TOP 50 EXECUTIVES
Published in 2024 • EDITOR-IN-CHIEF: Robin Marshall • Editorial Content by
ESTATE EDITOR Gary J. Morrell • CONTRIBUTORS: Annamária Bálint, Bence Gaál, Mihály Kovács • LISTS: BBJ Research (research@bbj.hu) •
Should be submitted in English to news@bbj.hu • LAYOUT: Zsolt Pataki • COVER PHOTO: The new building of the Museum of Etnography, which opened to the public in May 2022. • PUBLISHER: Tamás Botka, Business Publishing Services Kft. • Address:
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Foreword
Does the real estate business matter? Beyond the not insignificant fact of putting a roof over our heads, whether in the office, at home or, increasingly, a mixture of both as we embraced our hybrid future? I don’t mean to sound flippant; the answer is a resounding “Yes.” Apart from anything else, hitting targets to reduce global warming will be impossible without real estate, in the most broad and general of interpretations, doing an awful lot of the heavy lifting. Why? Well, together, building operations and construction account for nearly 40% of global energy-related CO2 emissions, according to a Global Alliance for Buildings and Construction report based on 2020 data. That may now be four years ago, but the statistic is not, as far as my uneducated eye can gauge, controversial. Indeed, several real estate executives featured in this publication cite it or something very close to it.
The Global Status Report for Buildings and Construction, a flagship publication of the United Nations Environment Program, found in a report published on March 7, 2024, and based on 2022 figures, that energy demand and emissions from the building and construction sector represent over a fifth of global emissions. In 2022, buildings accounted for 34% of global energy demand and 37% of energy and process-related carbon dioxide emissions. The report quotes Inger Andersen, the UNEP Executive Director: “There is no credible path to address climate change without a fundamental shift in the building and construction sector.” So, no pressure then.
I don’t mention any of this to create a rod to beat the back of our real estate executives, which would, in any case, be a pretty odd tactic for a publication dedicated to them. I cite the figures to underscore how vital the sector is to this planet and everyone on it. In other words, you should be interested in the people who run our real estate businesses, who build the offices we work in, and who must simultaneously protect Budapest’s architectural inheritance and create a modern, livable cityscape in which residents, workers and tourists can all find a home. In this publication, we seek to chart how they are doing just that, with specially commissioned and curated editorial content exploring the office, industrial, hotel and investment sectors, as well as looking at the rise of ESG in real estate and exploring the tensions in the architectural development of Budapest. We feature a helpful listings section detailing the leading companies, their business results and points of contact. Between those two sections, you will find the real meat of this publication: the biographies of many of the sector’s leading personalities. Find out what drives and inspires them and how they see the industry’s future in 2024 and in years yet to come. I hope you find it useful and informative because what these people, their colleagues and their businesses do matters on so many levels.
Robin Marshall Editor-in-chief
Office Developers Need to Adapt to New Realities
Building in the Budapest office market is limited as developers pursue cautious strategies. Firms are not initiating new projects in the uncertain geopolitical, cost and demand environment. However, established foreign and Hungarian developers are continuing some ongoing larger schemes. Indeed, there could be a shortage of contiguous quality sustainable spaces in Budapest in the near future.
With significant prelease requirements the norm, the market favors those developers able to finance projects from their own resources. However, they typically require an exit strategy with a sale to an investor at a chosen point in the development cycle. As demand has been falling overall, vacancy is rising, although simultaneously, as the number of developments in the pipeline is also falling, there are concerns over the
availability of larger contiguous, well-located and ESGcompliant spaces in the longer to medium term. Most analysts agree that there is a continuing demand for modern office space in Hungary and the CEE region.
“The Budapest office market has changed a lot in recent years. Tenants are working more in a hybrid method; however, it is usually a long-term target to go back to ‘presence’ work
Artist’s rendering of the Dürer Park project.
Tenants Demanding Highly-specified, Sustainable Industrial Logistics Spaces
The industrial market is booming, with leading regional industrial park developers and operators and Hungarian players present in an increasingly active market. That has grown on the back of increasing logistics demand in the COVID-19 and post-pandemic environment and industrial requirements to meet significant FDI, notably in the electric vehicle and EV-related industries.
The market is continuing to thrive despite concerns over moderating demand. The industrial sector was initially centered around the Greater Budapest area, but industrial hubs have now been established across the country, providing badly needed economic development and employment outside the capital on the model of industrial markets elsewhere in Central Europe. All players must develop
in line with the demand for more highly-specified and sustainable industrial and logistics spaces.
“After years of rapid growth, rents will not increase as quickly as before. Developers have already reacted since some projects have already been put on hold or timing has been modified,” says Máté Szoboszlay, partner for business development and transactions at Faedra Group. “As for the breakdown of the demand, all sectors are represented,
CTPark Budapest West is located just outside the capital at Biatorbágy.
