Budapest Business Journal: Latest Issue

BSC Office Requirements Now More Sophisticated BSCs & SSCs

As the role of business service centers becomes ever more complex, their office requirements are likewise getting more sophisticated and varied. And that’s before you also factor in the ESG requirements that are now the norm at the high-end of the Budapest and other Central European office markets. 16

Twelve months on from our last interview, China’s Ambassador to Hungary Gong Tao gives us his take on bilateral relations between the two countries and what makes the friendship so deep-rooted.  10 FOCUS

China-Hungary Relations: Mutual Respect and Benefit

Growth Solves Many Issues

Musical Legend

György Kurtág at 100

The 100th birthday of the great Hungarian composer, György Kurtág, on Feb. 19 was celebrated with a festival of his work, the world premiere of his opera, “Die Stechardin,” and the release of “Kurtág Fragments,” a compelling new film by director Dénes Nagy.  20

MNB Holds Rates Amid Iran Conflict

Hungary’s central bank kept interest rates unchanged on March 24, striking a cautious tone as escalating tensions in the Middle East reshape economic expectations. Rising energy prices linked to the Iran conflict have pushed inflation forecasts higher and growth projections lower.  3

India-owned business TCS Hungary was listed at the Court of Registry in 2001, to support one customer with a handful of IT engineers. Today, it has a headcount of some 2,000. General manager Prabal Datta says empowering staff is a big reason for its success. 15

Investors Seen as Exercising Caution at MIPIM

Caution appeared to be the predominant approach to the commercial real estate investment and development markets among delegates at the annual MIPIM 2026 CRE and investment expo in Cannes.  7

EDITOR-IN-CHIEF: Robin Marshall

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

LISTS: BBJ Research (research@bbj.hu)

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1075 Budapest, Madách Imre út 13-14, Building B, 7th floor. Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu

THE EDITOR SAYS

IN PRAISE OF THE CEO COMMUNITY

I will freely and happily admit that I love this time of year, and it’s got nothing to do with the joys of spring. Spring is fine, don’t get me wrong, what with nature sloughing off its winter hibernation and all. That rebirth may be a natural miracle to wonder at, but since I am allergic to tree pollen, it also triggers my hayfever. No, what I much more specifically love about this time of year is that moment when I am standing on the stage in the Grand Ballroom of the Corinthia Hotel Budapest at the CEO Gala, as I will be tonight (assuming you are reading this on Friday, March 27), just before the dining attendants open the doors.

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Why Support the BBJ?

• Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Community Building. Whether it is the Budapest Business Journal itself, the Expat CEO award, the Expat CEO gala, the Top Expat CEOs in Hungary publication, or the new Expat CEO Boardroom meeting, we are serious about doing our part to bind this community together.

• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities. Now, more than ever, factual business reporting is vital to good decision-making.

For more information visit budapestbusinessjournal.com

It is a moment of quiet calm before we let in our guests (“crowd” seems too unsophisticated a word for a black-tie invitation-only gala, especially when those guests are CEOs and diplomats, their partners, and members of the Hungarian Investment Promotion Agency). From the moment the doors open, we are into the action and entertainment, the laughter and applause of what is surely one of the social highlights of the business calendar.

The question I get asked most often about the CEO Gala is whether it is right that the final decision is not made until minutes before the gala begins. And the truthful answer is that really is the case.

I am not a member of the jury, and I am not in the room when the decision is taken. We will present the award for the 12th time this year, and there have been only a couple of occasions when I have welcomed guests from the stage knowing who the winner is, having been pulled aside by an excited jurist and told the news. Generally speaking, though, the jury very wisely takes the view that a secret kept close is a secret best protected. That means I find out when the rest of the ballroom does, as the name is read out. And I prefer it that way, if I am honest.

So, if you are reading this on Friday, March 27, before the gala has begun, spare a thought for Orsolya Erdődy, of the Budapest Festival Orchestra, Péter Noszek, of Nestlé Hungária, and Rezső Rózsai, of KPMG Hungary, who are in the running for the CEO Community Award, and also for Xaviera Sancho, of BT Hungary, Pawel Tokarzewski, of Eli Lilly and Company, and Nikos Zois, of Heineken Hungária, the candidates for the Expat CEO of the Year Award. All six of them will sit through the dinner, enduring the exquisite torture of not knowing who has won until the names are called out. Whomever it is will be a worthy winner.

