BBJ_3307

Some Signs of Cooling, but Sector Still Booming Industrial and Logistics

The industrial and logistics sector continues to boom, with leading regional and Hungarian players active. The market has grown on the back of increasing demand for space to meet significant FDI, notably in the electric vehicle and EV-related industries.  15

Industrial/Logistics Developments

Target Sustainability

Responding to market demands and EU Taxonomy requirements, developers and park operators are building more highly specified complexes. A critical new ESG requirement for tenants is the need for ESG data for reporting purposes.  16

District VII Street Art: Walls Come to Life

No matter how many times he strolls around Budapest’s Jewish Quarter, District VII, it seems a mural David Holzer has never spotted before catches his eye.

According to Attila Höfle, founder of Budapestflow Walking Tours, the Seventh is the best place to see murals and street art in the city.  25

Engaging With Communities

Macroeconomic Outlook Revised for the Worse

Róbert Keszte, head of global operations at Continental and winner of the CEO Community Award 2025, tells his CEO peers to get involved, for the betterment of their people and organizations. Full CEO Gala roundup inside.  6 -10

The central bank has completely revised its economic forecasts for this year. Persistently high inflation and lower-than-expected economic growth are now expected for 2025. The base rate may, therefore, remain at its current level for a longer period.  3

 11

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

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THE EDITOR SAYS

IN PRAISE OF SPREADING THE GROWTH AROUND

The industrial and logistics sector continues to be one of the better performing real estate areas, driven (if you will pardon the pun) by high levels of foreign direct investment around the automotive and electric vehicle battery manufacturing. Even here, there is some cooling in enthusiasm, doubtless not helped by Germany’s moribund economy and disappointing EV sales. That is, presumably, a temporary blip. The direction of travel for the automakers based here (Audi, Mercedes and Suzuki, to be joined this year by BMW and BYD) is clearly away from the conventional internal combustion engine toward electric powertrains. That is also true from the one name missing from that list, Stellantis, which announced in 2024 that it would invest a not insubstantial EUR 103 million at its Szentgotthárd factory to add production of electric drive modules, targeted to begin in late 2026.

The plant once produced the Opel Astra, car, but has been involved with engine manufacturing for three decades, and currently builds 1.2-liter turbocharged three-cylinder and 1.6-liter four-cylinder internal combustion engines. In a demonstration of how new technologies require lifelong learning in the workforce, Stellantis employees are undergoing upskilling to support the machining and assembly of EDMs. There is a Hungarian expression that roughly translates as needing to stand on more than one leg. The Viktor Orbán-led governments have long talked publicly about the need to avoid over-concentration in one area. While there are legitimate questions to be asked about whether too many eggs are being placed in the automotive/e-mobility basket, the manufacturers listed above are at least a good example of creating

growth centers away from Budapest. In Győr, Kecskemét, and Esztergom, the carmakers have been a magnet for Tier 1 and Tier 2 component suppliers, who in turn need industrial bases. The same process is happening in Debrecen, in the east of the country, and in Szeged, in the south, where the news of BYD’s arrival prompted home prices to rise and demand for yet more industrial and logistics space. You can read more about that in this week’s Special Report, which is dedicated to the sector.

From my occasional perch up on the stage, concentrating furiously on whatever it is I am meant to be saying next, it’s quite hard to get a big picture overview of the CEO Gala, which we held for the 11th time on March 21. What I do get a better sense of is the flow of the evening, punctuated as it is by yet another course missed between trips to and from the podium, introducing someone here, hosting an audience participation quiz there. Anyway, this year’s event seemed to flow seamlessly. Certainly, the feedback I was picking up in the Grand Ballroom Lounge afterwards was that this was one of our better galas. Congratulations, yet again, go to our two winners, Ana Maria Vargas of J&J Innovative Medicine (Expat CEO 2025) and Róbert Keszte of Continental (CEO Community Award), and their respective runners up, any one of whom would have been a worthy winner. You will find a full two-page report and three pages of photos inside this issue.

Robin Marshall Editor-in-chief

THEN & NOW

In the 1930 black and white photo from the Fortepan public archive, taken in Balatonszemes (134 km southwest of Budapest by road, on the southern shore of Lake Balaton), the passenger boat Szigliget waits at the dock, ready for travelers to board, capturing a tranquil moment from early 20th-century water transport. In the modern image from March 28, 2025, the passenger boat Tomaj is seen at the Fonyód port on the opening day of the new boating season.

Photo from Fortepan / Hungarian Museum of Science, Technology and Transport / Bahart Archive

Photo by Tamás Vasvári / MTI

1News • macroscope

Macroeconomic Outlook Revised for the Worse

The National Bank of Hungary (MNB) has completely revised its economic forecasts for this year. Persistently high inflation and lower-than-expected economic growth are now expected for 2025. The MNB’s base rate may, therefore, remain at its current level for a longer period.

Industrial Producer Price Index in Hungary 2003-2025 (Jan.-Feb.)

The Monetary Council of the MNB kept interest rates unchanged at 6.5% at its rate-setting meeting on March 26, the first to be headed by new governor Mihály Varga, who projected a permanently high interest rate level as the inflation outlook deteriorated. According to the MNB’s forecast, inflation will be higher this year than previously expected, while economic growth is predicted to be slower. Analysts believe that the interest rate may decrease towards the end of the year, but with high inflation remaining in circulation, there is no guarantee of this. The decision by the Monetary Council marks the sixth consecutive time that the central bank has kept the key rate unchanged; the last time the council made a cut was in September

The council, led by the new governor, found it had to make its interest rate decision in a difficult economic situation. Perhaps the most critical development was that inflation increased significantly at the beginning of the year. It is now clear that 2025’s likely inflation path is much higher than the central bank had expected at the end of December. Several factors, such as the rise in raw material prices, the significant weakening of the forint at the end of last year, and wage dynamics, have triggered inflation’s acceleration. These have combined to move Hungary back to the top of an

Source: January–February

unwanted podium among the leading EU member states in the generally strengthening European inflation trend.

Significant Changes

Following the rate decision, the central bank released its latest quarterly Inflation Report on March 27. The fresh version includes significant changes in key indicators. Most importantly, the report states that this year’s annual inflation rate could be 4.5% in the best case but 5.1% in the worst.

As for economic growth, the MNB now thinks that GDP could grow by 2.9% in the most optimistic calculation but only 1.9% in the worst case. Average earnings could increase between 9.5% and 10.3%, which, adjusted for inflation, means that real income will grow between 2.9% and 3.7%. According to the forecast, employment will stagnate in the best-case scenario or a 0.4% decrease in the worst. The general government deficit will be somewhere between 3.5% and 4.3% of GDP.

Core inflation, excluding indirect tax effects and which captures underlying inflation processes, is projected to range between 4.8% and 5.3% in 2025, 3.2% and 3.9% in 2026,

and 2.6% and 3.2% in 2027, the report says.

“Regarding this year’s core inflation excluding indirect tax effects, we raised the midpoint of the forecast range by 1.6 percentage points relative to our

December forecast. Core inflation will fall to around 5% by April and may remain at a similar level for most of the year. Underlying trends may decelerate substantially again from the beginning of 2026, supporting the achievement of the inflation target,” the MNB notes.

The government’s introduction of a compulsory cap on the margin of food retail traders might help, but inflation is still expected to remain high for a long time. Its official target is that inflation operates within a 2-4% band. The MNB estimates that limiting food margins will reduce inflation by 0.8 percentage points in April and May.

Conclude With Caution

A very short time has passed since the cap was introduced, so conclusions can only be drawn with caution; analysis has shown that in the first two days of the new rule, the prices of the affected products decreased by an average of 14.6% compared to the previous week. It is important to note that this is an average decrease: yogurt and margarine, for example, became 30% cheaper in these two days; however, other products became slightly more expensive within the same period.

The Inflation Report shows that the MNB now sees 2025 as worse in almost every respect than the government had assumed when planning this year’s budget in late 2024. In a twist of timing, the budget was written and submitted by the nowdisbanded Finance Ministry, headed by

Mihály Varga as minister. In preparing the 2025 budget, the government calculated with an inflation rate of 3.2%, expected that GDP could grow by

3.4%

and that the deficit would be 3.7%.

The main numbers of the latest Inflation Report were revised downwards compared to the December forecast, prepared when Varga’s predecessor, György Matolcsy, was still governor. Then, the MNB expected inflation of 3.3-4.1% and GDP growth of 2.6-3.6%. Notably, these numbers had already been lowered from the projections in the September 2024 report.

The Monetary Council highlighted four alternative risk scenarios around the baseline projection in the March Inflation Report. The risk scenarios featuring rising trade tensions and a deterioration in emerging market sentiment are consistent with higher inflation and a lower growth path. The scenario that assumes the easing of geopolitical tensions is consistent with stronger economic growth and lower inflation than the baseline.

In the scenario envisioning a fiscal stimulus in Europe, both the growth and inflation paths might be higher.

In addition to the highlighted scenarios, the council discussed alternative scenarios with persistently high inflation expectations, faster investment growth and a faster improvement in productivity, the Inflation Report states.

ZSÓFIA CZIFRA

Hungary Proceeds With Ukraine Referendum Roundup Crisis

Hungary has brought the pipeline delivering Russian gas to Slovakia to full capacity, Minister of Foreign Affairs and Trade Péter Szijjártó announced during a press conference after meeting with the deputy speaker of Slovakia’s National Council, Peter Žiga, in the border town of Komárom (95 km northwest of Budapest) on April 1.

“We managed to solve the problem of natural gas supplies to Slovakia and Hungary, despite the fact that Ukraine created very serious difficulties for us,” Szijjártó said at the press conference broadcast by news channel M1.

On Jan. 1, Ukraine halted the transport of Russian gas through its territory via pipeline after signaling for months that it would refuse to renew a deal that had allowed the transit until then. This created hardships for countries still dependent on Russian gas, such as Hungary and especially Slovakia, which used the gas domestically and earned transit fees by facilitating onward supply to Austria.

“To ensure reliable gas supplies to Slovakia via Hungary even with the cessation of its transit through Ukraine, we had to increase the capacity of the connecting gas pipeline between our countries,”

Szijjártó continued. Accordingly, the capacity was raised by 900 million cubic meters from 2.6 billion cubic meters to 3.5 bcm.

On March 31, Vojtech Ferencz, CEO of Slovakia’s state-owned energy supplier SPP, told reporters that Russia’s Gazprom would significantly escalate natural gas deliveries to Slovakia through the TurkStream pipeline starting in April. Although initial projections suggested the volume would merely double in April, Ferencz noted that additional pipeline capacity would enable a throughput several times greater than what had been supplied over the past two months.

After Ukraine stopped gas transit in January, Gazprom resumed supplies to Slovakia in early February, utilizing volumes previously allocated to Hungary via the TurkStream pipeline, according to SPP. Compared to last year’s record, the volume of natural gas transported through Hungary to Slovakia had increased by 50% between January and March.

Meanwhile, the Hungarian government is proceeding with its plans to hold a referendum on Ukraine’s accession to the European Union. State Secretary Balázs Hidvéghi, who is in the Prime Minister’s Cabinet Office, said in a video posted on the government’s Facebook page on March 29 that delivery of the “national consultation” on Ukraine’s EU membership would start soon.

State Secretary Balázs Hidvéghi of the Prime Minister’s Office speaking at the “Sovereignty and Freedom” event organized by the Hungarian National Media Association and the Center for Fundamental Rights in Budapest on March 28.

Agreement Praised

On March 26, Szijjártó praised an agreement between the United States and Russia to prohibit attacks on infrastructure supplying energy to Hungary after meetings in Moscow with Russian Deputy Prime Ministers Alexander Novak and Denis Manturov, presidential aide Yuri Ushakov, and Sports Minister Mikhail Degtyarev.

According to Hidvéghi, the ballot paper will have a single question: “Do you support Ukraine becoming a member of the European Union? YES/NO.” However, the package will also summarize critical aspects and risks of Ukraine’s accession, which Hidvéghi advised voters to consider carefully before deciding.

Hidvéghi clarified that these will prominently feature risks that Ukraine’s EU accession poses to Hungary. These include financial challenges, such as Hungary having to become a net contributor and the prospect of joint borrowing to facilitate Ukraine’s accelerated accession, as well as agricultural risks, like Hungarian farmers losing their area-based subsidies, as EU funding would instead go to Ukraine’s farm sector.

However, Yevheniia Kravchuk, deputy chair of the Ukrainian Parliament’s Committee on Humanitarian and Information Policy, believes that Hungary’s referendum seems more like an attempt to divert its voters’ attention from domestic economic issues.

Surprising Twist in CBAM Story: Simpler Rules on

Even though the interim period of the mechanism to offset the carbon intensity of import goods, popularly referred to as the carbon tariff (CBAM), was launched barely 18 months ago, the system is already facing extensive changes. According to a European Commission proposal, approximately 90% of EU importers would be exempted from their obligations while the scope of the rules would continue to apply to 99% of emissions.

