Below, you can read the interview with Álmos Mikesy, Chairman and CEO of Gránit Asset Management, on the outlook for Hungary’s real estate market, the most active sectors in 2026, and the impact of current geopolitical developments.
What sort of impact do you expect the formation of a new government to have on Hungary’s real estate market?
The conclusion of the general election has introduced a tangible shift in market dynamics. The formation of the new government has brought a greater sense of political stability and predictability, which is typically welcomed by macro investors. This post-election stabilization and the emerging fiscal framework have supported overall market sentiment and contributed to a reassessment of Hungary’s sovereign risk. Against this backdrop, we are beginning to see a gradual compression in yields, which naturally supports and helps preserve underlying asset values across major sectors.
Furthermore, a stabilizing interest-rate environment and a predictable economic policy framework are expected gradually to unlock both domestic and international institutional capital. Because the Hungarian real estate market remains noticeably undervalued relative to several regional peers, this period of macroeconomic consolidation provides a solid foundation for long-term capital inflows.
We anticipate a strategic evolution in economic policy that, while maintaining its industrial foundations, will increasingly support high-value-added services and the technology sector. This structural shift has the potential to generate steady, renewed demand for modern corporate office space.
At the same time, a highly anticipated review or modification of the long-standing “plaza stop” regulation could pave the way for structured development opportunities and new investments in the retail sector. While property prices remain high, the market is moving toward a healthier equilibrium defined by transparency and long-term institutional commitment rather than speculative volatility.
Although the logistics segment may experience a temporary consolidation phase while the large volume of previously delivered space is absorbed, the overall real estate environment points toward a more active and liquid investment market.
Which real estate project that you have worked on are you most proud of, and which competitor project do you most admire?
We firmly believe that sustaining long-term market competitiveness requires a continuous commitment to asset renewal and forward-looking value creation. This philosophy is embodied in the modernization of our iconic Alkotás Point office building. We carried out a comprehensive, high-end transformation of the main lobby, turning it into a vibrant, community-focused hub that meets the evolving expectations of the modern workforce.
This project is fully aligned with our overarching “5B Strategy,” which focuses on building a premium office portfolio across five key regional capitals: Budapest, Belgrade, Bucharest, Bratislava, and Vienna (Bécs in Hungarian).
In line with the strategy’s emphasis on building excellence, brownfield optimization, and sustainability, the Alkotás Point renovation placed a strong emphasis on energy efficiency. We replaced outdated heating, cooling, and heat-generation systems, installed state-of-the-art energy-efficient pumps, retrofitted the public areas with LED lighting, and revitalized the surrounding green urban spaces.
While we take immense pride in the optimization of our domestic assets, our proudest regional milestone remains the landmark international acquisition of the Equilibrium 1 and 2 office buildings in Bucharest. The transaction won the prestigious “Investment Deal of the Year” award at the SEE Real Estate Awards. This recognition demonstrated our ability to execute complex cross-border transactions successfully within our target geographical footprint.
Looking at the broader market, rather than viewing outstanding peer projects with envy, I regard them with great professional respect. I particularly admire large-scale, visionary mixed-use urban developments that successfully blend Budapest’s historic architecture with smart-city technology and open community spaces. Such projects set a benchmark for sustainable urban density and inspire the entire Hungarian real estate community to raise its standards.
What effects do the conflict involving Iran, the disruption of shipping through the Strait of Hormuz, and the ongoing war in Ukraine have on Hungary’s real estate sector?
Editor’s note: The geopolitical references in this answer have been updated to reflect developments as of July 16, 2026.
As a highly open economy, Hungary’s real estate sector is naturally sensitive to compounding geopolitical crises.
The escalation involving Iran and the continued disruption of shipping through the Strait of Hormuz remain key factors affecting global energy-supply security. The interim U.S.–Iran arrangement reached in June has largely unraveled, while renewed American strikes and Iranian retaliatory attacks have intensified regional uncertainty. Shipping through the strait remains severely disrupted, and the risk of further escalation continues to influence energy prices and investor sentiment.
Because Hungary imports a substantial proportion of its energy, any sustained increase in global energy prices places upward pressure on household energy expenditure and commercial real estate operating costs. It also contributes to inflation across construction supply chains, forcing developers to contend with volatile material prices and the risk of project delays.
At the same time, the prolonged war in neighboring Ukraine continues to generate geopolitical caution across the broader Central and Eastern European region. During the initial phase of the war, the influx of refugees caused a temporary increase in residential rental demand. Over time, however, its primary effect on the real estate market has shifted toward investor sentiment.
Persistent inflationary risks may require central banks to maintain tighter monetary conditions, which would naturally weigh on highly leveraged investment models. The renewed escalation in the Middle East means that severe scenarios cannot be dismissed. At the same time, central banks must balance the risk of higher inflation against the fragility of European economic growth.
In June, the European Central Bank raised all three of its key interest rates by 25 basis points, taking the deposit facility rate to 2.25 percent. The decision reflected the increased inflationary risks associated with the war in the Middle East and rising energy prices.
Gránit Asset Management has already completed the key asset repricing measures and portfolio adjustments prompted by the COVID-19 pandemic and the subsequent energy crisis. While secondary office assets remain exposed to downward valuation pressure due to stricter energy-performance requirements and changing tenant expectations, premium and resilient real estate assets can continue to serve as tangible and relatively stable components of institutional investment portfolios during periods of global macroeconomic volatility.
Which are the most active real estate sectors in 2026, and why?
In 2026, Hungary’s real estate market is characterized by significant sector-specific realignments. The residential market continues to show strong activity. Although the rapid price growth of previous years has moderated toward a more sustainable trajectory, demand remains substantial, supported by improving financing conditions and government housing programmes. At the same time, the increase in building permits and the expected expansion in new housing completions point to stronger residential development activity over the remainder of the year.
The retail property sector has also emerged as one of the most active segments in terms of investment transactions. Investor interest has strengthened amid resilient consumer demand and expectations of possible regulatory easing. Gránit Asset Management has been particularly active in this segment, recently completing the landmark acquisition of the former Park Center portfolio, comprising eight retail parks and four standalone stores in strategically important regional locations. We continue to see strong, unmet tenant and investor demand in this segment.
Conversely, the logistics and industrial sectors are transitioning from a period of rapid expansion into a necessary phase of consolidation as the market absorbs recently delivered supply. Meanwhile, the office market is experiencing a significant flight-to-quality trend. While older, unmodernized assets require targeted, capital-intensive investment to remain competitive, the prime office segment is seeing renewed investor interest and transaction activity. As a result, retail and premium office assets are positioned among the key areas of market activity in 2026.