Robin Marshall Editor-in-chief

THEN & NOW

The black-and-white photo from the Fortepan public archive, dated to 1967, shows a motocross race at Farkashegy in Budaörs, organized by the Central Motor Club of the Hungarian Defense Sports Federation, reflecting an era when motorsports in Hungary were closely tied to state-backed institutions and served both recreational and training purposes. Nearly six decades later, the sport continues to thrive: in the color MTI photograph taken on March 15, 2026, Noel Zanócz, of Van Venrooy KTM Racing, is seen competing in the opening round of this year’s national motocross championship at the Piliscsév MX Track (36 km northwest of central Budapest by road).

Photo by Gergely Jánossy / MTI

Photo by

MHSZ / Fortepan

1News • macroscope

MNB Holds Rates as Iran Conflict Clouds Both Inflation and Growth Outlooks for This Year

Hungary’s central bank kept interest rates unchanged on March 24, striking a cautious tone as escalating tensions in the Middle East reshape economic expectations. Rising energy prices linked to the Iran conflict have pushed inflation forecasts higher and growth projections lower, leaving policymakers balancing mounting risks with heightened uncertainty over the months ahead.

Trends in the MNB Base Rate (2008–February 24, 2026)

As widely expected, the Monetary Council of the National Bank of Hungary (MNB) left the base rate and the interest rate corridor unchanged at its latest rate-setting meeting on March 24. Against the backdrop of escalating tensions in the Middle East, policymakers struck a markedly cautious tone in their communication.

The central bank also released the key figures of its latest Inflation Report. The MNB raised its inflation forecast for this year to 3.8% from 3.2%, and for next year to 3.7% from 3.3%, citing a surge in energy prices driven by the Iran conflict. At the same time, geopolitical developments are expected to weigh on economic growth: the GDP growth forecast for 2026 was revised down to 1.7% from 2.4%, while the projection for 2027 was trimmed to 3% from 3.1%.

According to the Monetary Council’s risk assessment, the baseline scenario outlined in the March forecast is predominantly surrounded by upside risks to inflation and downside risks to growth. The alternative scenarios highlighted by the council assume

a prolonged period of geopolitical tensions, stronger-than-expected consumption growth, and a slower recovery in the external economic environment.

Based on the updated quarterly projections, annual inflation could move above the MNB’s 2-4% tolerance band in the third quarter and even exceed 5% by year-end. It is then expected to decline gradually, returning sustainably to the 3% mid-range target by Q3 2027.

At the post-meeting press conference, MNB Governor Mihály Varga noted that household inflation expectations had moderated prior to the outbreak of the Iran conflict: perceived inflation fell from 12.2% to 9.9%, while one-year-ahead expectations declined from 8.2% to 7.2%.

Unsurprising Decision

“The central bank’s decision did not come as a surprise, as we had anticipated no change in monetary conditions following the February rate cut,” said Dániel Molnár, head analyst at GFÜ Gazdaságkutató.

He added that the decision to pause further easing was driven primarily by external factors and the consequences of the Middle East conflict, despite more favorablethan-expected inflation developments in February. Consumer price growth slowed to 1.4%

in the second month of the year, its lowest level in a decade, supported by a stronger forint and lower fuel prices, which helped contain imported inflation.

Molnár noted that underlying price dynamics also remained subdued, with no signs of significant inflationary

pressure at the start of the year that would have justified maintaining tight monetary conditions. However, the escalation of the Iran conflict has fundamentally altered the outlook. Looking ahead, he stressed that the trajectory of inflation and interest rates remains highly uncertain and will depend largely on the course of the conflict. A prolonged escalation, particularly if accompanied by renewed tightening by major central banks, could force the MNB to raise rates to safeguard financial stability. Conversely, a swift de-escalation and stabilization in energy markets could allow for limited easing later this year, although even in that case, only one or two rate cuts would be likely.

This heightened uncertainty is reflected in the MNB’s communication, which placed increased emphasis on maintaining financial market stability (particularly in the foreign exchange market) as a prerequisite for anchoring inflation expectations and achieving price stability.

Expectations Upended

Analysts at MBH Bank, Márta BalogBéki and Zoltán Árokszállási, noted that while a further rate cut had seemed plausible after February’s decision, the outbreak of the Middle East conflict has upended those expectations. Since the escalation, the euro-forint exchange rate has shown heightened volatility, with the currency moving by several percentage points within a single day. Rising oil and gas prices are expected to push inflation higher in the coming months, with the magnitude of the impact depending on the duration of the conflict.

Source: MNB, National Archives, MTI

Markets have already begun to price in the possibility of an interest rate hike this year, reflecting concerns over inflation risks and the vulnerability of the forint. However, following the latest decision, the currency has not weakened significantly, a development that could signal that markets are not yet forcing the central bank into premature tightening.