Returning Guest Night Numbers Make Hotel Sector Attractive Again
The hotel and hospitality sector is once again regarded as an attractive development and investment option. According to Oxford Economics, overnight stays in Hungary are expected to achieve pre-COVID levels in 2024. Despite the perceived complexities of hotel development compared to more established market sectors such as office and industrial, where income can be achieved through long-term leases, hospitality is successfully attracting developers and investors from those more traditional commercial property sectors.
In a reflection of the popularity of the market sector, investors are concluding long-term leases or franchise partnerships with leading branded international hotel operators, who provide the expertise needed for day-to-day operations, leaving owners able to concentrate on asset management. Although several hotel projects have been put on hold or are subject to delays due to the complexities of development, the cost of financing and rising construction and operational costs, there is still a significant hotel pipeline in Budapest, with several international brands entering the Hungarian market and a number of construction projects visible around the city.
“Altogether, approximately 3,000 hotel rooms are in the pipeline for the next five years, comprising over 22 hotel projects. The expansion/improvement of Budapest Airport and its accessibility, the developments in the Castle District will improve accessibility and attractiveness,” comments Attila Radvánszki, director of the hospitality consultants, Horwath HTL Hungary.
“Over the long term, Budapest will likely see sustained growth due to continuous investments in tourism infrastructure, increasing international connectivity, and the city’s strategic marketing initiatives. The expansion of Budapest’s convention and conference facilities will further bolster demand from the MICE segment. With increasing geopolitical tensions in the region and across the globe, Budapest will not be immune to potential black swan events. However, the events of the last few years proved the destination’s ability to quickly bounce back from any external crisis situation,” Radvánszki adds.
Budapest’s popularity as a tourist destination remains robust, and it continues to be one of the most popular cities in the
region, alongside Prague and Vienna, according to Robert Székely, hospitality and leisure expert at the consultants Newmark HTL. “Notably, in 2023, the RevPAR in Budapest was higher than in Prague. According to forecasts, passenger traffic at Ferenc Liszt International Airport will return to prepandemic levels in 2024. The city is ranked among the top conference destinations, has a rich history, stunning architecture, and unparalleled cultural attractions. It has also consistently demonstrated its ability to host successful largescale sporting events and is home to one of the largest summer festivals. With these strong fundamentals, the sentiment about Budapest’s tourism outlook is very positive,” Székely believes.
“The largest impact on tourism in Budapest could come from the state’s purchase of Ferenc Liszt International Airport. This acquisition could lead to infrastructural redevelopments at the airport, as well as the long-awaited railway connection between the airport and the city center. Meanwhile, hotel supply development is continuing: hotel brands such as Kimpton, St. Regis, Radisson Collection, Voco, Vignette Collection, Moxy, Mandarin Oriental, So, and Swissotel – just to name a few – are entering the market, resulting in a differentiated supply,” he adds.
GROWING PORTFOLIO BRAND
In a new mid-level Budapest project, IHG Hotels & Resorts announced at the Hotco conference in February its first 170-room Holiday Inn & Suites property in Europe with the signing of Holiday Inn & Suites Budapest Centrale, part of its Holiday Inn Hotels & Resorts brand. It is set to open in late 2026 within a new mixed-use development located directly above the Puskás Ferenc Stadion metro station
Hungarian and Regional Investment Markets in Transition
Hungary has a strong pipeline of asset-grade, sustainable commercial real estate products, notably in the office, industrial and hotel sectors. The country also provides a significant yield premium on Western Europe, Poland, and the Czech Republic for international institutional investors seeking less expensive yet high-quality, fully-let sustainable assets.
A thriving investment market is also a necessity for a flourishing development market in that building owners require an exit strategy at a convenient point in the development cycle and at a favorable price for the vendor; this is notably the case for those funding development through their own resources and who therefore need to develop, lease and sell assets successfully. However, the markets in Hungary, as elsewhere in the CEE region, are going through a price correction, and therefore, both buyers and vendors are playing a waiting game concerning investment strategies.
“The investment market is quiet as investors are taking a wait-and-see position as nobody wants to take a risk
and justify an investment deal to a board or colleagues. A fall in interest rates could mark a turnaround in the markets,” comments Benjamin Perez Ellischewitz, principal at Avison Young Hungary.
Péter Számely, head of Real Estate Project Finance at Hypo Noe, echoes this view. “In Hungary, investors are not buying because they think the market value will fall even further and, therefore, they are waiting. The vendors, for their part, do not want to sell because they believe that their property has a higher value than the market is prepared to give. This is already a sign that the market is under correction. Later, when loans
Primark is the latest addition to Hungary's retail scene.
ESG Being Integrated into Complete Building Life-cycle
ESG-compliant features, processes, and sustainability accreditations are now the norm in highend real estate. They have become an essential requirement for tenants, lenders, and investors, and there is a regulatory expectation from the EU and national governments. This applies throughout the project process, from planning through building to an exit strategy with a sale to an investor. All real estate actors and related industries, such as construction, architecture, investment and FM and PM, are now impacted by ESG and must, accordingly, adapt their fundamentals.