At the end of February, the EC passed a new proposal package, referred to as Omnibus, to simplify EU rules, boost competitiveness, and unlock additional investment capacity. The main objective is “to deliver an unprecedented simplification effort by achieving at least 25% reduction in administrative burdens, and at least 35% for SMEs, until the end of this mandate.” A significant part of the package is the substantial amendment to the rules on the CBAM. The interim period for introducing carbon tariff regulations started on Oct. 1, 2023. Since then, it has become clear that the administrative burden

on importers from compliance with CBAM obligations significantly exceeds the environmental and regulatory advantages. The test period, lasting until the end of 2025, is there to identify precisely such design errors and teething problems, allowing time to make any necessary corrections.

The EC’s simplification plan is based on the finding that the largest importers are responsible for the vast majority of CO2 emissions in the form of embedded emissions. There is, therefore, no need to impose these obligations on all parties.

Under the package of proposals, smaller importers will be exempt from the administration, reporting, and purchasing quota obligations specified

by the CBAM. This includes economic actors that import small quantities of goods and products subject to the mechanism into the EU, meaning their import activities result in only negligible amounts of embedded emissions.

Insignificant Threshold

An insignificant threshold of 50 tonnes would be introduced for exemption, equal to an average CO2 equivalent of 80 tonnes. Those importers whose annual imports

the Way?

of goods and products affected do not exceed this threshold would be exempted: CBAM obligations would be eliminated for approximately 182,000 or 90% of importers while still covering more than 99% of emissions.

The adopted package of proposals contains essential elements for those importers not exempted. Among other things, compliance with reporting requirements would be easier, and the authorization process would be simplified.

The method for determining default values in cases where no reliable data is available in the exporting country will also become simpler. In this case, the default value will be the average emissions intensity of the 10 exporting countries with the largest emissions for which reliable data is available.

The package of proposals even provides sufficient time for the companies in question to prepare for compliance. The sale of CBAM certificates for emissions embedded in goods imported in 2026 would start a year later than planned, in 2027. The cost of the certificates purchased in 2027 will also reflect the 2026 prices of EU ETS emissions units.

NICHOLAS PONGRATZ

Ukraine

Kitti Vizler, manager of Andersen Adótanácsadó Zrt.

KITTI VIZLER

Photo by Zoltán Máthé / MTI

Industrial Tenantsʼ Demands Becoming More Sophisticated

According to the tenant representatives and consultants, Newmark VLK Hungary, Hungary’s industrial and logistics market is increasingly driven by client specifications.

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Real Estate Matters

A biweekly look at real estate issues in Hungary and the region

“Current and future demand plays a crucial role in shaping the balance between speculative and build-tosuit developments,” comments Valter Kalaus, managing partner of Newmark VLK Hungary, a well-known figure in the real estate scene.

“As tenant requirements become more specific, BTS projects gain traction, particularly for large-scale logistics operations. However, a relative lack of modern stock in certain areas and strong demand for immediate occupancy keeps speculative development relevant. Developers must balance risk and flexibility to remain competitive,” Kalaus argues.

“A well-equipped logistics or industrial park must provide excellent transport links, sustainable infrastructure, scalable spaces, and modern amenities. Increasingly, developers are incorporating ESG-compliant features, green energy solutions, and smart technology to meet evolving tenant expectations,” he adds.

Logistics tenants prioritize large, highbay warehouses with efficient loading and automation capabilities, while industrial users require more specialized facilities with advanced utilities, production areas, and workforce access.

Growing trends include sustainability, energy efficiency, and more flexible leasing structures. A well-equipped logistics or industrial park must provide excellent transport links, sustainable infrastructure, scalable spaces, and modern amenities. Increasingly, developers are incorporating ESGcompliant features, green energy solutions, and innovative technology to meet evolving tenant expectations. Regarding differentiation within the sector, logistics projects focus on scalability, quick adaptability, and automation-friendly design; industrial developments often require more tailored solutions, such as built-in production capabilities and specialized utilities. Both must incorporate ESG compliance and smart technologies to remain future-proof. As ever, location still plays a critical role in both segments.

Urban industrial facilities are also gaining popularity, driven by lastmile delivery needs, the growth of e-commerce, and the push for sustainable logistics solutions. However, high land costs and zoning restrictions pose challenges.

Primary Hub

Greater Budapest is seen as the primary hub for logistics due to its superior infrastructure, workforce

availability, and proximity to consumers. However, countryside hubs are gaining importance, driven by lower transaction costs, government incentives, and demand from manufacturing sectors. The two markets differ in size, availability, and infrastructure readiness.

Notable industrial successes in provincial hubs include Audi in Győr, Mercedes in Kecskemét and, more recently, BMW in Debrecen and BYD in Szeged.

ESG considerations are becoming critical, according to Valter Kalaus, with tenants seeking energy-efficient buildings to reduce operational costs and meet corporate sustainability goals. EU Taxonomy compliance influences design choices, pushing for carbon neutrality, renewable energy integration, and sustainable materials.

Industrial parks are thus evolving into high-tech, self-sufficient hubs featuring renewable energy sources,

Front Line Establishes Distribution Center at CTPark Budapest West

Front Line Hungary has launched operations at its new 1,500 sqm distribution center at CTPark Budapest West. Founded in the Czech Republic in 1997, Front Line is one of the leading distributors of ingredients for Mexican and American cuisine in CEE. The center will support the expansion of its e-commerce business in Hungary.

GARY J. MORRELL

Front Line chose its new facility for its efficient space, customized to support its food distribution business, including warehousing with two docking gates with a capacity of six tonnes each. The custom fit-out also includes offices for Front Line’s local operations, according to Ferenc Gondi, managing director of CTP in Hungary.

CTPark Budapest West’s location on the M1 motorway in Biatorbágy, close to the junction with the M0 ring road, was also a deciding factor for Front Line, he adds.

As part of CTP’s commitment to sustainability and helping clients meet their ESG targets, Front Line’s new

facilities were recently modernized with green technologies, including an energyefficient heat pump system for cooling and heating, LED lighting, and a new fire protection and hot water system.

“It is a huge milestone for our company’s activities in Hungary that we have taken possession of modern, state-of-the-art facilities in Biatorbágy, as we have big goals for the future,” said Péter Szabados, regional head of Front Line Hungary. “We are thinking about continuous expansion, for which we require a modern warehousing and logistics infrastructure, and this is available at CTPark Budapest West. Our distribution activities are now carried out under considerably more

smart logistics solutions, and greater integration with local economies. Demand for mixed-use parks combining logistics, production, and office components is increasing. A growing trend is for landlords and tenants to share ESG-related costs.

“While landlords invest in core infrastructure, tenants contribute through operational upgrades and energy-efficient technologies. Lease agreements are adapting to reflect these shared responsibilities. Further, financing remains accessible but is becoming more selective, with lenders prioritizing ESG-compliant, welllocated projects with strong preleasing agreements. Rising interest rates and economic uncertainty may limit speculative development financing,” Kalaus notes.

“The industrial sector remains an attractive investment opportunity, driven by strong demand and limited supply. Key challenges include rising construction costs, land scarcity, financing constraints, and regulatory complexities,” he says.

“Addressing these issues will be crucial for sustainable market growth. While Hungary’s industrial real estate sector has improved significantly, there is still a gap compared to Western Europe, particularly in automation, sustainability, and infrastructure. However, new developments are rapidly closing this gap, aligning with EU standards and investor expectations,” he concludes.

Editor’s Note: For plenty more on the industrial and logistics sector, do not miss the Special Report within this print issue of the Budapest Business Journal (see pages 9-24).

professional conditions, which is important because time, product quality, and reliability are the most important factors in e-commerce,” he adds.

CTP says it has around 1.2 million sqm of industrial and logistics space in Hungary, with 127,000 sqm under construction and a landbank of 2.8 million sqm. Across the CEE region the industrial developer has 13.3 million sqm of space in 10 countries. CTPark Budapest West has 300,000 sqm of space on a 91-hectare site. It is the largest CTP park in Hungary and the 6th largest in the CTP network. The firm develops on a core and shell basis, enabling rapid delivery to longterm tenants. All parks have at least Breeam “Very Good” accreditation and energy performance certifications). According to the developer, CTPark Budapest West is home to Hungary’s first Breeam “Excellent” In-Use accredited building. The complex includes solar panels, electric chargers, bike paths, shops, restaurants and landscaped areas.

GARY J. MORRELL

Valter Kalaus, managing partner of Newmark VLK Hungary

Ana Maria Vargas Named Expat CEO 2025

The country director of J&J Innovative Medicine Hungary, Ana Maria Vargas, took home the Expat CEO Award 2025 at the Budapest Business Journal’s 11th annual CEO Gala, held on March 21 in the Grand Ballroom of the Corinthia Hotel Budapest. The CEO Community Award this year went to Róbert Keszte, head of global operations at Continental.

providing information to expat CEOs working and living in Hungary. It was only natural that we should found an award to recognize their efforts annually,” explains Balázs Román, the CEO of the Budapest Business Journal

This year’s gala shattered all previous attendance records, with more than 220 guests in attendance. The country’s most prominent business leaders, both domestic and international, along with diplomats and investors, were welcomed with a glass of champagne before taking their time to greet old acquaintances.

The prestigious Expat CEO award recognizes the foreign company boss living and working in Hungary who is deemed to have made the most significant contribution to the country’s economic development and international reputation in the past year.

“The BBJ is Hungary’s only Englishlanguage economic bi-weekly, and we have always played a key role in

Many also enjoyed the delicacies showcased by the event’s partners in the lounge area or admired the contemporary painting exhibition displayed in the foyer.

Event host Robin Marshall, editorin-chief of the Budapest Business Journal , has always joked that the most challenging part of the evening is encouraging guests into the Grand Ballroom to get the formal part of the gala started.

Hall of Fame: Expat CEO Award Past Winners

The award was won for the first time in 2015 by Javier González Pareja (then CEO of Bosch Magyarország); in 2016, the winner was Joost Lammers of Budapest Airport. In 2017, it was Joerg Bauer, then President of GE Hungary. In 2018 it was Marc de Bastos Eckstein, of Thyssenkrupp Components Hungary Kft. The year 2019 was a landmark that saw the first woman winner, Taira-Julia Lammi, then country managing director of ABB Kft. She was followed in 2020 by Melanie Seymour, head of Blackrock Budapest from 20172019. Erik Slooten, then CEO of Deutsche Telekom IT Solutions Hungary, won in 2021. He was followed in 2022 by Giacomo Pedranzini, CEO of Kometa 99 Zrt. Czech citizen Veronika Spanarova, managing director and country head for Hungary of Citi, became the first winner from the Central and Eastern European region in 2024. In 2024, Chresten Bruun, senior vice president of EMEA Manufacturing in the Lego Group, took home the award.

Following Szép-Tüske’s speech, guests were treated to a captivating performance by the Csillagszemű Dance Ensemble. Renowned for their vibrant interpretations of Hungarian folk traditions, the award-winning group brought youthful energy and artistic precision to the stage.

Their dynamic choreography and colorful costumes offered a stirring tribute to Hungary’s rich cultural heritage, earning enthusiastic applause from the audience and adding a festive spirit to the evening’s celebrations.

As guests continued to enjoy their warm appetizers, the evening took a playful turn with a lively audience quiz designed to test attendees’ knowledge of Hungarian history and culture. The quiz rewarded both speed and accuracy, encouraging some friendly competition among the guests as a player with the nickname of Zoltán clinched first place, winning a special prize of a Lego Botanicals Collection floral display to build and admire, which was handed over at the end of the gala.

CEO Community Winner

As in previous years, the Expat CEO award was decided by a fivemember professional jury shortly before the start of the gala. This year’s decisionmakers included Írisz Lippai-Nagy, CEO of the Hungarian-American Chamber of Commerce (who has been involved since the first award in 2015); András Sávos, president of the German-Hungarian Chamber of Industry and Commerce; Rita Szép-Tüske , deputy CEO of the Hungarian Investment Promotion Agency; and the BBJ ’s Balázs Román . As is traditional, the previous year’s winner completed the panel, meaning Chresten Bruun , senior vice president of EMEA Manufacturing in the Lego Group, had an active role in selecting his successor.

Celebration and Recognition

At the opening of the gala, Marshall welcomed attendees, setting the stage for an evening of celebration and recognition. Hipa’s Szép-Tüske addressed the audience, thanking the expat business community, which continues to play a significant role in shaping Hungary’s economic landscape.

“We are living in a time of relentless transformation,” she said, emphasizing the importance of adaptability as a key quality in business today. “In this environment, the ability to adapt is not just an advantage; it’s a ‘must.’ As expat CEOs, you have already demonstrated adaptability on a personal level. You have improved your lives, you learned new languages, new customs, and you have earned trust in communities where you might have started as an outsider. Therefore, you surely know why adaptability matters so much,” Szép-Tüske noted.

She highlighted Hungary as a meeting point where West and East can cooperate, which is the cornerstone of the Hungarian economy’s adaptability.