“Should the situation in the Middle East deteriorate further, interest rates may eventually need to rise, but we are not there yet.”

“Should the situation in the Middle East deteriorate further, interest rates may eventually need to rise, but we are not there yet,” the MBH analysts said. Looking ahead, they noted that oil market participants continue to expect a gradual stabilization in the coming months. They also pointed out that recent decisions by the Federal Reserve and the European Central Bank have been relatively reassuring, supporting the case for a continued pause by the MNB in the near term.

The analysts expect the base rate to stand at around 6% by yearend, with the possibility of renewed rate cuts emerging toward the end of the year, provided that conditions in the energy market stabilize.

ZSÓFIA CZIFRA

PM Viktor Orbán Faces Biggest Challenge

Since Regaining Power in 2010

Europe’s longest-serving prime minister faces off against a former party insider (and, like him, another former law student-turned politician), Péter Magyar, in the upcoming Hungarian general election.

Hungarians go to the polls on Sunday, April 12, in a general election which is drawing international attention far beyond what the country’s 9.5 million population would normally justify.

“I’ve never known anything like it. So many journalists have been asking for interviews, it’s astonishing,” says local political analyst Zoltán Ranschburg when discussing the interest preceding the forthcoming political battle between Europe’s longest-serving prime minister and his 45-year-old upstart and arch-rival, Péter Magyar.

The reasoning is simple: Hungary under Prime Minister Orbán is seen as a champion of the illiberal, right-wing nationalist trend, and policymakers globally are eyeing whether this can yet expand further, or be restrained and even forced into retrenchment by a democratic opposition emerging organically in the country. Orbán is also the main block on European Union funding plans for Ukraine.

This Orbán-Magyar battle was unimaginable just over two years ago; Magyar emerged in the aftermath of a national paedophile scandal that (inadvertently) destroyed the political career of his former wife, thenMinister of Justice Judit Varga. Within hours of her resignation, Magyar had voluntarily resigned his own positions (all gained through political connections), and began to denounce what he called the corruption and cronyism of the ruling Fidesz elite.

Within five months, Tisza, his adopted party, had won 30% of votes in the European Parliamentary elections, and by Christmas 2024, after hoovering up supporters from most other opposition parties across the political spectrum, it had nudged ahead of Fidesz in most polls.

“Tisza’s most important message from day one of their appearance has been that the state doesn’t work. There are many sub-points, problems with the healthcare, social security system, and railways, but

the government’s election campaign have not gone down well with many voters. Government-linked think tanks, such as the Nézőpont Institute, put Fidesz at 46% voter support, and claimed that Tisza “was unable to cross the 40%” mark in its latest survey on March 19. All independent and left-leaning pollsters give Tisza a significant lead, however, typically of between 8-14 percentage points in their latest assessments. A survey published by the 21 Research Center in early March gave the most proTisza result, indicating Magyar’s party held a lead of 14 points over Fidesz among decided voters. The pollster believes this would mean the opposition party gaining a comfortable simple majority of 115 of parliament’s 199 seats if realised on voting day.

In a photo released by the Prime Minister’s Communications Department, Prime Minister Viktor Orbán is seen at Dózsa György tér in Dunaújváros on March 18, during a stop on his campaign tour of the country.

the general message is that Fidesz has ruined the state. That’s campaign point number one,” says Ranschburg.

National Unity?

Crucially, Magyar has been building his party as one of national unity, in direct competition with Orbán’s own narrative, while denouncing the Fidesz elite as “a bunch of criminals,” Ranschburg adds.

Fidesz initially responded by trashing Magyar as a wife-beating madman leading a party of incompetents acting as “Brussels’ puppets,” Ranschburg says.

Since the first two angles of attack failed to gain traction, the Fidesz campaign has focused on the third, and now portrays Magyar as an ally of a “warmongering [President] Zelenszkyy-Brussels” axis intent on sucking Hungary’s young men and its money into the Russian-Ukraine war.

It is a narrative that has gained traction among core Fidesz supporters, as any observer at the pro-government “Peace March” on March 15 could observe from the placards carried by participants.

Magyar countered, declaring Orbán a traitor and pledging to keep Hungary firmly in NATO, the European Union and on track for membership of the euro.

The governing party has employed all its many resources in its fight to retain power: generous financial benefits have been given to first-time home buyers, mothers, members of the armed forces, and teachers. Low-cost loans and grants have been offered to SMEs, and farmers affected by a scandal-hit wholesale grain buyer in eastern Hungary, involving billions of forints, have been compensated with none of the usual bureaucratic delays.

