lh x cw market report A4_23.03.02 v34 interactive72

MODERN LOGISTICS IN HUNGARY

The vast majority of Hungary’s modern logistics space is concentrated around Budapest, along the M0 ring road. Around 70% of the total stock of around 4.6 million sqm built for rent is located in the Greater Budapest region. The overall Hungarian market is one of the smallest in the region, with one of the lowest per capita stock levels and well below the regional average in Central Europe. This indicates growth potential for Hungarian regional markets around major logistics centres such as Debrecen, Győr, Székesfehérvár and Kecskemét. The Greater Budapest region is 3.1 million square metres in size, which compares well with the

markets of Prague and Bucharest. Looking at demand levels, Budapest has the third highest demand levels in the regional capital market, ahead of Prague. Looking at the Hungarian developer market, we see that before the Global Financial Crisis, the market was dominated by Prologis. Their competitors were mostly relatively small, independently owned schemes. This near monopoly has been broken in recent years with the emergence of other global players such as Logicor and GLP, and domestic and regional competitors such as CTP, WING, GLP and Hello Parks.