Major Budapest mall to close, new shopping centres expected

The Hungarian retail property market is undergoing significant changes, with new shopping centres opening and major renovations planned. The CBRE Hungary Market Outlook 2025 event, as reported by Portfolio, provided insights into the sector’s future, highlighting key developments in Budapest and across the country.

New malls and renovations

While large-scale shopping mall developments remain scarce, the focus has shifted towards renovations and optimising existing retail spaces, Portfolio reports. Erika Garbutt-Pál, Retail Leasing Director at CBRE, emphasised that the post-COVID period has been about portfolio optimisation rather than new constructions.

Two of the most significant projects currently underway are led by Indotek Group:

• Duna Plaza in Budapest will temporarily close next year for a major renovation and expansion, reopening in 2028 with a total area of 50,000 square meters.
• Alba Plaza, following a similar timeline, will also reopen in 2028 after extensive redevelopment.

Additionally, after years of planning, the Fórum Debrecen project is also progressing. Meanwhile, Budapest will see the opening of a brand-new shopping mall this year. Zenit Corso, an 11,000-square-meter retail centre in Zugló, is set to welcome visitors in October.

Retail growth and emerging brands

The Hungarian retail sector saw substantial expansion last year, with 160 new retail units opening—20% of which were restaurants and cafés. New brands are continuously entering the market, including Primark, Koton, Orsay, and Luxoya. Currently, around 28,000 square meters of retail parks are under construction across Hungary, made up of several smaller retail developments.

Optimism in the investment market

CBRE experts predict that Hungary’s commercial real estate market will stabilise and grow steadily by 2025. Economic growth is expected to be around 2-2.5% this year, supported by a more predictable global investment environment following key elections worldwide.

Investment confidence is on the rise:

• 90% of investors plan to invest at least as much as last year, if not more.
• A 15-20% increase in investment volumes is expected compared to 2024.
• The residential sector is predicted to lead investments in Europe (32%), followed by logistics (27%) and office spaces (16%).

In Hungary, however, the real estate market is still catching up to regional leaders like Poland and the Czech Republic. While Poland recorded EUR 2 billion in transactions in the last quarter alone, Hungary’s total transaction volume for 2023 was the lowest in 15 years. However, experts anticipate a recovery, with transactions reaching EUR 700-800 million in 2025.