Next on the agenda was a prize that honors those who go above and beyond their day job in encouraging and developing togetherness in the workplace and further afield.

“We come to the first prize award of the evening, the CEO Community Award. We are presenting this award for the third time tonight and are grateful for the input of various bilateral chambers of commerce in the process of selecting candidates in addition to our official partner for this award, the Hungarian Business Leaders Forum,” Marshall noted.

The award recognizes a business leader who plays a decisive communitybuilding role, serves as a positive role model, and has a meaningful social and economic impact in Hungary. Candidates must be successful in national and international markets, demonstrate outstanding commitment as representatives of their company in Hungary, and influence issues with broader social relevance

The jury for this category comprised country chair and president of the board of Shell Hungary Andrea Solti Istenes, who became the inaugural titleholder in 2023, and who is president of the HBLF; last year’s co-winner, Spar Hungary president-CEO Gabriella Heiszler; and BBJ publisher Tamás Botka

This year’s nominees were Zsófia Beck, managing director at Boston Consulting Group Hungary; Nikolett Blaskó, founder, co-owner and CEO at Advanced Communication Group; and Róbert Keszte, head of global operations at Continental.

This year’s Community Award, presented by 2020 co-winner Heiszler, went to Keszte, an experienced general manager in the automotive industry who is well-known in both expat and Hungarian circles. He was also voted the Most Inspiring Leader of 2023 by the

BENCE GAÁL

Ana Maria Vargas

Hall of Fame: CEO Community Award Past Winners

In 2022, the Budapest Business Journal issued certificates of appreciation to two people who had done much to look after the broader community in their dayto-day work throughout the COVID pandemic and in developing the LifeSaver app. They went to Gábor Csató, CEO of the Hungarian National Ambulance Service, and Amanda Nelson , then CEO and chairwoman of Vodafone Hungary. In 2023, the CEO Community Award

297 company leaders responding to PwC’s 13th Hungarian CEO survey last year.

Accepting the award, he noted that, although we are living in “crazy times,” there are still people who manage to keep their “good sense.” He went on to make an appeal to his business peers.

“I would like also to encourage all of you to engage more with the local communities, wherever you are, wherever you have your local communities because this is helping your personnel to grow and helping your organization to be more successful,” he said.

Expat CEO Winner

The highlight of the evening was the announcement of the Expat CEO Award 2025. Over the past

Event Partners

The 2025 CEO Gala was supported by strategic partner the Hungarian Investment Promotion Agency, which has been involved since the launch of the award back in 2015. This year’s principal sponsors were Penny, BDO, Citi , Heineken , Phoenix Pharma , PwC , Synergy, and TaylorWessing .

was launched, with the inaugural winner Andrea Solti Istenes, country chair and president of the board of Shell Hungary and president of the Hungarian Business Leaders’ Forum. The 2024 award was shared by co-winners Gabriella Heiszler, president-CEO of Spar Magyarország, and Arne Klehn, then multi-property general manager of the Budapest Marriott Hotel and Marriott Executive Apartments, and now GM of the JW Marriott Berlin.

decade, this accolade has become one of the most prestigious awards on the Hungarian business scene, recognizing outstanding leadership and international collaboration.

Over the years, the winners have come from a diverse array of industries and backgrounds, reflecting the dynamic and international nature of the Hungarian business environment.

After guests enjoyed their main course, Marshall introduced this year’s nominees: Byung Kim , ExxonMobil Hungary lead country manager and lead controller; Ana Maria Vargas, J&J Innovative Medicine Hungary country director; and Guntram Würzberg, E.ON Hungária CEO and chairman.

“We launched this back in 2015 because, while there was, quite rightly, plenty of recognition for Hungarian CEOs, many of whom do outstanding work and many of whom are with us tonight, there was nothing to celebrate the contributions made to the Hungarian economy by expat company leaders,” Marshall explained.

“Our expert jury is comprised of leaders of bilateral chambers and international business development organizations with outstanding experience both in foreign and domestic economic life, complemented by the prize winner of the previous year and the CEO of the Budapest Business Journal,” he added.

He then invited Danish national Bruun to the stage with the envelope containing the winner’s name in his hand.

“I think you can imagine what a privilege it has been for the jury to have three such strong candidates as we saw here in the videos. They are expats, they live here in Hungary, and they all made great contributions in their jobs,” the Lego Hungary leader said.

“All three are very well qualified, but only one can become the winner,” he noted before opening the envelope.

“And the winner of the Expat CEO 2025 Award is…. Ana Maria Vargas!”

Originally from Columbia, Vargas is the first winner from her country and the first wholly from Latin America (Marc de Bastos Eckstein, who won in 2018, is a Brazilian-German dual national).

A Global Leader

Vargas is a global leader with almost two decades of experience in the pharmaceutical market in

Europe, the United States and Latin America, who has led the Budapest operation since October 2022. She advocates for embracing digital advancements, believing in its potential to revolutionize business, uncover new opportunities, streamline processes, and deliver better value to customers, stakeholders, and the wider community.

Taking the stage, Vargas expressed gratitude for the recognition: “I work in the healthcare industry, and for the past 32 years, Johnson & Johnson Hungary has been fully dedicated to partnering with stakeholders in [….] achieving one clear purpose, which is to provide and change the further care of patients with chronic diseases,” she said.

“This recognition also goes to my team in Johnson & Johnson Hungary, a group of Hungarian individuals who put their hearts out every day,” she remarked. “Let’s continue to work for a healthier Hungary together,” she concluded.

Marshall returned to the stage for a final time, thanking the guests for their attention and, as has been his tradition in recent years, closed his remarks with a tribute to one of the greatest of Irishcomedians, Dave Allen: “Goodnight, thank you, and may your God go with you!’ Goodnight, everyone.”

As Marshall had joked, the formal part of the evening was over, but the evening was yet young. The gala continued well into the night, with guests mingling in the Corinthia’s elegant Grand Ballroom foyer and lounge. Attendees enjoyed exquisite desserts, fine drinks, and live music by renowned local singer-pianist Károly Nyári and one of his daughters, Aliz (back by popular demand, having made their CEO Gala debut two years ago), making the evening a memorable celebration of business excellence and the contribution of expat executives to Hungary’s economy.

Róbert Keszte

From left: András Sávos, Róbert Keszte, Balázs Román, Tamás Botka, Andrea Solti Istenes, Chresten Bruun, Gabriella Heiszler, Guntram Würzberg, Ana Maria Vargas, Byung Kim, Zsófia Beck, Nikolett Blaskó, Írisz Lippai-Nagy, Robin Marshall, Rita Szép-Tüske.

We would like to thank our generous sponsors and partners

CEO Gala 2025

2 Business

BCSDH Business Leaders Call for Immediate, Informed Climate Adaptation

At a recent business breakfast organized by the Business Council for Sustainable Development in Hungary, climate adaptation emerged as a pressing concern that can no longer be delayed. As global damage from climaterelated disasters continues to rise, adapting to climate change is not just about resilience but also rediscovering nature’s own mechanisms, the keynote speaker told guests.

provided we learn to interpret and harness them effectively.

In the World Economic Forum’s

2025

report,

Jan Pokorný, co-founder and director of the research organization Enki, o.p.s., emphasized the importance of reconnecting with natural systems to address the climate crisis better.

The forum, hosted on March 25 by Csaba Kandrács, deputy governor of the National Bank of Hungary, served as a platform for dialogue between corporate, scientific, and civil leaders on how best to approach the adaptation imperative.

Extreme climate and weather events are increasing in frequency and severity, with global damage now amounting to an estimated USD 16 million per hour. Much of this damage, Pokorný says, results from a general lack of understanding about the interconnectedness of natural systems.

Modern infrastructure and organizational systems are no longer adequate for addressing the complexity of climate-related challenges. Pokorný argues that adaptation must now be prioritized across sectors. He adds that nature still offers vital solutions,

leaders identified extreme weather as the second most significant risk over a twoyear outlook and the number one threat over the coming decade. These findings reinforce the idea that current landscape and environmental management approaches are proving insufficient.

“Improper landscape management, stemming from ‘plant illiteracy,’ i.e., the low level of human knowledge about plants, is leading to an increase in continental droughts, rising local temperatures, and the development of an arid climate, interrupted by torrential rains and extreme weather events,” Pokorný told the BCSDH breakfast.

“This ignorance also affects climate adaptation, as we fail to properly utilize nature in this process. People do not understand the role of plant transpiration in the ‘air-conditioning’ function of vegetation, its impact on the water cycle, or the interactions between plants and the atmosphere,” the research director warned.

Deeper Understanding

“By gaining a deeper understanding of these processes, we can equip ourselves with numerous tools for both climate mitigation and adaptation,” Pokorný said in his thought-provoking presentation.

Integrating sustainability considerations into corporate finance is now seen as a vital pathway to enhancing long-term resilience, the BCSDH forum was told.

Softening Ambitions

However, current global (especially American) and European policy trends may lead to a softening of previous ambitions around climate mitigation. Even so, Pokorný and others at the forum warned that climate adaptation can no longer be postponed. Environmental changes are already underway, and they are accelerating.

The second half of the breakfast forum consisted of a closed session that brought together senior representatives from the corporate, scientific, and civil sectors. The discussions focused on identifying effective pathways for adaptation, practical implementation strategies, and the critical role of water in climate resilience efforts.

The session also included presentations of business-oriented case studies, with several firms sharing their ongoing adaptation measures.

The discussions were moderated by Barbara Wassen, Climate Ambassador-atLarge at the Ministry of Energy; Dr. Gábor Bartus, secretary of the National Council for Sustainable Development; and Dr. Károly Kovács, president of the Hungarian Water and Wastewater Technology Association and CEO of Pureco Ltd. Their expertise helped frame a picture of Hungary’s climate vulnerability and the systemic changes needed to address it.

Despite growing awareness of climate impacts, most businesses remain illprepared to address them. According to BCSDH’s “Towards Net Zero” survey published in January, although 91% of companies report experiencing the effects of climate change, only 16% have implemented a concrete action plan for climate adaptation.

This gap is particularly alarming given Hungary’s heightened vulnerability to climate change relative to its relatively minor role in global greenhouse gas emissions.

“The frequency of extreme weather events has increased, and the business sector must also prepare for this. We need to assess how these changes may impact business operations and develop strategies for adapting to our changing world,” said Attila Chikán Jr., president of BCSDH, in his opening speech.

“Although several international developments are working against sustainability efforts, this does not mean that companies can relax their commitments regarding climate change. Climate change is not slowing down; it is becoming increasingly severe,” he warned.

The growing regulatory pressure to disclose environmental performance has led to a rise in the number of corporate sustainability strategies and the integration of performance indicators.

These tools have become essential for assessing physical climate risks and guiding businesses toward more resilient and adaptive operations.

The insights gathered at the forum will be developed further during executive roundtable discussions scheduled for May. These high-level meetings aim to produce a set of actionable recommendations tailored for corporate decision-makers, which will be unveiled at the BCSDH business lunch in October.

“The frequency of extreme weather events has increased, and the business sector must also prepare for this. We need to assess how these changes may impact business operations and develop strategies for adapting to our changing world.”

The forthcoming guidelines are expected to address Hungary’s current climate context, identify specific challenges, and highlight strategic enablers to support businesses on the path to adaptation.

BCSDH says it has reaffirmed its commitment to supporting the business community with transparent, evidencebased recommendations and tools. Encouraging businesses to take action remains a top priority, especially in adaptation planning.

The event underscored that climate adaptation is no longer just an environmental issue but a strategic and economic one that must be incorporated into the core of business operations.

Photo by BCSDH

Jan Pokorný of the research organization Enki, o.p.s.

Hungary Hoping Defense Can

Supercharge Automotive

With rising geopolitical tensions and rearmament efforts in play, defense holds the promise of more business for automotive stakeholders. And while demand for EVs has been plummeting globally, the battery manufacturing value chain may also fuel a longawaited boost.

Automotive Matters

A monthly look at automotive issues in Hungary and the region

in Hungary. Until relatively recently, it had been under the radar and treated like more of a pariah sector. Last year, however, spending surpassed the 2%

Given the German economy’s dire condition and falling interest for EVs on the global scale, the Hungarian automotive sector has been suffering. And U.S. President Donald Trump’s newly introduced tariffs on vehicles made in Europe couldn’t have come at a worse time.

In parallel, the U.S. threat to withdraw from Europe’s defense has set another wheel into motion, namely the EU’s willingness to fund rearming. As part of an ambitious package, the European Commission will raise up to EUR 150 billion on the capital markets “to help EU Member States rapidly and substantially increase investments in Europe’s defense capabilities.”

Stakeholders on the member state level are galvanized with good reason: increased military spending could mean more orders for automotive due to existing synergies. The question is how realistic it is for suppliers to jump on this speeding bandwagon. Experts from leading companies and organizations shared their insights at a recent industry event, Portfolio-MAGE Automotive 2025, highlighting key developments and opportunities.