Solidified Support

Yet, against a backdrop of a stagnant economy and amid a string of new scandals, Tisza’s support has solidified, if not expanded further. Reports of forced prostitution of minors at a state reform school, multiple massive toxic pollution leaks at a battery plant north of Budapest and allegations that Russian military intelligence agents are in the capital to aid

A Fidesz Loyalist Speaks Out “I’ve been a Fidesz fan since the change of system in 1990. Immediately, I voted in the first election, when it was possible, I was 18. I see Viktor Orbán as the greatest politician in Europe and you only get one such born in a century. To me, he’s [a man] of outstanding quality, and up to now, everything he’s said in Europe has been right, we agree completely on everything, in connection with immigration, the war, the [lot].” Attila Kovács, from Érd, attending the pro-government rally on Kossuth tér, March 15.

According to the think tank, Tisza leads in all types of municipality except villages, where Fidesz maintains a fourpoint advantage. Along with Tisza and Fidesz, 21 Research predicts that only the radical-right Our Homeland party would make it into the national assembly. But Fidesz supporters note the polls underestimated their party’s popularity in 2022, and with 18 days to go before the big vote, and war in the Middle East causing convulsions in the oil, gas and financial markets, the outcome on April 12 remains in the balance.

Seat Predictor Boggles the Political Junkie’s Mind with Endless Combinations

For those who wish to experiment with at least some of the millions of possible outcomes in the Hungarian elections, the 21 Research Center, an independent political think tank and pollster, has created its very own Mandátumkalkulátor, or parliamentary seat predictor.

It’s in Hungarian, but it’s easy for anyone to understand how to input the voting combinations into a model that takes into account support for the five leading parties qualified for the party-list vote in 2026.

For example, if the Tisza Party has 48% of the list vote, Fidesz 45%,

Our Homeland 5%, Democratic Coalition 1% and the Hungarian Two-tailed Dog Party 1% (a not impossible result), the prediction in terms of parliamentary seats is 95 for Tisza, 99 for Fidesz and five for Our Homeland.

This example illustrates Fidesz’s built-in advantage in the system; with fewer votes than Tisza, the governing party still emerges as the largest party in Parliament. It also results in a hung Parliament, allowing Our Homeland to be the kingmaker, potentially able to form a

coalition government (albeit with the thinnest of majorities) with either of the two larger parties. The predictor has its limitations; for example, each party must get a minimum 1% of the vote to function. As such, it is only a guide to the likely results, but 30 minutes of experimenting with voting combinations reveals the wild swings possible in terms of seats won with only a minimal change in the input vote percentages.

https://mandatumkalkulator. 21kutatokozpont.hu

Photo by

Ákos Kaiser / Prime Minister’s Communications Department / MTI

Hungary’s Election System: An Enigma Simplified

Akin to their language, Hungarians almost seem to enjoy talking about the “complexity” of their election system, and with good reason. Here is a summary explanation, which covers most, but not all, of the system’s many details.

The Fidesz government created a new election law in 2011. This has one round of voting, while MPs are elected in 106 constituencies, with an additional 93 entering via a “party list” system. Hence, since the 2014 election, parliament comprises 199 seats in total.

The government said the new system is fairer, cheaper and less complicated than previously. Critics, while agreeing that it makes for a smaller parliament, accused the government of gerrymandering the new constituencies in favor of Fidesz. Whatever the truth, many ordinary Hungarians have difficulty fully understanding the system and its electoral implications.

“The system has many majoritarian elements, meaning it favors the largest party, even if it only wins a minority [less than 50%] of the constituency votes,” says Róbert László of Political Capital.

Hungarians with a registered address in the country receive two votes. One is for their choice of candidate for their individual constituency. This is decided on a first-past-thepost system, meaning the candidate with the most votes wins the seat.

The second vote is for the “party list.” Citizens vote for the party of their choice, and those votes are added to a pot. Ninety-three MPs are then chosen according to the proportion of votes in the pot.

5% Threshold

Parties must achieve a threshold of at least 5% of the total nationwide list vote to qualify for seats. If not, they fall out of the list system.

Also added to the pot are the “surplus” votes of the losing candidate(s) in the constituency fights. This practice is quite common in European elections, where the purpose of the list is to compensate the losers in the firstpast-the-post individual constituency vote, and give them at least some representation in parliament.

However, in an element unique to Hungary, the new election system includes what might be called a winner’s “surplus booster” component, whereby the excess votes of the winning candidate are also added to the pot.

