Hungary Market Outlook 2021
The baseline scenario counts with a GDP growth of 3-4% in 2021, accelerating to 4-5% in 2022. A more optimistic scenario is based on GDP growth around 5-6% this year and also in 2022.
The outlook for 2021 is generally positive, as several ongoing transactions are expected to provide reassurance on the market in the early half of the year.
The elevated new supply and fledgling demand during the year raised the average vacancy rate in Budapest to 9.1% as of Q4 2020, up by 3.5 p.p. from the all-time record low level a year earlier.
Last year also saw the structure of demand shift back in favour of take-up, which increased by 81% y/y, pressing the share of renewals to the lowest level since 2013.
Retail rental levels had already peaked before the pandemic; however, the decline has been accelerated by the dire business environment of 2020.