What sounds at first blush like a bulletproof alternative may not be that straightforward, however. Take the fact, for starters, that the defense industry has been pretty much ignored for decades

of GDP threshold, a minimum NATO requirement that less than threequarters of member states fulfil today (and long a bone of contention for the Trump administration, among others in the United States.

According to Tamás Stukovszky, deputy CEO of the Defense Supply Agency Zrt., despite the decline in spending in the aftermath of the change of regime and the so-called peace dividend from the end of the Cold War, the fundamentals have remained intact.

Redeploy Capacities

“We need to find ways to redeploy spare capacities,” said Stukovszky. At the same time, the entry threshold has become much higher for suppliers due to technological progress, he added.

János Bálind, managing director of the eponymously named Bálind Ltd., agreed that even though the sector declined after the regime change, he is confident that a large number of automotive suppliers have the skills to enter the defense industry. Military and civil developments have been very much connected throughout the years. What’s more, the military tended to lead the charge in that department, and innovations trickled down to society. But as Áron Fellegi, chairman of the board of HypeX Consulting Zrt. pointed out in Europe the trend has reversed: the civil economy has become the engine of

innovation, and this is what we need to adapt to. “As closed as this industry is, it is also desirable to have a degree of interoperability,” he stressed.

“The door is open for automotive suppliers: every armored vehicle is based on a conventional vehicle, it is just a question of implementation,” said Zoltán Szokolay, deputy head of the engineering department at the Defense Innovation Research Institute.

He added that there is openness on the part of the defense industry: everything from AI to chip technology could be interesting. However, suppliers will need to undergo serious due diligence, which is a challenge. The solution could be an innovator ecosystem, which is being worked on.

The potential for dual-use technologies is real, as they are increasingly gaining traction in both defense and automotive applications. Many firms are exploiting this, such as Magyarmet Finomöntöde Kft., which supplies Rolls Royce, for instance.

Find Your Niche

Managing director Imre Győri warned that it makes sense to find niches where supply can start immediately. Should you consider going in the development direction, it may take years before it translates into anything viable. And that’s a big downside at cashstrapped times like these.

Apart from benefiting from ballooning military spending, electrification should offer another escape route for automotive. Even against the backdrop of stagnating global demand for EVs, the market continues to have real potential. Leading global manufacturer CATL expects dynamic growth in

the coming years, especially in China and Europe. Battery are needed not only in cars, but also in phones, computers and other electronic devices.

A key aspect is the proximity of large OEMs. BMW, Mercedes and Audi either plan to manufacture e-drive models in Hungary , or are already are, which favors building out supply chains. In fact, a large chunk of the future output of CATL’s battery factory under construction in Debrecen, was secured by Mercedes pretty much upon the project breaking ground.

“The door is open for automotive suppliers: every armored vehicle is based on a conventional vehicle, it is just a question of implementation.”

Building supplier relationships is one of the biggest challenges for Hungarian companies. According to Balázs Szilágyi, CATL’s public affairs manager in this country, cooperation with Chinese firms does not end with the signing of a contract; it is essential to maintain constant contact and ensure quality.

In the case of services, local suppliers have a better chance of joining the value chain, but Hungarian enterprises still need to make significant progress when it comes to the production of components. Experts agree that successful suppliers are those who deliver on time, are flexible and deliver high quality.

Could the rise in defense spending boost the automotive sector?

Photo

High-performance Computing: More Power or More Customization?

The in-house solution for high-performance computing at the Szeged-based Hungarian Center of Excellence for Molecular Medicine is bespoke tailored to the research institute’s specific needs.

That modern biomedical research thrives on data is an understatement. As increasingly complex biological systems are unlocked, researchers are now studying processes that span from the molecular to the societal level. In this context, powerful computing capacity is no longer a mere advantage but an indispensable requirement for state-of-the-art research. With sequencing technologies becoming more affordable and data collection methods more sophisticated, researchers must contend with petabytes of genomic, transcriptomic, and proteomic data. Machine learning and large-scale simulations are now integral to biomedical discoveries, requiring robust computing systems to support these operations.

To remain competitive as a source of groundbreaking medical research, the Hungarian Center of Excellence for Molecular Medicine has taken a significant step forward by establishing a dedicated computing cluster. This infrastructure significantly enhances HCEMM’s ability to explore agerelated diseases, process large datasets, model, and develop novel bioinformatics approaches. The new system also provides secure on-site storage for critical research data. While negotiating access to a major supercomputer, such as the Komondor (operated by the Governmental Information Technology Development Agency and based 225 km northeast of Szeged by road in Debrecen), is often a valid solution, and one HCEMM

About the Hungarian Center of Excellence For Molecular Medicine

The Hungarian Center of Excellence for Molecular Medicine is a distributed institute whose scientists develop advanced diagnostics and treatment options supporting healthy aging. The HCEMM program is currently funded by an H2020 Teaming Grant (where Semmelweis University, the University of Szeged and the HUN - REN Biological Research Center, Szeged, cooperate with their advanced partner, the European Molecular Biology Laboratory, headquartered in Heidelberg, Germany) and

a thematic excellence award, as well as a national laboratory award from the Hungarian Government. The various activities are coordinated by HCEMM Nonprofit Kft., headquartered in Szeged, Hungary. HCEMM works at the interface of academic and industrial research on topics related to translational medicine. The goal is to improve the quality of life for an aging Hungarian population while at the same time lowering the cost of healthcare provision through novel applications in the field of molecular medicine.

GPUs play a pivotal role in biomedical research due to their superior parallel processing capabilities. Tasks such as protein folding simulations, deep learning for image recognition, and next-generation sequencing analysis benefit significantly from the massive throughput of GPU-based computing.

Doing the Heavy Lifting

While traditional CPUs are limited to handling a few hundred tasks in parallel, high-end GPUs can process tens or even hundreds of thousands of simultaneous computations, making them ideal for the heavy lifting in bioinformatics.

HCEMM maximizes this strategic investment by ensuring that research groups can leverage the system to its full potential. The computer cluster forms the foundation of the Scientific Computing Advanced Core Facility, led by Dr. João Sequeira, who ensures that scientists in the institute receive guidance and support from study planning to execution.

did employ in the past, investing in a self-hosted system offers surprisingly human-centered advantages.

Crucial Benefit

One key benefit is ease of use. External computing centers often require data to be formatted and submitted in a certain way, forcing scientists to “translate” their requests into a different format. In contrast, a local computing cluster interfaces seamlessly with ongoing research. Additionally, with both the hardware and the experts managing it at HCEMM, local research groups gain the unique ability to discuss and adjust their projects in real-time. On-site computing enables a constant loop of feedback and modifications, something that is difficult to achieve with distant supercomputing centers. Even though large external systems often surpass local capacity, a research project supported by on-site resources may progress faster toward its goals thanks to this direct, hands-on access.

HCEMM’s system, which is currently being configured for general use and has run its first test code (a simulation of a monkeypox outbreak), is a cluster containing 13 nodes (individual computers), collectively featuring

high-performance processors, three terabytes of DDR4 RAM, 300 terabytes of storage, and two NVIDIA A40 graphics processing units, or GPUs.

The components of this system have been selected to cater specifically to the needs of research undertaken by HCEMM research groups, which often involve managing large datasets and machine learning solutions.

Rather than simply providing access to a computer for research projects, HCEMM ensures that experts with a deep understanding of the computer cluster’s capabilities work alongside researchers toward a common goal.

Additionally, a new research group, Computational Medicine, led by Dr. Gergely Röst, has been established to advance the mathematical tools needed to tackle current challenges in medical research.

About the Scientific Computing ACF

The Scientific Computing Advanced Core Facility at HCEMM aims to position itself as a cornerstone for local bioinformatics development. It intends to facilitate collaboration by connecting the varied computational expertise of research groups and promoting the exchange of technical knowledge. Plans include expanding the technical infrastructure and streamlining workflows to improve the research efficiency and impact of scientific discoveries.

By developing innovative approaches in research design, modeling and statistics, the group serves as a force multiplier for HCEMM’s new system, accelerating scientific discovery while optimizing efficiency and cost-effectiveness. Perhaps surprisingly, in an increasingly online and networked environment, investing in physically bringing infrastructure and experts together offers advantages that are hard to match with raw computing power alone.

Scientific Computing ACF head Dr. João Sequeira (left) and Computational Medicine Research Group leader Dr. Gergely Röst.

Zwack Launches Spring Offensive on Back of Strong Holiday Season Sales

Hungarian spirits maker Zwack Unicum Nyrt. is launching a fullfledged spring offensive for two of its products to bolster its position in the Hungarian market, building on strongerthan-expected results during the holiday season.

BENCE GAÁL

According to an earnings report, the iconic distiller, best known for its herbal liqueur Unicum, reported an after-tax profit of HUF 3.5 billion for the first nine months of its business year that started on April 1, 2024,

up approximately 8% from a year earlier. Net sales climbed by about 10% to HUF 21 bln over the same period.

While the company described the first half of the year as “somewhat unimpressive,” the third quarter brought a sharp rebound, with after-tax profit jumping 17% year-on-year. “The holiday season was markedly better than expected,” Zwack noted, setting the tone for a dynamic start to 2025.

To maintain momentum, the company has rolled out a spring campaign led

by two key product pushes, starting this month. Following a successful trial phase in the hospitality sector, Unicum Orange Bitter is now hitting retail shelves nationwide.

To support the launch, Zwack produced a new commercial set in Bolgheri, Italy, infused with the Mediterranean spirit of the citrusforward liqueur. The spot includes a brief cameo by Izabella Zwack, current board member, sister of current head of the firm Sándor and daughter

of late chairman Péter, and highlights the family’s ties to the Italian coastal town, where they’ve long operated a café.

Speaking at a panel discussion about the new campaign, Hungarian chef and TV personality Rozina Wossala noted that she was “not at all surprised” at the success of the bitter orange-flavored variant of Unicum, as in her experience, it was an immediate hit among the younger generations.

Second Pillar

The second major pillar of the campaign centers on St. Hubertus, one of Zwack’s oldest brands. The company is debuting a new ad for the herbal spirit, its first in years, focusing on themes of friendship and reconnection after the divisions brought by the COVID-19 pandemic and ongoing political tensions. St. Hubertus, first introduced in the early 20th century, remains a nostalgic favorite for many Hungarian consumers.

Dávid Kovács, the company’s marketing director, noted that the key idea behind the new St. Hubertus ad campaign was to “display the brand’s DNA” five years after the last commercial was shot, which is especially important in an era where “everybody is spending on ads like crazy.”

According to the earnings report, Zwack also raised its prices by an average of 4.7% from Jan. 1, 2025, to offset the impact of rising feedstock prices and an excise tax hike, both of which were exacerbated by the weakening of the forint.

Looking ahead, the company said it expects full-year after-tax profit to be broadly in line with last year’s result, suggesting a cautious but confident outlook as it leverages its legacy brands and storytelling-driven marketing.

Waberer’s 2024

Income Falls 27%

The net income of listed Hungarian hauler Waberer ’s dropped 27% to EUR 21.7 million in 2024 due to a financial loss, according to a release published on the Budapest Stock Exchange website on April 1. Revenue rose 7% to EUR 757.5 mln, while operating profit slipped 2% to EUR 41.9 mln. Waberer’s registered a financial loss of EUR 17 mln, sharply exceeding the EUR 4 mln loss posted in the base period. Chairman-CEO Zsolt Barna said the company had made “significant strides” toward achieving its strategic goals last year by launching rail transport operations, beginning to build a nationwide warehouse logistics network, broadening its insurance business, and entering the road passenger transport market. “These acquisitions and investments are value-

creating steps that we hope will provide good returns for our investors and contribute to the further significant growth of Waberer’s Group,” he added.

MOL Acquires Endrőd Gas Field, Plans

HUF 150 bln Investment

Hungarian oil and gas company MOL  announced on April 1 that it has acquired a gas field in Endrőd (160 km southeast of Budapest) from O&GD, the Hungarian subsidiary of Sand Hill Energy. MOL had revealed plans to purchase the field in December 2024. The site includes 29 wells and produces approximately 1,000 barrels of oil equivalent per day. MOL currently operates close to 1,300 oil and gas wells across the country. In 2024, the company’s domestic fields yielded nearly 600,000 tonnes of crude and around 1.5 billion cubic meters

of natural gas. MOL is investing HUF 150 bln in domestic hydrocarbon production over the next three years.

Raiffeisen Bank Profit up 12% to HUF 116 bln

Austrian-owned Raiffeisen Bank Zrt. reported a 12% rise in consolidated aftertax profit to HUF 116 billion in 2024, according to a release published on the website of the Budapest Stock Exchange on March 31. The net interest revenue declined 7% to HUF 187.1 bln, while net revenue from commissions and fees rose 16% to HUF 94.4 bln. The bank booked a HUF 13.4 bln release of provisions, up significantly from just HUF 200 million a year earlier. Total assets reached HUF 4.615 trillion at the end of December, marking a 4% year-on-year increase. The client loan stock grew 6% to HUF 1.872 tln, and client deposits rose 7% to HUF 3.187 tln.