To explain, let us consider the result of the vote for the fictitious constituency of Daniváros.

Photo by Róbert Hegedüs / MTI

This “surplus booster” element, believed to be unique to Hungary, greatly benefits the largest party. In the 2022 election, analysts estimate it gave Fidesz five additional seats from the 93 party-list seats.

Hungarians living abroad who still have a registered address in Hungary receive two ballots, but can only cast a vote at a Hungarian embassy or consulate abroad, not by mail.

This result means Ágnes becomes the constituency MP. The votes for Bence and Dávid go to the compensation pot for their respective parties. So too will András’ 1,000 votes, except with such

a small number (only 1.4% of the total in this constituency), the Browns will probably not make the 5% minimum threshold nationwide. In short, the Browns will probably fall out of the race.

Csilla, an independent, does not have a party list, so her 15,000 votes will also be lost. This example illustrates how multiple candidates divide the opposition vote: Ágnes has attracted fewer than half (42.3%) of the total votes, but wins the seat.

Now we come to the winner’s “surplus booster,” a true election Hungarikum. Ágnes only needed 20,001 votes to beat Bence and win this seat. The difference between what the two got results in her 10,000 “surplus” votes. These 10,000 votes are therefore also added to the pot for the Blues Party.

FAQs About the Hungarian Election System

Q: I’ve heard that Péter Magyar’s Tisza Party has a lead in most polls of about 10, even 20 points over Fidesz, but that the election result remains uncertain. How come?

I don’t understand. If the polls are reasonably accurate, it should be a foregone conclusion, surely?

A: Superficially, what you think should be true. Indeed, many foreign pundits, unaware of the intricacies of Hungary’s system, have assumed that Tisza will win, based on the polls you cite. First is the statistical error, which, in a typical 1,000-respondent survey, is around 3.5%. Next, the election system contains biases that are impossible to explain completely

in a few words (see the main article for a summary explanation). The fact is that the system, created by the governing party in 2011, favors Fidesz in multiple ways. Most election analysts estimate that an opposition group needs to have a 4-6 percentage point lead to “level the playing field” in terms of seats in parliament.

Q: I’ve heard some Hungarians say Fidesz will win so many “mandates.” What's a mandate?

A: It’s a mistranslation. In Hungarian, MPs and parties win a “mandatum,” meaning “the mandate to represent the people.” In plain English, here it means a parliamentary seat.

We’ve Had Enough of the Russians “I’m voting for Tisza because I’ve lived through the 16 years of the Orbán system; they’ve caused enough damage, although they have done some good things. But they’re worn out, and I don’t like this Russian occupation which they are increasingly seeking to establish here. For me, we’ve had enough of Russians in Hungary. I’d rather support Ukraine. Naturally, I have no problem with Ukraine, and I think sooner or later, the Hungarian minority’s struggle for their rights there will be resolved.” Attila Tamás Császár, a school maintenance worker from Szentendre, attending the Tisza rally on Heroes’ Square, Budapest, on March 15.

Hungarian citizens who have no registered address in Hungary may vote by post, though they receive only one vote, for the party list. This provision is most used by ethnic Hungarians living in neighboring countries, especially Romania.

There are currently 490,000 voters registered in this category. Critics allege this is a “hotbed” of voter fraud, as there is next to no security or supervision of this voting procedure.

Q: I sometimes hear that the government is Fidesz, sometimes Fidesz-KDNP. What’s the difference?

A: Technically, the government is a coalition of Fidesz and the Christian Democratic People’s Party (KDNP). In practice, analysts (even those who are pro-Fidesz) accept that the KDNP is entirely dependent on Fidesz for its existence and exercises no genuine, independent power. Hence, the use of “Fidesz government” as shorthand. Creating this satellite party allows Fidesz to add to its broader “Christian-conservative” brand, and it also gains more seats in parliamentary committees.

Péter Magyar, chairman of the Tisza Party, delivers a speech at the party’s “National March” held at Heroes’ Square on March 15, 2026, marking the anniversary of the outbreak of the 1848–49 Revolution and War of Independence.

Ukraine

Ukraine Loan Blocked by Orbán, Szijjártó Phone Briefings Raise Eyebrows Roundup Crisis

Minister of Foreign Affairs and Trade

Péter Szijjártó has been accused of covertly briefing Moscow on EU meeting proceedings, prompting Prime Minister Viktor Orbán to order an investigation into the alleged tapping of Szijjártó’s phone by a foreign intelligence service, amid mounting suggestions of Kremlin influence in Hungary’s April 12 elections.

