“Total investment volume could reach between EUR 700 million and EUR 800 mln this year, effectively doubling the 2024 figure,” says Balázs Zelles-Görgey, head of capital markets at Colliers.

“Still, commercial real estate investors are seeking stability, and geopolitical volatility and regional uncertainties may continue to affect transactions in the remainder of the year. It is hoped that the upward momentum will not be disrupted by the parliamentary elections scheduled for spring 2026 in Hungary. Historically, investors tend to pause and wait to see the direction of the new government during such periods,” he adds.

The sale of the Budapest Marriott Hotel was announced in June, with a consortium led by the Diorit Private Equity Fund and BDPST Group acquiring Duna Szálloda Zrt., the firm that owns the building, from CPI Europe. The Diorit fund is managed by Gránit Asset Management, itself part of BDPST. The transaction was reportedly worth EUR 115 mln.

Cushman & Wakefield and CBRE both put the total investment volume for the first half year at EUR 280 mln, representing a 55% year-on-year increase. The consultancy sees the investment market as gaining momentum with several transactions in the pipeline. The upturn in the market is primarily driven by three transactions: the purchase of the Marriott International building that is expected to close in the third quarter, and is the first transaction to exceed EUR 100 mln since 2022; the purchase of BakerStreet 1; and, in the logistics segment, the acquisition of 84,000 sqm in two HelloParks buildings.

iO Partners have similarly traced an investment market upturn with EUR 300 mln in investment activity for the half-year. This breaks down to 62% by domestic investors and 38% by international players; activity from the latter camp is rising, although the former still leads the market.

“Transactional activity in the first half of the year has already exceeded the total for all of last year. The pipeline remains strong across all asset classes, and we are on track to close 2025 with the highest annual volume in the past three years,” comments Gábor Zeller, head of capital markets at iO Partners Hungary.

Turning a Corner

Markets have clearly turned a corner, agrees Benjamin Perez-Ellischewitz, principal at Avison Young Hungary.

“We measured around EUR 5.1 billion of investment for the CEE region (the Czech Republic, Hungary, Poland, Romania and Slovakia) in the first half of 2025, and we expect to pass the EUR 11 bln level for the full year,” he tells the Budapest Business Journal.

“Hungary should offer a risk premium due to the political landscape, permanent fight with the EU institutions and the unorthodox diplomatic alignment of the country. For others, it is not a question of relative pricing; they don’t want to hear about us as long as Hungary is not normalizing its relationship with the EU. On a full 2025 basis, Hungarian volumes should get close to the EUR 750 mln-800 mln level,” Perez-Ellischewitz adds.

Across the region, the Czech Republic recorded the highest H1 CEE volume, at EUR 2.2 bln, representing a 125% rise in investment according to Gábor Borbély, head of research for CEE & Hungary at CBRE. Yields are moving in for the Czech market, with no yield compression expected for Hungary, with a yield gap of 150-170 basis points for the industrial sector between the two countries.

Zelles-Görgey of Colliers sees possibilities that the still-nascent Living sector (rental housing, student accommodation, and senior homes) will eventually develop into a standalone investment segment modelled after Western Europe. Early signs of this are already visible, with growing investor interest in the sector.

In the first half year, the most sought-after sectors were hotels, representing 37%, followed by office buildings at 32%, and industrial at 25%. It is seen as a positive sign that, according to market sources, the HelloParks deal was valued at around EUR 85 mln-90 mln, the Baker Street office transaction exceeded EUR 50 mln, and the Marriott Hotel deal surpassed EUR 110 mln.

Colliers estimates prime office yields at 6.5%, prime logistics yields at 6.75%, and shopping centers and retail parks at 7%. For hotel transactions, further market activity is needed to establish a realistic benchmark. Yields are expected to remain stable.

Signs of Stabilization

Cushman & Wakefield sees yield stabilization on the horizon, with prime office yields at 6.25% and industrial at 6.75%.

In terms of relative pricing, the premium has been stable for years at a level of 150-175 basis points compared to the Czech Republic, according to Avison Young.

“There are cautious signs of stabilization in both Hungary and the broader CEE region, but calling it a sustainable recovery might still be premature,” says Máté Szoboszlay, business development and investment director at Faedra Group. “We are seeing increased activity in certain segments, particularly industrial and residential products, but investor appetite is selective, and many are still waiting for more clarity on interest rates and global risk factors,” he adds.

The Czech Republic remains more liquid and is perceived as less volatile, so the gap is likely to persist in the short term.

“We see significantly higher volumes and a more mature investor base compared to Hungary. However, we can offer yield premiums and long-term strategic potential, especially in logistics and regional hubs. With greater transparency and more high-quality products, Hungary has the potential to narrow the gap over time,” Szoboszlay adds.

CEE investment volume in the first half of 2025 was up by 34% on the same period last year, reaching EUR 5.7 bln, according to CBRE.

“This reinforces our forecast that annual CEE investment volume should reach EUR 11.5 bln-12 bln. The outstandingly strong investment momentum of the past two quarters was noticeably broken in the second quarter due to uncertainties surrounding the future of the international trading system. The turbulence has impacted capital flows between regions negatively, but at the same time, it has hardly hindered the activities of domestic and CEE investors,” concludes CBRE’s Borbély.

This article was first published in the Budapest Business Journal print issue of September 5, 2025.