Trimetrik Completes

HUF 2 bln Plastic Parts Plant in Székesfehérvár

Trimetrik has finished the construction of a plastic parts plant worth more than HUF 2 billion at its base

in Székesfehérvár (65 km southwest of Budapest by road). The company received HUF 857 million in combined funding from the European Union and the Hungarian state for the project. Trimetrik manufactures injectionmolded components for the automotive and rolling stock sectors, and its business partners include Knorr-Bremse and Emerson. According to public records, the company generated a net revenue of HUF 2.1 bln in 2023.

Mapei Projects 14.8% Sales Growth for 2025 Despite Market Gloom

The Hungarian unit of Italian building materials manufacturer Mapei expects its turnover to rise by 14.8% in 2025, even as broader market conditions remain weak, Mapei Kft. managing director Béla Markovich said on March 27, according to a press release. He noted that the company’s net sales reached HUF 33.4 billion in 2024. Citing a survey of 1,800 industry professionals, Markovich said that 47% believe the sector is on a negative trajectory, while 24% anticipate improvement and 29% expect stagnation.

After a successful seasonal trial in the hospitality sector, Unicum Orange Bitter is now hitting retail shelves nationwide.

Photo by Bence Gaál

3 Special Report

Industrial and Logistics

Some Signs of Cooling, but Sector Continues to Boom

The industrial and logistics sector continues to boom, with leading CEE regional industrial park developers and operators and Hungarian players active. The market has grown on the back of increasing demand for space to meet significant foreign direct investments, notably in the electric vehicle and EV-related industries.

Last year, close to 500,000 sqm of industrial and logistics space was completed in Hungary, according to consultancy CBRE. Strong occupancy has resulted in an overall vacancy rate of 7.6%.

GARY J. MORRELL

That said, some analysts express concerns over moderating demand, notably in the logistics segment of the sector. All players at the higher end of the market are developing in line with the demand for more highly-specified and sustainable spaces.

“The industrial and logistics sector in Hungary and across Central and Eastern Europe has been experiencing strong growth for several years, primarily driven by e-commerce expansion and nearshoring,” says Máté Szoboszlay, business development and investment director at Faedra Group.

“While economic uncertainties and rising costs have introduced a degree of caution among occupiers, the overall demand for modern, well-located facilities remains robust. At Faedra Group, we see a slight shift in the pace of inquiries, but not a fundamental drop-off, especially from companies prioritizing quality infrastructure and proximity to major transport routes,” he notes.

“This resiliency is partly due to supply chain reconfigurations and a sustained push toward more efficient operations. Businesses are recalibrating their logistics networks, often opting for flexible solutions that allow them to respond to a rapidly evolving market. Budapest and other regional hubs in Hungary stand out as highly competitive locations, attracting both local and international players seeking to optimize their distribution strategies,” Szoboszlay adds.

New construction is slowing, although there is still a forecast pipeline of 314,000 sqm in the Hungarian countryside and 144,000 sqm in Greater Budapest in 2025.

There is now more than 5.5 million sqm plus of modern logistics and industrial space in Hungary, with 3.7 million sqm in the Greater Budapest area and 1.8 million sqm in provincial centers, according to the Budapest Research Forum (consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary).

Cushman & Wakefield has traced a pipeline of 318,000 sqm for Greater Budapest, due to be completed by the end of 2026. CTP, HelloParks and Prologis are the dominant industrial landlords. Around 70% of modern industrial and logistics facilities are concentrated in Greater Budapest, predominantly along the M0 orbital motorway, with a 6.8% vacancy. Speculative development in Greater Budapest is expected to decelerate as developers take a more cautious approach to mitigate the perceived risk of oversupply.

Nuanced Demand

“The demand shift is nuanced. While speculative demand has slowed slightly in some areas, built-to-suit projects remain strong, and there is a continued push for energy-efficient, well-located spaces,” comments Zsuzsanna Hunyadi, director of leasing and customer relations at Prologis Hungary.

“Demand for high-quality industrial and logistics spaces remains solid. Nearshoring and the reshuffling of global supply chains continue to drive interest, even

if economic uncertainty has made some customers more cautious,” she explains.

“What we are seeing is that right now, industry players are following a calm, steady ‘wait and see’ strategy, and I think this mentality will dominate the first two quarters. Growth is now mainly about optimizing costs,” Hunyadi adds.

Countryside locations are becoming increasingly important due to the significant inflow of FDI from the likes of BYD (in Szeged) and BMW and CATL (in Debrecen).

Colliers says this will likely increase demand for warehousing and manufacturing space. Even so, Greater Budapest continues to attract developers as the country’s largest industrial and logistics hub.

“In 2025, I expect stable demand in Hungary and an increased focus on regional [provincial] markets, especially in the south. At CTP, we already see a healthy prelease ratio for our

pipeline

and even more for the years beyond.

This is driven by nearshoring trends and increasing manufacturing demand,” comments Ferenc Gondi, managing director and country manager at CTP Hungary.

With some cooling in the market, where overall availability has risen to 8-9% from a low of 2-3%, the BTS development option has become the preferred option.

“Developers and landlords increasingly need to develop in accordance with tenant-specific solutions, although this provides less flexibility [….] concerning future lettings. For example, developing a facility for a car manufacturer or supplier is very tenant-specific,” says Valter Kalaus, managing partner of Newmark VLK Hungary, on development strategies.

Highly Complex

Panattoni has handed over a BTS 28,000 sqm warehouse for the drug chain Rossmann in Üllő, about 30 km southeast

of central Budapest, relatively close to the capital’s airport, in partnership with the owner OTP Real Estate Investment Fund. The warehouse includes a 4,000 sqm, threestory semi-automated racking system and a 4,000 sqm office building, is due for full completion in the third quarter of 2025.

“This project posed a highly complex challenge, and we consider it a remarkable achievement to reach this phase on schedule, allowing Rossmann to commence the installation of its technological systems,” said László Kemenes, managing director of Panattoni Hungary.

Ádám Székely, co-owner of the Hungarian industrial developer InnoVinia, says that regional locations are growing in importance across the country with rising demand. The company has a portfolio of more than 200,000 sqm of industrial facilities across Kecskemét, Polgár, Miskolc, Debrecen, Tiszaújváros and Karcag. Further projects in Szeged and Pécs are under preparation.

CTP, meanwhile, has signed a 10-year lease agreement with Zoomlion to relocate its operations to CTPark Tatabánya. Zoomlion will invest EUR 100 million in technology in the factory, while CTP will tailor the 35,000 sqm TBN5 logistics building to meet the Chinese manufacturer’s needs. In addition, the tenant will be able to utilize outdoor areas, newly constructed service facilities, and a 20,000 sqm testing zone. The location of CTPark Tatabánya was a critical factor in the decision. Almost

70 km west

of Budapest by road and near the M1 highway, the park has access to major transit routes linking Eastern and Western Europe. Additionally, its proximity to the “golden triangle” of capital cities Budapest, Bratislava, and Vienna ensures access to the company’s partners across the region, according to CTP.

In another industrial delivery, the Belgian-Hungarian WLP (Weerts Logistics Parks) and RaktárAD have topped out a 40,000 sqm logistics and production plant in Vecsés, close to the M0 and the airport, for Canada’s Magna, the world’s fourth largest supplier of automotive parts.

Although the industrial and logistics sector is generally regarded as an attractive investment destination, availability is limited as developers tend to hold onto assets. One route in, however, is via industrial parks developed by independent players. An example is the Faedra22 logistics, sold to a Swiss-German investor.

The 16,600 sqm development concept was tailored around high building specifications with a strong ESG focus, including heat pumps, solar panels and insulation, contributing to Breeam “Very Good” and “A+” energy ratings, according to Szoboszlay.

Artist’s rendering of the Rossmann warehouse in Üllő, developed by Panattoni and owned by the OTP Real Estate Investment Fund.

Industrial and Logistics Developments Increasingly Target Sustainability

Responding to environmental, social, and governance market demands and EU Taxonomy requirements, developers and park operators are building more highly specified complexes. A high level of green building certification has become a requirement for investors and is an advantage in attracting international tenants. A critical new ESG requirement for occupiers is the need for ESG data for reporting purposes.

and robust insulation are routinely integrated into many new industrial and logistics parks. Likewise, social aspects, such as employee well-being areas, safe working conditions, and inclusive environments, are gaining priority.

ESG-related investments typically require an upfront financial commitment from the developer or landlord, covering design and construction elements such as energy-efficient systems, upgraded insulation, or renewable energy installations. However, these improvements often yield cost savings and operational efficiencies over time, benefiting tenants through reduced utility bills and enhanced working environments. According to Lóránd Gárdonyi, the real estate and customer experience director at Prologis Hungary, the costs are typically shared.

A shift towards a built-to-suit development model gives the developer more opportunities to develop according to tenant demands and specifications, beginning from consultations in the initial design phase and then working together throughout construction.

HelloParks, part of the Futureal Group, has sold the two Breeam New Construction “Outstanding” warehouses at the HelloParks Páty (22 km west of central Budapest by road) to Erste Real Estate Fund. The buildings offer a combined 84,000 sqm at the mega park, positioned along the M1 motorway in the capital’s western agglomeration.

“Increasingly stringent EU regulations are prompting Hungarian tenants to choose warehouses that support their sustainability goals,” comments Rudolf Nemes, CEO and co-founder of HelloParks.

“Tenants’ requirements from sustainability are currently still rather mixed, but it is definitely starting to become a high priority for them. […] High certification levels are an advantage for attracting international tenants,” says Anna Bencze, head of sustainability at HelloParks.

“ESG reporting requirements have also naturally emerged for our tenants, and one of their key requirements is now the need for receiving ESG data for

CTP handed over a 100,000 sqm logistics center near Szigetszentmiklós (22 km south of central Budapest by road) in Hungary to Tesco in December 2024. Part of a greenfield investment spanning 60 hectares, the facility aims to enhance Tesco’s efficiency in serving Hungarian customers, optimize logistics, and significantly reduce carbon dioxide emissions and environmental impact. The center was due to start fully serving Tesco stores nationwide in March.

their own reporting purposes. From a sustainability perspective, the positive outcome of the energy crisis has been that the vast majority of building occupiers have shifted to a much more energy efficient operation, for which they have much better opportunities in a newer, smarter building,” she notes.

“The provision of renewable energy through local production (for example, solar panels or green electricity contracts) is also a daily topic in negotiations. In general, it can be said that sustainability needs related to dayto-day operations are in the foreground, but we are also increasingly seeing more demands from tenants’ own corporate ESG strategies,” Bencze adds.

Modern, Cost-efficient, Sustainable

Across the board, tenants are seeking modern, cost-efficient, and sustainable facilities. Features such as high ceilings, ample dock doors, advanced fire protection, and flexible layouts top the list of requirements. Many also value location, seeking easy access to highways, public transportation, and major consumer markets.

Sustainability credentials, including energy-efficient systems and the potential for on-site renewable energy, are increasingly playing a critical role in site selection, agrees Máté Szoboszlay, business development and investment director at Faedra Group.

Wing and Alteo Energiakereskedő, Alteo Group’s energy trading company, have entered into a strategic cooperation agreement under which Alteo will supply 100% of the industrial properties managed by the developer’s sub-brand, Wing Industrial, with electricity from clean and renewable energy sources.

Alteo will thus continue to support Wing in 2025 in procuring green electricity for the Airport City, East Gate, East Gate PRO and Login business parks. This year, 50% of

the total electricity purchased by Wing’s entire corporate group will come from clean and renewable energy sources, marking a significant step forward in sustainability.

The developer says ESG criteria and sustainability are priorities in Wing’s developments. One of the group’s longterm goals is to measure the energy consumption of all its buildings with up-to-date data recording and analysis. Furthermore, Wing aims to modernize existing facilities and progressively develop more energy-efficient buildings that rely on green electricity, focusing on both presentday requirements and tenant’s needs. There is no question that ESG considerations are reshaping tenant demand and investor expectations. Companies want facilities that minimize carbon footprints and promote resource efficiency, aligning with corporate social responsibility goals and regulatory pressures. Green certifications, renewable energy installations, and advanced energy monitoring systems are, therefore, increasingly becoming a necessity rather than a bonus.

Performance Benchmarks

EU Taxonomy guidelines further reinforce these trends, stipulating specific performance benchmarks for new developments. Developers who align with these guidelines may gain an edge in securing favorable financing terms and attracting top-tier tenants. Consequently, solar panels, energy-efficient lighting,

“As landlords, we invest in energyefficient designs and renewable energy solutions, but customers also contribute, particularly when requesting specialized sustainability features,” he explains. “Every request is different, but we are trying to provide our tenants with some ‘turn-key’ solutions for typical demands such as LED lighting programs, Smart lighting or heat-pump offers. We always strive to increase value by replacing end-of-life technology with current, more efficient and sustainable alternatives; we also see our tenants investing in their own technology to improve their effectiveness.”