On March 19, Orbán attended an EU summit in Brussels at which he maintained his veto on a EUR 90 billion loan to Ukraine agreed by EU leaders in December. He linked its release to the restoration of Russian oil supplies via the war-damaged Druzhba pipeline, which has been offline since January.

“We are waiting for the oil, the rest is fairy tales,” Orbán said upon arrival. Dutch Prime Minister Rob Jetten called the veto “unacceptable,” while Finnish Prime Minister Petteri Orpo said Orbán was “using Ukraine as a weapon in his election campaign.”

Twenty-five of the 27 EU member states endorsed the summit's final statement on Ukraine, with Hungary and its ally, Slovakia, the holdouts. Belgian Prime Minister Bart De Wever raised the prospect that the EU might wait until after Hungary’s election to implement the loan. Leaders agreed to revisit the matter at their next meeting, scheduled for late April.

Citing European security officials, the Washington Post published an investigation on March 22

claiming that Szijjártó had been calling Russian Foreign Minister Sergei Lavrov during breaks at EU meetings to brief him on the discussions and possible decisions under consideration.

“Every single EU meeting for years has basically had Moscow behind the table,” one official told the newspaper. The same investigation reported that Russian secret services had proposed staging a fake assassination attempt against Orbán ahead of Hungary’s April 12 elections to bolster his support, according to European intelligence sources.

Szijjártó dismissed the report the same day as “fake news” and “senseless conspiracy theories,” accusing Ukraine and its domestic allies of fabricating the story to influence Hungary’s election.

Frequent Visitor

The foreign minister has made 16 official visits to Moscow since Russia’s full-scale invasion of Ukraine in February 2022, most recently on March 4, when he met President Vladimir Putin. Incidentally, the same day the investigation was published, EU diplomats confirmed to the Kyiv Independent that member states had begun holding sensitive meetings without Hungary’s participation, citing concerns that Budapest may have transmitted information from EU sessions to Moscow.

Polish Foreign Minister Radosław Sikorski addressed Szijjártó directly on social media, writing that “this would explain a lot.” Polish Prime Minister Donald Tusk said the account “shouldn’t come as a surprise to anyone,” adding that the allegations explained why he chooses to speak “only when strictly necessary” at EU meetings. Hungarian opposition leader Péter Magyar, whose Tisza Party leads some polls by 14 percentage points, labeled the reported conduct as “outright treason.”

Photo by KKM / MTI

On March 23, European Commission spokeswoman Anitta Hipper said Brussels expected Budapest to provide clarifications.

“A relationship of trust between member states, and between them and the institution, is fundamental for the work of the EU,” Hipper stated. A German foreign ministry spokesman described the allegations as “very serious,” saying confidential EU discussions can’t “tolerate any violation.”

Orbán responded the same day by ordering the Ministry of Justice to investigate what he characterized as the wiretapping of Szijjártó’s phone, framing the Washington Post’s sourcing as evidence that someone had been monitoring his foreign minister’s calls.

“The wiretapping of a government member is a serious attack on Hungary. I have instructed the Minister of Justice to investigate the information regarding the wiretapping of Péter Szijjártó,” Orbán stated.

Contact Confirmed

At a campaign rally on the evening of March 23, Szijjártó openly admitted to speaking to his counterparts in non-EU states both before and after EU foreign affairs meetings, according to Politico.

“I speak not only with the Russian foreign minister, but also with the U.S., the Turkish, the Israeli, the Serbian ones, and our other partners before and after the meetings of the Council of the European Union,” the minister said.

“The situation is that many decisions are being made in the European Union that influence the relations and cooperation of Hungary with other countries outside the EU,” Szijjártó said, before adding, “That’s what foreign policy is about.”

Government spokesman Zoltán Kovács released an audio recording in which journalist Szabolcs Panyi acknowledges providing Szijjártó’s phone number to the intelligence service of another EU member state.

“I speak not only with the Russian foreign minister, but also with the U.S., the Turkish, the Israeli, the Serbian ones, and our other partners before and after the meetings of the Council of the European Union. The situation is that many decisions are being made in the European Union that influence the relations and cooperation of Hungary with other countries outside the EU. That’s what foreign policy is about.”

“I gave them two numbers [.…] they also see these two,” Panyi says in the recording, describing a system tracking who contacts the minister and when. Panyi declines to identify which country’s service was involved. Szijjártó said he was “shocked” to learn his phone had been monitored and pointed to Panyi’s reported links to the opposition Tisza Party as evidence of a coordinated campaign against the government.

