H1 2017 saw one large format retail completion, in the form of a new IKEA store on 33,500 sq m in southern Pest.

The pipeline for shopping centres and retail parks remains dry until 2019. There is now one strip mall development under planning in North Buda, expected to be handed over no sooner than 2019. The next shopping centre completion is expected earliest in Q4 2019, with the opening of Etele Plaza.

In H1 2017, retail sales grew by 4% y-o-y, maintaining robust momentum despite slowing somewhat from the high basis of the preceding year. Non-food sales remained the main driver, expanding by 6.6%.

Rents have continued to increase across all asset types, particularly at the higher end of typical rent ranges. Meanwhile, yields levels have compressed further in the capital and the prime yield for shopping centres and high street units is now quoted at 6.00% and 5.75%, respectively, while strong secondary centres can dip below 8%.