“Increasingly stringent EU regulations are prompting Hungarian tenants to choose warehouses that support their sustainability goals.”

In many lease structures, landlords recoup part of the initial ESG investment through slightly higher rent or service charges, justified by the longer-term value-add for tenants. When these features significantly reduce operating expenses or help meet corporate sustainability targets, most tenants view the costs as beneficial. Indeed, many are willing to share in the investment if it leads to demonstrable savings or reputational gains.

Zsuzsanna Hunyadi, director of leasing and customer experience at Prologis Hungary, says logistics customers prioritize location, accessibility, and efficiency. She says a high “clear height,” optimized dock ratios, and sustainability features are key.

In contrast, industrial tenants often need more customized spaces, such as reinforced flooring, enhanced power supply, and tailored production layouts. ESG considerations and cost-efficiency are increasingly important across both segments of the sector. In the slightly longer term, logistics players focus on automation and scalability, while industrial customers require flexibility to accommodate technological upgrades.

GARY J. MORRELL

CTP Hungary Strengthens Position with New Management, Strategic Developments and Key Leasing Deals

CTP Hungary’s managing director, Ferenc Gondi, discusses how Hungary remains a key pillar of the company’s expansion, with significant leasing deals, strategic regional developments, and a growing emphasis on ESG initiatives shaping the future of industrial and logistics real estate in the country.

BENCE GAÁL

BBJ: How is CTP progressing toward its 2030 goal of doubling its CEE portfolio? Are you on track to meet this target?

Ferenc Gondi: We are making substantial progress toward our ambitious goal of doubling CTP’s CEE portfolio to 20 million sqm by 2030. We remain on track in Hungary with a strategic expansion plan focused on Budapest and key regional markets. Currently, two-thirds of our Hungarian portfolio is concentrated in Budapest, reflecting the capital’s importance as a logistics hub. At the same time, we are actively broadening our regional presence to capture a greater market share. Our investment strategy prioritizes growth and sustainable returns, ensuring that our developments remain high-quality, future-proof assets for our clients. Furthermore, CTP Hungary now has a newly structured management team, laying the foundations of a strong and stable operation. Tímea Pekár returns to the company as CFO, bringing valuable experience and continuity to the financial leadership. At the same time, Titusz Paróczi has been promoted to construction director, taking over the coordination of construction processes and further strengthening CTP’s in-house capabilities.

BBJ: Given that Hungary accounts for a significant portion of the group’s total GLA, how has the expansion plan for Hungary evolved? What milestones have been reached recently, and what percentage of the total does the Hungarian portfolio make up in 2025? FG: Hungary remains a cornerstone of CTP’s portfolio, and our expansion strategy has led to significant recent milestones. In 2024, we secured more than 320,000 sqm of leased space, demonstrating strong demand for our properties. Notable developments

include major leases such as Tesco and our freshly announced project with Zoomlion in 2025. Beyond Budapest, we are strengthening our footprint by developing new regional parks in logistics hotspots, ensuring that CTP remains the market leader in Hungary. This year, our Hungarian portfolio will continue to represent a substantial share of CTP’s total GLA, with the opening of a new park, reinforcing our position as a key driver of the group’s overall growth. In addition, we will continue our expansion in strategically important locations such as Vecsés and Biatorbágy.

BBJ: Two Hungarian developments, Budapest West and Budapest East, are part of CTP’s “Top 10 Parks,” the heart of the CTPark portfolio, accounting for more than 40% of GLA. What makes these sites stand out and attract tenants?

FG: These parks stand out due to their ecosystem approach, prime locations, and the continuous availability of expansion options. They are designed to offer tenants high-quality, flexible spaces and a range of ESG-driven and community-focused amenities. This includes solar energy solutions, our so-called “Clubhaus” facilities [see separate box], extensive green areas, public transport connections, and on-site services. The parks are managed by dedicated in-house teams, ensuring a consistently high standard of service and adaptability to tenants’ evolving needs. By the end of the decade, Budapest West is set to become our largest logistics park, further solidifying its position as a central hub for CTP’s operations in Hungary.

BBJ: How does the trend of nearshoring or “friend-shoring” impact CTP’s investment plans in Hungary? Are you seeing increased interest from manufacturing clients looking to relocate or expand operations here?

FG: The trend is significantly impacting CTP’s investment strategy in Hungary. We are seeing increased interest from global manufacturing clients, particularly from China, looking to relocate or expand their European operations. A prime example is Zoomlion, a leading Chinese construction equipment manufacturer, which is establishing a presence in Hungary this year. This shift reflects this country’s growing role as a strategic nearshoring destination, supported by its central location, skilled workforce, and strong infrastructure. CTP is well-positioned to accommodate this demand with our highquality industrial and logistics developments, reinforcing Hungary’s appeal as a prime location for international manufacturers.

Meet you at the ‘Clubhaus’

CTP is endeavoring to take its industrial parks to the next level by introducing its so-called “Clubhaus” community centers at select locations in the CTPark Network. Initially developed at CTPark Bor in the Czech Republic as a service center in 2017, the concept was formalized and rolled out as the first Clubhaus in 2020. Two years later, it was introduced to CTPark Bucharest West in Romania and CTPark Budapest West in Hungary.

BBJ: With tenants increasingly prioritizing ESG, how is CTP Hungary adapting its properties to meet these demands? What role does ESG play in your long-term strategy?

FG: ESG is at the core of CTP’s longterm strategy, and we continuously adapt our properties to meet the evolving sustainability expectations of our tenants. All new developments in Hungary are designed to achieve Breeam certification, ensuring high environmental performance.

“Our investment strategy prioritizes growth and sustainable returns, ensuring that our developments remain high-quality, future-proof assets for our clients.”

We integrate renewable energy solutions, such as large-scale solar panel installations, to enhance energy efficiency and reduce carbon footprints. Additionally, our parks feature biodiversity-focused green spaces, sustainable water management systems, and community-oriented infrastructure, including Clubhaus facilities that foster collaboration and well-being among tenants. Beyond property development, we are also committed to operational sustainability. Our in-house property management teams ensure that buildings are maintained to the highest efficiency standards, providing tenants with flexible, future-proof spaces supporting their own ESG goals. As a long-term owner and operator, CTP follows a “build-to-hold” model, allowing us to invest continuously in sustainability initiatives. By embedding ESG principles across our portfolio, we are responding to current market demands and future-proofing our parks to remain industry leaders in sustainable logistics and industrial real estate.

The company says it is working to open new locations throughout the CTPark Network. Each Clubhaus is a modern, functional community center that offers free space to the park community for meetings, educational activities, and social gatherings. On-site amenities include a restaurant, bistro, convenience store, and space for a doctor’s clinic. The surroundings are landscaped, and the buildings are adjacent to outdoor sports facilities, making them a focal point for the park and the surrounding community.

Ferenc Gondi, managing director of CTP Hungary

Central and Eastern European Industrial Remains Attractive Despite Development Downturn

The Central and Eastern European markets are attractive development and investment options. Leading international industrial park developers and operators are active in a market that has grown on the back of increasing demand for space to meet significant foreign direct investment, notably due to the rise of e-commerce and the electric vehicle and EV-related industries, as is the case in Hungary.

According to Colliers, the industrial sector witnessed a slowdown in 2024 across Central and Eastern Europe.

“Poland saw a significant decline in new construction, as did, to a certain extent, the rest of the countries in the region. Rental growth has stabilized across the region, particularly in the Czech Republic and Romania. Vacancy rates grew in most countries but at varying speeds and were affected by specifications of the local market,” the consultancy says.

Largest Market

Nearshoring has been a significant cause of the boom, making the region an attractive industrial and logistics destination; however, new supply has been moderating since the peak of 2022. Across Europe, Garbe Industrial Real Estate has traced moderating industrial rental growth and an overall vacancy rate of just below 6%.

When taken into account collectively, the five core CEE states (the Czech Republic, Hungary, Poland, Romania and Slovakia), SEE, and the Baltics take second place among European markets’ supply after Germany. That amounts to a combined 73 million sqm, about 62 million sqm of which is in the CEE-5.

Overall, Hungary’s speculative logistics and industrial market is smaller than its key peers like Poland and the Czech Republic. The relatively low per capita stock levels signal significant growth potential, especially in Hungarian provincial hubs.

According to Colliers, Poland remains the largest market in the wider CEE13, with a modern stock of more than 30 million sqm, accounting for approximately 45% of the region’s total. CTP is developing three new logistics parks in Łódź, Częstochowa and Bydgoszcz, totaling 215,000 sqm. The leading CEE industrial developer says it has 10 complexes across Poland at various stages of development in addition to a land bank of 2.5 million sqm.

In 2024, the volume of investment transactions involving warehouse assets totaled EUR 1.26 billion, while take-up remained at 5.8 million sqm (plus 4% year-on-year). Although developer activity decreased by 30%, the new supply of 2.6 million sqm was a return to pre-pandemic levels, with 1.8 million sqm still under construction. The sector has shown stability regarding vacancy rates at 7.5%, and rental levels have remained consistent with the previous year, according to the consultancy AXI Immo.

Romania’s industrial and logistics stock continues to grow; the total is now 7.4 million sqm, with another

650,000 sqm

under construction in hubs across the country, according to Colliers. The market is seen as attractive in the long term due to a competitive labor force and ongoing infrastructure modernization. Total industrial stock in the Czech Republic has surpassed the 12 million sqm threshold, with 1.3 million sqm under construction. Vacancy stands at around 3%, although there are signs that demand is slowing. The largest transaction was the pre-lease of a 52,000 sqm building in CTPark Brno to electronics manufacturer Hitachi Energy Czech Republic. Colliers says that demand for the full year was at its lowest since 2018 and was down 20% compared to the five-year average.

Southeastern Europe (Bulgaria, Croatia, Serbia, and Slovenia) is becoming an attractive logistics and light industrial destination, attracting regional industrial developers as demand for both logistics and light industrial space is evident. The leading regional industrial developers CTP and VGP are now active in the Serbia market. The total stock of modern Class “A” industrial space in Serbia has surpassed 1.1 million sqm, according to the regional consultancy iO Partners.

Highest Vacancy

Poland and Hungary have the highest vacancy rates at around 8%, although these are expected to fall as speculative pipelines are more restrained. The lowest vacancy rate

in CEE is in the Czech Republic, below 3%, although SEE has an estimated 2%.

In general, the vacancy rate in the CEE logistics and industrial market tends to be increasing. Cushman & Wakefield says average vacancy rates in the region are in the single-digit range, indicating very tight supply markets with a low availability of quality space.

Industrial developers and park operators are developing more highly specified Breeam- and Leedaccredited complexes to reflect ESG market demands and EU Taxonomy requirements. High certification levels are an advantage for attracting international tenants, and one of the key ESG requirements is now the need for ESG data for reporting purposes.

Further, shifting from speculative projects towards a built-to-suit model gives the developer more opportunities to build according to tenant demands and specifications, beginning from consultations in the initial design phase and continuing throughout construction. Sustainability accreditation is becoming the norm in the upper strata of the industrial sector.

“Stabilizing construction costs are seen as unlocking new developments while demand remains varied. For instance, some countries are expecting to see a somewhat lower leasing demand amid a softer external picture, while others are seeing stabilization. Prime locations and transport corridors (particularly in Hungary and Poland) will continue to attract most investments, while we also note, throughout most of the region, a rising interest from Asian companies looking at logistics or manufacturing,” concludes Colliers.

GARY J. MORRELL

CTPark Warsaw South is just 50 km from the Polish capital. The 20-hectare site has almost 38,000 sqm available now and a development potential of a further 53,500 sqm.