The revelations arrived against a backdrop established by a Financial Times investigation published on March 11, which reported that the Kremlin had approved a plan by the Social Design Agency, already under Western sanctions, to flood Hungarian social media with covert proOrbán content, portraying him as the only leader capable of defending Hungary’s sovereignty while depicting Magyar as a “Brussels puppet.”

According to a campaign planning document obtained by the FT, the agency had been reviewing Hungarian news publications since February and had identified around 50 pro-government figures to amplify its messaging.

NICHOLAS PONGRATZ

In a photo released by the Ministry of Foreign Affairs and Trade (KKM), Minister of Foreign Affairs and Trade Péter Szijjártó (right) meets with Pablo Quirno, Argentina’s Minister of Foreign Affairs, Foreign Trade, and Religious Affairs, in Budapest on March 21, 2026.

2 Business Investors Seen to be Exercising Caution at MIPIM

Caution appeared to be the predominant approach to the commercial real estate investment and development markets among delegates at the annual MIPIM 2026 CRE and investment expo in Cannes.

Against the backdrop of an ever more challenging geopolitical environment, more than 20,000 real estate and investment professionals and political representatives from 90 countries attended the 36th MIPIM at the Palais des Festival on the Côte d’Azur.

As many as a third of attendees were investors, according to the organizers. Alongside cautious investment strategies, there also seemed to be an emphasis on asset quality, with ESG having become a capital markets issue.

“The strongest message coming out of MIPIM this year was that European real estate has moved beyond the correction phase and is now focused on positioning,” comments Christopher Mertlitz, head of European investments at the sale and leaseback specialists W. P. Carey.

“The mood in Cannes was constructive and more positive than in recent years, but market participants remain focused on disciplined deployment of capital. Discussions were dominated by geopolitical concerns, their market implications, and the ever-present theme of AI and its growing impact,” he notes.

“Investors are returning to the market, but they are becoming more selective about where they deploy capital and how they underwrite risk. In our discussions this week, a clear theme was the growing role of sale-leasebacks as a corporate finance solution,” Mertlitz says.

“In the current environment, access to flexible capital remains a key priority for many companies, and sale-leasebacks are increasingly being leveraged as a tool to unlock liquidity, support reinvestment and modernization, and facilitate M&A activity,” he adds.

The Ukraine promotion stand has been present at MIPIM for 22 years, including the four years of war since Russia’s invasion of the country.

Open for Business

“We continue to do business and show that Ukrainians live a normal life despite daily bombardments,” says Sergiy

Drach, investor relations and business development manager at Terwin. The stand promoted Ukraine’s first planned national network of class “A” logistics parks, covering 360,000 sqm of space across three sites, with the first 90,000 sqm phase due to start this year. The Ukrainian developer is seeking equity joint ventures and co-development debt financing arrangements, according to Drach.

Hungary, Romania, Albania and several leading Polish cities had a strong presence with promotional stands, reflecting the perceived need for companies, cities, regions and country promotion agencies to market their domestic investment opportunities to international developers, investors and lenders.

The theme of the Hungary stand continues to be “Industrial Excellence,” reflecting the significant FDI Hungary has attracted and the resulting boom in industrial and logistics development markets around Budapest and, increasingly, provincial centers. Representatives included HelloParks, Innovinia, InPark, Faedra and Wing Industrial.

Another leading industrial developer, CTP, was promoting itself. It has an industrial network of more than 250 locations

totaling a GLA of 14.6 million sqm, with two million sqm under construction, and a strategic landbank of 34 million sqm across 12 countries in Europe.

The core markets for CTP are the Czech Republic, Slovakia, Hungary and Romania, while the growth markets are Poland, Serbia and Bulgaria.

“Two-thirds of our development is with existing customers. In general, around 60% of lettings are undertaken

on a pre-lease, and 40% are speculative,” comments Jakub Kodr, managing director of CTP Czech Republic.

“BTS reflects the customization of leases with specific requirements with regard to height and flooring. This is enabled through in-house contractors and designers. Construction periods are from 8-12 months with the land bank allowing steady growth,” he adds.

Hungary promotes itself as offering quality assets with a significant yield premium compared to Western Europe, Poland, and the Czech Republic. Tim O’Sullivan, head of capital markets at CBRE Hungary, argues that there is “election-dependent” cautious sentiment regarding investment in Hungary.

However, he adds that three investment deals were concluded at MIPIM, worth a combined EUR 150 million. He anticipates a similar investment total to the previous year at EUR 600 mln-800 mln.

Attractive Destination

As a region, Central Europe is seen as an attractive investment destination as domestic players diversify their portfolios.

