK & NETWORKING

13:30–13:50 EXPERT PRESENTATION

“A Window onto Germany: Spotlight on Bavaria” Cluster policy and innovation project management Bavarian experiences

• Heiko Bartschat, Head of Cluster and Networks Office, Bayern Innovativ GmbH

13:50–14:30 PANEL DISCUSSION IV Hungarian and German Case Studies: International Innovation Projects Participants:

• Dr. Andrea Horváth, Managing Director, Debrecen Automotive Cluster

• István Joó, CEO, HIPA Hungarian Investment Promotion Agency

• Zoltán Pécskay, Managing Director, EDC Debrecen Nonprofit Ltd.

• Dr. Markus Wittmann, Ministerial Director, Bavarian Ministry of Economic Affairs, Regional Development and Energy

Moderators:

• Barbara Zollmann, Managing Director, DUIHK

• Tünde Kis, Director, PwC Hungary

14:30–14:40 CLOSING REMARKS AND SUMMARY

14:40–15:30 NETWORKING

Language of the event: Hungarian, German and English with interpretation.