Logistics Parks

1

3 BILK ZRT. www.bilk.hu

4 DEPO INTERMODÁLIS TÁRSAS LOGISZTIKAI KÖZPONT KFT. www.depo-raktarvaros.hu

5 PROLOGIS PARK BUDAPESTSZIGET www.prologisce.eu/hu

CTPARK BUDAPEST EAST www.ctp.eu

7 BUDAPEST DOCK SZABADKIKÖTŐ LOGISZTIKAI ÉS IPARI PARK www.bszl.hu

8 PROLOGIS PARK BUDAPESTGYÁL www.prologisce.eu/hu

9 PROLOGIS PARK BUDAPESTHARBOR www.prologisce.eu/hu

10 HELLOPARKS PÁTYBUDAPEST WEST www.helloparks.com

11 PROLOGIS PARK BUDAPESTSZIGET II www.prologisce.eu/hu

12 ÁTI DEPO KÖZRAKTÁROZÁSI ZRT. www.atidepo.hu

Depo Intermodális Társas Logisztikai Központ Kft. 2045 Törökbálint, Hosszúrét (23) 338-044 www.depo-raktarvaros.hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 www.prologisce.eu/hu

CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

Budapesti Szabadkikötő Logisztikai Zrt. 1211 Budapest, Weiss Manfréd út 5–7. (1) 278 3502 www.bszl.hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 www.prologisce.eu/hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 www.prologisce.eu/hu

HelloParks Partnership C.V. Magyarországi Fióktelepe 1082 Budapest, Futó utca 47–53. (70) 654-4444 www.helloparks.com

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 www.prologisce.eu/hu

ÁTI DEPO Közraktározási Zrt. 1136 Budapest, Pannónia u. 11. (1) 305-2200 www.atidepo.hu

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estate funds (100)

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László Ákos Ignát Mónika Nagy

8151

2051 Biatorbágy, Verebély László utca 2. (30) 111-1023 leads.hu@ctp.eu

1239 Budapest, Európa utca 6. (1) 289-6000 bilk@bilk.hu

2045 Törökbálint, Hosszúrét hrsz. 062. (23) 338-044 titkarsag@depologisztika.hu

2310 Szigetszentmiklós, Leshegy utca 30. (1) 577-7700 zhunyadi@prologis.com

Dr. Ferenc Gondi Tímea Pekár

Cseh

Rudolf Nemes

2225 Üllő, K-Sped körút 17. (30) 111-1023 leads.hu@ctp.eu

1211 Budapest, Weiss Manfréd út 5–7. (1) 278-3502 info@bszl.hu

2360 Gyál, Gorcsev Iván utca 7. (1) 577-7700 zhunyadi@prologis.com

1225 Budapest, Campona utca 1. (1) 577-7700 zhunyadi@prologis.com

2071 Páty, Tarsoly utca (70) 654-4444 info@helloparks.com

2310 Szigetszentmiklós, hrsz.: 12718/2. (1) 577-7700 zhunyadi@prologis.com

József Földházi Mária Frühwirth Szabóné Györgyi Szabó Kovácsné 1136 Budapest, Pannónia utca 11. (1) 305-2201 mail@atidepo.hu

2225 Üllő, Zsaróka út 8. (1) 336-2270 contact-hu@glp.com

2151 Fót, Akácos (1) 451-4760 egbp@wing.hu

www.ctp.eu

17 HELLOPARKS FÓT - BUDAPEST NORTH www.helloparks.com

CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

HelloParks Partnership C.V. Magyarországi Fióktelepe 1082 Budapest, Futó utca 47–53. (70) 654-4444 www.helloparks.com

Ferenc Gondi Tímea

2310 Szigetszentmiklós, belterület hrsz. 13400 (30) 111-1023 leads.hu@ctp.eu

2151 Fót, Telkes Mária út (70) 654-4444 info@helloparks.com 18 HELLOPARKS MAGLÓDBUDAPEST AIRPORT www.helloparks.com

HelloParks Partnership C.V. Magyarországi Fióktelepe 1082 Budapest, Futó utca 47–53. (70) 654-4444 www.helloparks.com

(30) 111-1023 www.ctp.eu

Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

CTPARK VECSÉS www.ctp.eu

CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u.

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22 LOGIN BUSINESS PARK www.loginbusinesspark.hu WING Zrt. 1095 Budapest, Máriassy u. 7. (1) 451-4760 www.wing.hu

Ferenc Gondi Tímea Pekár

Dr. Ferenc Gondi Tímea Pekár

Dr. Ferenc Gondi Tímea Pekár

2234 Maglód, Dóra Tivadar utca (70) 654-4444 info@helloparks.com

2900 Komárom, Mylan utca (30) 111-1023 leads.hu@ctp.eu

2800 Tatabánya, Szarkaláb út (30) 111-1023 leads.hu@ctp.eu

2220 Vecsés, Schwarz Dávid utca (30) 111-1023 leads.hu@ctp.eu

1044 Budapest, Ezred utca 1–3. (1) 451-4760 ipari@wing.hu 23 GLP SZIGET LOGISZTIKAI KÖZPONT www.glp.com/eu GLP Sziget Kft. 1027 Budapest, Horvát u. 14–26.

Stefan Sova

24 PROLOGIS PARK BUDAPEST M1 ww.prologisce.eu/hu Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 www.prologisce.eu/hu

25 EAST GATE PRO BUSINESS PARK www.egbppro.hu WING Zrt. 1095 Budapest, Máriassy u. 7. (1) 451-4760 www.wing.hu

CTPARK BUDAPEST

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Dr. Ferenc Gondi Tímea Pekár

2310 Szigetszentmiklós, Bevásárló utca 1. (1) 336-2270 contact-hu@glp.com

2071 Páty, Szent József utca 4. (1) 577-7700 zhunyadi@prologis.com

2150 Fót, Kopp Ferenc út 4. (1) 451-4760 info@wing.hu

2330 Dunaharaszti, Gábor Áron utca 1. (30) 111-1023 leads.hu@ctp.eu

6000 Kecskemét, Daimler út (1) 481-4530 sales@innovinia.hu

5–7. (1) 278-3502

CTPARK SZOMBATHELY www.ctp.eu CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

35 DÉL-PESTI ÜZLETI PARK www.grandum.hu

Grandum Ingatlankezelő Kft. 1134 Budapest, Kassák Lajos utca 19–25. (1) 888-4120 www.grandum.hu

36 IGPARK POLGÁR igpark.hu Innovinia 1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 innovinia.hu

37 DEBRECENI LOGISZTIKAI KÖZPONT ÉS IPARI PARK www.trans-sped.hu

38 IGPARK KECSKEMÉT WEST igpark.hu

39 CITYPOINT 9 LOGISZTIKAI PARK www.otpingatlanalap.hu

40 DATA34 INGATLANHASZNOSÍTÓ KFT. www.bszl.hu

Trans-Sped Kft. 4030 Debrecen, Vámraktár utca 3. (52) 510-120 www.trans-sped.hu

Innovinia 1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 innovinia.hu

Icon Real Estate Management Kft. 1026 Budapest, Riadó utca 5. (70) 662-5639 www.iconrem.hu

DATA34 Ingatlanhasznosító Kft. 1211 Budapest, Weiss Manfréd út 5–7. (1) 278-3502 www.bszl.hu

41 IGPARK TISZAÚJVÁROS igpark.hu Innovinia 1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 innovinia.hu

42 LOGSTAR PARK VÁROSKAPU www.logstar.hu Biggeorge Property 1023 Budapest, Lajos utca 28–32. www.logstar.hu

43 M5-GYÁL BUSINESS PARK www.otpingatlanalap.hu

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1211 Budapest, Weiss Manfréd út 5–7. (1) 278-3502 info@bszl.hu

9700 Szombathely, Vásártér utca 1. (30) 111-1023 leads.hu@ctp.eu

1097 Budapest, Táblás utca 36–38. (1) 888-4120 info@grandumpm.hu

4090 Polgár, Hajdú utca 40. (1) 481-4530 sales@innovinia.hu

Zsolt Fülöp Olivér Sziller Zsuzsa CseriSzilágyi

4030 Debrecen, Vámraktár utca 3. (52) 510-120 info@trans-sped.hu

6000 Kecskemét , (Kadafalva) Heliport (1) 481-4530 sales@innovinia.hu

1097 Budapest, Gubacsi út 32. (1) 236-6400 alapkezelo@ otpingatlanalap.hu

Ottó Cseh

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4 Socialite

District VII Street Art: When Walls Come to Life

No matter how many times I stroll around Budapest’s Jewish Quarter, District VII, it seems a mural I’ve never spotted before catches my eye. According to Attila Höfle, founder of Budapestflow Walking Tours, the Seventh is the best place to see murals and street art in the city.

Part of the Scene

“We started when street culture in the form of DJing, graffiti art and skateboarding was beginning in Budapest,” he tells me. “I wasn’t a graffiti artist, but I liked being part of the scene. I saw that there were many people who wanted a painting for their home, restaurant or company, but no one was putting them together with the artists. I made flyers and then a website to do precisely this. Business took off, and we became a professional group.”

“The big murals are commissioned by the District VII municipality and the government or created during street art festivals, which is why 95% of the good ones are there,” Höfle says. He moved to Budapest from Szombathely (about 220 km southwest of Budapest by road, near the Austrian border) 27 years ago to study.

“I fell in love with the city on my first day here and started to explore on my own,” he tells me. After studying and working in a different field, “I decided to combine my passion with my work and create walking tours that included street art rather than showing tourists sights they could see on regular walking tours.”

Budapestflow’s alternative tours include showing tourists the murals of the Seventh and pointing out examples of sticker and paste-up art while telling the stories behind them.

The murals are made by Hungarian companies such as Neopaint Works but also by well-known international artists. Höfle’s two favorite murals happen to be by Spanish artists.

“Motivation is a Wonderland” at Kertész utca

27

by Dan Ferrer is a slightly warped take on Alice in Wonderland, intended to show that children are the future and need nurturing. It was painted in 2017. Ferrer’s work also adorns walls in London, Milan, New York, and Rome.

Painted by Spanish artist Okuda San Miguel, “Angel of Budapest” is at Dob utca 4, part of the World War II Jewish Ghetto. The angel is Spanish diplomat Ángel Sanz Briz, who is credited with saving around 5,000 Hungarian Jews from being murdered during the Holocaust. “This is a beautiful, colorful mural,” Höfle says. “It’s very well executed, so it’s great to look at. But it also makes us remember the lessons of history.”

Mash-up Cartoons

Unlike the murals, sticker and poster art isn’t commissioned. It’s made by artists who choose their own subjects, which can be satirical and political. Höfle’s favorite street artist is 0036Mark, named for Hungary’s international telephone country code, who makes “mash-ups using cartoon characters from the 1980s communist era and allusions to paintings and movies.”

For 0036Mark and Höfle, the change from communism to capitalism happened in their childhood. The golden age of Hungarian cartoon-making morphed into a time when Hungarians gorged on Western blockbuster movies, duplicated time and again on videocassettes. Cartoons giving way to ’90s action, sci-fi and horror movies symbolize regime change.

The work of 0036Mark is colorful and intriguing, but without Höfle interpreting it, I wouldn’t have got the point. That context is a good reason to take his tour. “We share generational memories about this time of great change,” he says.

If you’re looking for something more underground in District VII, keep an eye out for the stenciled logo of the Magyar Kétfarkú Kutya Párt (The Hungarian Two-Tailed Dog Party) which criticizes the government and the political elite using street art.

All over the Western world, street art has risen out of its underground origins to transform urban landscapes and influence real estate markets. Cities worldwide have realized that street art revitalizes and beautifies neglected neighborhoods, increasing property values, attracting tourists and foot traffic to more out-of-the-way locations and strengthening community identity.

The Mayor of District VII was no doubt well aware of the potential appeal of colorful murals on his storied, bullet-scarred walls when he began forging a close relationship with Neopaint Works, responsible for around 20 murals in the district and founded by Barnabás Jankovits in 2005.

From the start, Jankovits and his crew wanted to work on big walls. Around 2010, when street art was often regarded as vandalism, the forward-looking mayor of the district got in touch. The first two murals Neopaint made attracted plenty of interest from a Hungarian media, hungry for something new, and the company’s fortunes transformed. Since then, Neopaint says it has forged an excellent relationship with the District VII municipal council. Murals are made by a core team of four artists that can expand to as many as

for a large-scale project. Three days are spent preparing, making highly accurate stencils and choosing a color palette, and the actual painting takes around four days, surprisingly quick.

As Jankovits says, somewhat ruefully, “It’s the bureaucracy that’s tough. For example, it took four months to get the permissions we needed for our tribute to pianist György Cziffra at Batthyány tér metro station on the centenary of his birth in 2021.”

The tribute was Neopaint’s idea. “It’s a busy metro station, and this is a great way to make Hungarian heroes and cultural figures better known. Young people and tourists who don’t know who someone like Cziffra is respond to a mural in a way they won’t to a monument.”

Neopaint is looking to get into the burgeoning new market for advertising murals. “Companies like Heineken understand how eye-catching murals are and now want to advertise more artistically,” Jankovits explains. “It’s big in Western countries and Poland, but agencies here are only now waking up to the possibilities. We want them to think of us.”

Find out more about street art walking tours at budapestflow. com. You can view Neopaint’s work on its Hungarian-language website: neopaint.hu.

DAVID HOLZER

“Little Girl in a Shawl” was originally commissioned by the UNHCR in Hungary in the Gozsdu Courtyard in Budapest.

Photo by Neopaint Works

Photo by Attila Höfle, Budapestflow

Liszt Academy Celebrates 150th Anniversary

András Csonka, program director and acting director of communications of the Liszt Ferenc Academy of Music and Cultural Center, which celebrates its 150th anniversary this year, gives the Budapest Business Journal insight into some of the events that will mark this anniversary year.

Culture Matters

A regular look at culture issues in Hungary and the region

will be the Keller and Kelemen Quartets, with the youngest generation represented by the Korossy Quartet. All four quartets met and formed while their members were students at the academy.

