globe retail outlook data

 

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Hungary

After years of stagnation in the wake of the economic crisis, retail sales took a turn and started expanding buoyantly from late 2013. The past three years have seen retail sales grow by around 5% y-o-y. Based on supportive government policy (eg. tax cuts, utility price regulation) and rising wages, this trend is expected to continue in 2017. Meanwhile, there have been no new completions on the market since early 2013. The only completion set for 2017 is a new IKEA outlet in the southern outskirts of Pest, followed by a 9,000 sq m strip mall development in the same area next year and a 14,500 sq m strip mall in the northern suburbs of the capital. The next shopping centre completion is expected in late 2019, as Futureal's 53,000 sq m Etele Plaza project is likely to kick off in H2 2017. The lack of new supply has created good momentum for existing centres when competing for new tenants and consumers. Andrássy út - a key high street area - has also considerably decreased its vacancy in recent years, accommodating a number of new luxury retailers. Several fashion brands still achieve their best CEE regional turnover results in their Budapest shops, despite the general negative international image of Hungary. Budapest's appeal has been further strengthened by a series of urban renewal schemes, which have created additional public spaces and pedestrianised some key high street environments, thereby further expanding the prime retail footprint. Tourism has also seen a strong revival, with high single-digit annual guest arrival growth during the past two years. Retail turnover levels outside Budapest are still far below those achieved in the capital. Most regional cities have strong and distinct pedestrian downtown shopping areas, although these are not yet widely populated with branded retail concepts but rather by cafés and restaurants and local retailers. Once high street ownership issues outside Budapest become more clarified and buildings are refurbished, these high street areas should become more of a focal point for stronger national and international brands.

Our Top Tip For
New Arrivals

Increasing tourism has brought renewed energy to the high streets of Budapest and several stronger regional city centres and is acting as a catalyst to investors to invest in the redevelopment of numerous long awaited projects that will continue to strengthen these areas, especially Váci Street and Andrássy Boulevard, offering interesting opportunities to new market entrants. Stronger local spending has brought significant improvements in footfall and turnovers in most Budapest shopping centres.

Currency

Hungarian Forint (HUF)
EUR €
USD $
GBP £

Language

Hungarian
Hello: Szia
Thank you: Köszönöm

International Dialing Code

+36

Time Zone

GMT+1

Cost of a Pair of Jeans

80.00 HUF

Cost of a Cup of Coffee

1.80 HUF

Cities in Hungary

Contact Us

ANITA CSÖRGO
Bajcsy-Zsilinszky út 78.
+3670 310 0547 | Anita.Csorgo@cbre.com