“ESG compliance nowadays is very subjective in terms of new real estate developments and existing buildings. The main directives are coming from environmentally-conscious certificates that we all know very well by now, but expressions such as EU Taxonomy, Greenwashing, and GAR (Green Asset Ratio) are the new ones we need to learn and understand,” says Petra Holy, head of office agency at Knight Frank Hungary. “These are relatively well governed by regulations and measures. For new constructions, directives are relatively clear in the regulations for technical and social aspects.
All in all, green certifications, mainly Leed and Breeam, are a big help; however, they are not enough,” she adds. Breeam is the most popular third-party office sector accreditation option, followed by Leed. Regarding interior, office management and design issues, Well and Access4You are increasingly sought. Reflecting the growing concern with ESG-related issues, more building owners strive to improve standing assets by opting for “In-Use” accreditations. Although the major priorities of tenants or office occupiers had been seen as location and rental fees, the recruitment
The Budapest ONE lobby.
Photo by Noguchi & Peters Kft.
Maintaining the City’s Architectural Feel Means Balancing Competing Needs
Budapest faces the challenge of preserving its classic Central European fin de siècle look and atmosphere while developing its role as a modern city, business center, and tourist destination and, indeed, improving it as a pleasant and healthy place to live, work and visit. Meanwhile, industrial players face the challenges of developing in accordance with ever-stricter environmental regulations and locational demands from tenants in both the Greater Budapest area and provincial centers.
Central elements for urban development and architecture include sustainability, Environmental, Social, and Governance issues, EU Taxonomy stipulations, and the necessity of adapting in response to changing societal, economic, and regulatory needs and requirements. Overall, the evolution of ESG will be driven by a combination of market forces, international and national regulatory requirements and broader societal expectations for corporate responsibility and sustainability.
“The term and definition of ESG will likely evolve and adapt to changing societal, economic, and regulatory landscapes. Overall, the evolution of ESG will likely be driven by a combination of market forces, regulatory developments, and societal expectations for corporate responsibility and sustainability. Companies and investors that can adapt to these changes and demonstrate genuine commitment to ESG principles are likely to be better positioned for longterm success,” comments Zsombor Barta, sustainability consultant and ambassador (and a former president) of the Hungarian Green Building Council (HuGBC).
A notable trend in the historical center of Budapest is the redevelopment of fin de siècle Central European buildings into hotels, giving the structures a use-value while at the same time maintaining the classic feel and heritage of the city. “Restoring historic buildings into boutique hotels preserves cultural heritage while offering unique guest experiences. There are
The BudaPart project by Property Market is reimagining a 54-hectare Buda site.
REAL ESTATE EXECUTIVE BIOGRAPHIES
Photo by jamesteohart
REAL ESTATE BUSINESS CARDS
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REAL ESTATE LISTINGS
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Category 'A' and Green Office Buildings
RANKED BY NET OFFICE SPACE
1
2 Budapest ONE www.futurealgroup.com/hu/ projects/budapest-one/
3 AGORA Budapest www.agorabudapest.com
4 Telekom székház www.wing.hu
5 Tópark Be My City www.topark.hu
6 Millennium Gardens www.millenniumgardens.hu / www.trigranit.com
7 Center Point centerpoint.hu
8 Gateway Office Park www.gatewaybc.hu, www.cpipgroup.hu
9 Capital Square www.caimmo.com, www. capitalsquare.hu
10 myhive Átrium Park www.myhive-offices.com/hu
11 Spiral www.mfbingatlan.hu
12
CBRE, Colliers www.cbre.hu, www. colliers.com
& Wakefield Kft., www.
1087 Budapest, Hungária körút 30. (1) 785-5208 info@atenor.hu
1112 Budapest, Boldizsár utca 1~3. (1) 266-2181 office@futurealgroup.com
1138 Budapest, Esztergomi út 31–39. (70) 672-1580 reception@agorabudapest.com
1097 Budapest, Könyves Kálmán körút 36. (1) 451-4760 sales@wing.hu
2051 Biatorbágy, Sasbérc út 1. (1) 382-7560, (70) 370-6666 meszarosg@topark.hu
1095 Budapest, Lechner Ödön fasor 10 B (1) 456-6200 info@trigranit.com
1139 Budapest, Váci út 81–83. (1) 412-3680 leasing@gtcgroup.com
1138 Budapest, Dunavirág utca 2–6. (70) 478-0556 offices@cpipg.com
1133 Budapest, Váci út 76. (1) 501-2800 office@caimmo.hu
1134 Budapest, Váci út 45. (70) 478-0556 offices@cpipg.com
1134 Budapest, Dózsa György út 128-130. (1) 600-6560 info@mfbingatlan.hu
1095 Budapest, Soroksári út 44. (1) 920-2193 erstealapkezelo@erstealapkezelo. hu