Among other highlights, music historians János Mácsai and Szabolcs Molnár will discuss the academy’s past one and a half centuries. A series of concerts by students called “The Hidden Treasures of the Liszt Academy” (with subtitles such as “Temperaments from the Last 150 Years” and “Choral Works from the Alma Mater”) will present some rarities by composers from the history of the Composing Faculty. A concert series started on March 23 with the internationally acclaimed Takács Quartet, formed 50 years ago, presenting the storied traditions of the Hungarian string quartet. Other groups in the series

The “Legendary Concerts” stand out as a special occasion among the fall events. The series will focus on the piano. Gábor Farkas will evoke the spirit of the virtuoso István Thomán, who died in 1941. Dénes Várjon will pay tribute to the legacy of Géza Anda. Dezső Ránki will give a recital recalling his debut concert in 1970, while János Balázs will recreate a solo concert first given by György Cziffra in 1956.

The Birth of Music

Higher Education

Founded in 1875, the academy is named after the renowned composer and pianist Liszt, who initiated the

in Brief News Culture

SopronFest Returns in June With Hundreds of Events

Organizers said hundreds of events will take place across 75 venues during the third SopronFest, running from June 1 to 8 in Sopron (220 km west of Budapest by road). Headliners performing at Lőverek over Pentecost weekend include Timmy Trumpet, Parov Stelar, Worakls, Dub FX, Halott Pénz, Majka, Ákos, and Desh. This year’s SopronFest is themed around

happiness, with many events exploring what it means to different people and how it can be achieved in various situations. The Telekom PodcastFest will feature more than 20 programs. The festival’s opening on June 1 includes Gergely Horváth hosting Zsuzsa Rakovszky, Rita Cserbik, and András Lovasi in a discussion titled “Happy Festival!” Péter Radnai will interview Tamás Vitray in the first “Influenszerek” series, while Márkó Linczényi and Barna Turai will bring their “Síkideg” podcast to Sopron.

start of higher education in music in Hungary and in 1879 moved to Andrássy utca (to the building now called the Old Academy of Music).

The Liszt Academy launched its concert center in 2013 after extensive renovations of the main venue.

Today, the Liszt Academy Concert Center’s primary responsibilities are serving activities connected to musical education, such as exam and diploma concerts, and hosting concerts by the student orchestra. It also rents out its halls for Budapestbased orchestras and organizes its own concerts, presenting the most exciting Hungarian and international musicians, chamber music groups and orchestras to the Hungarian audience.

Besides the famed and completely renovated Art Nouveau main building (built between 1903 and 1907) and

Cellist Miklós Perényi to Perform at Pannonhalma Abbey

World-renowned Hungarian cellist Miklós Perényi will perform three of Johann Sebastian Bach’s cello suites at a solo concert at the St. Martin Basilica of Pannonhalma Abbey (120 km northwest of Budapest by road) on April 11, organizers said in a statement issued on Saturday. Perényi will present Suites No. 1 in G major, No. 2 in D minor, and No. 3 in C major. Born in 1948, Perényi was a child prodigy who began studying at the Budapest Music Academy at age seven and debuted in concert at nine. He has taught at the Academy since 1974 and performs a repertoire ranging from baroque to 20th-century music. Perényi is a recipient of the Kossuth and Liszt

its sumptuous Grand Hall concert soace where “music is made visible,” the Liszt Academy also runs the Old Academy of Music, where you can find the Liszt Memorial Museum. This venue also serves as the base for the harpsichord, organ and church music training programs.

The Liszt Academy was awarded the Europa Nostra (2015) and the European Heritage Award (2016) and continues its globally recognized mission not just in this commemorative year but also beyond, at home and worldwide.

For information in English, concert dates and ticket prices, visit concert.lisztacademy.hu/ concert-series-2025-spring

Prizes, among other honors. His 2005 recording of Beethoven’s complete works for cello, made with pianist András Schiff, won the Cannes Classical Award.

AgMin Warns Cultured Meat Threatens European Way of Life

Food production cannot be separated from farms, Minister of Agriculture István Nagy said in a statement issued on March 19 following the start of a parliamentary debate on draft legislation that would ban cultured meat. Nagy warned that disconnecting food production from farms would lead to the loss of tradition, culture, and identity, leaving people rootless. He added that introducing cultured meat to the market would threaten the European way of life.

ÉVA BODOR

András Csonka, program director and acting director of communications.

Photo by Andrea Felvégi

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

Swiss-Hungarian Chamber of Commerce (Swisscham)

The Embassy of Switzerland in Hungary, in close cooperation with the Hungarian Geothermal Association, Swisscham and the Budapest University of Technology and Economics, invites guests to the “Swiss-Hungarian dialogue on energy communities” workshop. It will focus on viable solutions to tackle the increased cost of energy at the local level. A working Swiss model of an energy community will be presented, and an exchange of experiences between Switzerland and Hungary will follow, including the regulation, technical conditions and financing of energy communities. The workshop will aim to present practical solutions to the greening of the energy mix at the level of local communities and to promote technical-level interaction and networking among Swiss and Hungarian stakeholders interested in sustainable renewable energy schemes (especially geothermal). The event will include welcome coffee and tea, a welcome by Ambassador of Switzerland Jean-François Paroz, Swiss and Hungarian presentations, and a panel discussion, followed by a buffet lunch • When: Friday, April 25, 9 a.m.-1:30 p.m. • Where: 1st floor meeting room, Budapest University of Technology and Economics, Műegyetem rkp. 3, Budapest 1111 • Fee: members free; non-members: HUF 15,000 / person (0% VAT)

Belgian Business Club in Hungary (Belgabiz)

Belgabiz, in collaboration with Art is Business, presents the 2025 spring issue of Art is Business magazine, highlighting Belgium’s unique regional approach to cultural funding. Join us for the launch event, featuring Belgian companies and artists, a roundtable discussion, and a keynote by Belgium’s ambassador, offering insights into business and cultural collaborations. • When: Thursday, April 24, 6-9 p.m. • Where: Apollo Gallery (Corvin Palace, Blaha Lujza tér 1, entry from Stáhly utca) • Fee: Belgabiz members and Art is Business Circle of Friends, free; non-members HUF 3,900 + VAT

Italian Chamber of Commerce for Hungary (CCIU)

The Ospitalità Italiana Awards will take place at the Millennium da Pippo restaurant in Budapest this month, celebrating businesses earning the Italian Hospitality certification. Promoted by Istituto Nazionale Ricerche Turistiche (National Institute of Tourism Research) and the Italian Chambers of Commerce abroad, the recognition, presented in Hungary by the CCIU, acknowledges businesses that maintain the highest standards of Italian hospitality, ensuring authenticity, quality, and commitment to “Made in Italy” values. The event coincides with the International Day of Made in Italy, an initiative the Italian Ministry of Enterprises and Made in Italy promotes, celebrating Italian excellence in gastronomy, craftsmanship, and services. Throughout the evening, attendees can network with industry professionals, business leaders, and chamber members. In addition to the awards presentation, an exclusive Italian aperitivo will be offered, featuring authentic Italian flavors and fine wines. Live music will help create an atmosphere celebrating Italy’s rich gastronomic heritage. Among the honored establishments, “Millennium da Pippo” and “Terzo Cerchio” will be recognized as certified ambassadors of Italian hospitality. • When: Tuesday, April 15 • Where: Millennium da Pippo, Andrássy út 76, Budapest 1062

• Fee: Members, HUF 2,000; non-members, HUF 3,000

Canadian Chamber of Commerce in Hungary (CCCH)

In today’s digital landscape, businesses face increasing cybersecurity threats, yet many remain unaware of the vulnerabilities in their communication channels. To address this critical issue, an exclusive seminar on cybersecurity and secure communication will be organized by the CCCH, offering business leaders, IT professionals, and security experts valuable insights into protecting sensitive data. The seminar will explore the hidden risks of using mobile phones and unsecured commercial platforms for corporate communication. Cybersecurity specialists will break down common security pitfalls, demonstrate real-world breaches from forensic investigations, and provide practical strategies to safeguard confidential business information. Attendees will gain a deeper understanding of how secure communication practices align with NIS2 compliance requirements, a crucial aspect of regulatory cybersecurity frameworks. Check ccch.hu for registration details.

American Chamber of Commerce in Hungary (AmCham)

On March 25, AmCham Hungary, in cooperation with EY, hosted a highly informative meeting to discuss the EU AI Act and its implications. The event featured guest experts: George Tilesch, chief AI expert at EY AI Confidence, Adrienn Piskóti, senior lawyer, EY Law, responsible for data protection and digital law, and Áron Badinszky, AI regulatory expert at EY AI Confidence, who provided an overview of the AI Act regulation, along with the challenges, obligations, and opportunities it presents for businesses. The discussion highlighted key compliance deadlines, starting with Feb. 2, when AI Act prohibitions and AI literacy obligations took effect. This initial phase requires companies to assess and certify their AI systems to meet foundational compliance standards, particularly focusing on AI’s safe and responsible use. Although the AI Act still requires further elaboration, particularly regarding the Code of Practice, companies should not delay their preparations for the next critical deadline: Aug. 2, 2026. By this date, the act will fully apply to high-risk AI systems, requiring organizations to implement comprehensive risk management, monitoring, and governance practices. To ensure sustainable, competitive business operations in the long term, companies must embed AI solutions as a fundamental part of their “company DNA.” The experts also addressed relevant Hungarian legal implications, emphasizing the importance of staying up-to-date with local regulatory requirements to avoid potential legal risks. Non-compliance could result in substantial penalties, including financial fines, reputational harm, and operational limitations. The discussion concluded that successful adaptation requires collaboration between legal, technological, and business experts to navigate the complexities of the AI regulatory landscape.

Multi-chamber Event

An “Energy Efficiency and Sustainability Workshop” was held at the Residence of the Ambassador of Sweden in Budapest. The event was co-organized by the German Chamber of Commerce and its Knowledge Center in collaboration with the Netherlands-Hungarian Chamber of Commerce, Advantage Austria, the Swedish Chamber of Commerce in Hungary and the SwissHungarian Chamber of Commerce. The event opened with welcome remarks by Ambassador Diana Madunic of

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH invites guests to its next Hot Topic conference, round table discussions on labor productivity, and the wage rise program based on improving company efficiency and productivity. The keynote speaker will be Deputy State Secretary for Labor Market, Protection and Inspection Viktória Zöld-Nagy. • When: Tuesday, May 20, 9-11:30 a.m. • Venue & Fee: to be announced.

The CCIFH, in cooperation with the Canadian Chamber of Commerce in Hungary, also invites guests to the first event of its renewed communication club, initiating a roundtable discussion on “The Success of Premium Hungarian Brands Abroad: Brand Management in an International Environment.” Experts from internationally successful Hungarian brands will share their best practices, including Anita Benes, founder and lead designer of Daalarna; Sára Palcsó, managing director of Adrienne Feller Cosmetics Zrt.; Attila Simon, managing director of Herendi Porcelánmanufaktúra Zrt.; Zoltán Roy Zsidai, owner and managing director of Zsidai Group, Réka Vágó, managing director and creative director of Rekavago. The moderators will be Dávid Robák, managing director and admiral of NextShip, and Anna Tamási, director of CoreContent Bt. • When: Thursday, May 8, 9-11:30 a.m. • Venue: Spíler Buda (at MoM Park), Alkotás u. 53, Budapest 1123. • Fee: Members, HUF 9,500 + VAT; non-members, HUF 14,200 + VAT.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

On March 28, DUIHK announced the winners of its 2025 Vocational Education and Training Awards at the Deutsche Schule Budapest. In the “Motivation” category, the Petrik Lajos Technical College of Budapest Lajos Technical College of Bilingual Education received the award for the project “#petrikcodeweek Coding for all: Opening the Doors to a Digital Future for Teachers, Students and Parents.” In the “Cooperation” category, the Szeged SZC Tóth János Mórahalmi Vocational School and Szilágyi Mihály College received the award for the project “The Mórahalmi Vanilla Project: Dual Education at its Maximum.” They also received the award in the “Innovation” category for their project “InnoTeam: Together for the Technology of the Future.” The jury of seven independent experts also awarded a special prize to József Sándor Gonda, a self-employed businessman, for his project “We Bring Color to Your Future.” A record number of 65 companies and institutions submitted entries this year.

the Embassy of Sweden in Hungary and Slovenia, who highlighted the importance of cooperation between European companies to improve competitiveness and Julia Lipovecz, director of Swisscham Hungary, who called attention to the fact that energy efficiency is no longer a matter of choice, but a strategic imperative. Even a 10% reduction in energy consumption can result in tens of millions of euros saved, an impact that is both economically and environmentally vital. Through insightful presentations and engaging Q&A sessions, the forum provided

a platform to explore innovative solutions, best practices, and real-life applications already driving sustainable transformation across various industries. High-level company representatives from Atlas Copco, Qvantum International, ABB, Carbon.Crane, Equans, and Wienerberger shared their expertise on topics ranging from compressed air heat recovery and digital carbon footprint tracking to hydrogen and circular energy systems. The presenters were Mattias Holmstedt, Lars Bierlein, Péter Ivanics, György Huszics, Krisztina Kottmayer, János Prugberger, and Vaskó Péter.