“We leverage our in-house expertise to efficiently manage a high-quality office portfolio across the CEE region. High-growth CEE capitals within strategic reach of our Budapest HQ, enable hands-on management and strong risk adjusted returns,” comments Álmos Mikesy, chairman of the board and CEO of Gránit Asset Management.

“This means a focused regional platform investing in class ‘A’ offices, combining Western stability with emerging market upside,” he adds.

Gránit Asset Management describes itself as having a strategic CEE Focus targeting class “A” premium

office buildings in Vienna, Bratislava, Budapest, Belgrade and Bucharest. That offers institutional-grade stability with emerging-market yield potential in high-growth capitals that are within a five-hour journey from Budapest, enabling direct oversight and market agility. The fund has a target size of

EUR 500 mln

and a target return of 14.53% per annum, the firm says.

“CEE in general has a potentially stronger economic growth than the western part of the continent for the reason that we are still converging economies; there is economic potential in this, which is a long-term story that could continue for a minimum of 10 years,” says Gábor Borbély, head of CEE business development and research at CBRE.

“Half of the investment volumes in the region are undertaken by domestic capital and a further quarter by CEE investors; we are not so reliant on Western European, American or Asian capital as we once were. However, Chinese capital is still important for Hungary, and the Nordic countries are extending into CEE, starting with Poland and filtering further to the south,” he notes.

“In all markets, there is more domestic capital active as international capital is not moving around. Obviously, it would be good to have investors with a large amount of money paying more attention to Hungary and increasing the turnover,” Borbély concludes.

MIPIM will return to the Palais des Festivals from March 15-19, 2027, by which time the organizers, sponsors and participants alike will hope that the geopolitical volatility has eased.

GARY J. MORRELL

The MIPIM expo at the Palais des Festivals in Cannes.

Offices Undergoing Fundamental Changes as the Sector Evolves

The office is undergoing fundamental changes in working habits and usage, interior environment and amenities, priorities regarding location, ESG requirements, and energy efficiency, according to Valter Kalaus, managing partner of Newmark VLK Hungary.

a strategic tool for talent retention and productivity rather than just a physical workspace.

The office in 2026 is seen as functioning primarily as a collaboration and engagement hub, rather than a default place for individual work. It is designed to support team interaction, company culture, innovation, and client-facing activities, while more focused work is often done remotely. As a result, the office has become

“Hybrid work has reduced average occupancy but increased the importance of the peak-time experience. This drives demand for flexible layouts, shared desks, and multipurpose collaboration areas. Developers and property managers are increasingly using data analytics to optimize space

LEADERS

utilization, energy consumption, and tenant experience, while also focusing more on service-oriented management,” comments Kalaus.

Budapest, and, indeed, the wider CEE region, is being shaped by strong office demand from international SSCs and BPOs, which prioritize cost efficiency alongside quality. While ESG expectations are rising due to more international occupiers, the market remains pricesensitive. Infrastructure is improving, but differences between submarkets remain more pronounced than in Western European capitals.

Kalaus argues that a successful asset must combine certified energy efficiency (for example, via BREEAM or LEED) with tangible user benefits such as high indoor air quality, natural light, and wellnessoriented design. Amenities like bike storage, showers, EV charging, green outdoor spaces, and smart building systems are increasingly standard, alongside strong digital connectivity and tenant-focused services.

Further, location remains critical, with an emphasis on excellent public transport connectivity, especially subway and tram access. Proximity to a skilled workforce, and to nearby retail, food, and lifestyle services, is essential. Increasingly, locations that support a “live-work-play” environment are preferred, especially in attracting younger talent.

Human-centric Design

“Contemporary offices in Budapest reflect global trends, with a focus on biophilic elements, natural materials, and hospitality-inspired interiors. Spaces are more informal, flexible, and brand-driven, blending work, social, and relaxation areas.

There is also a clear shift toward humancentric design prioritizing comfort and wellbeing,” says Kalaus.

From a tenant perspective, the focus is on efficiency, flexibility, and ESG alignment, ensuring the space supports changing headcounts and hybrid work. From the occupier (employee) perspective, expectations center around comfort, acoustic quality, access to collaborative and quiet zones, and seamless digital infrastructure that supports both in-office and remote work. Kalaus says that only a relatively small proportion of Budapest’s office stock, mainly newer Class “A” developments, fully meets these expectations.

“A large share of older buildings lack ESG credentials, modern layouts, and the level of amenities now required by international tenants. Upgrading is likely, but only for well-located assets where the business case supports significant capital expenditure. In many cases, owners will face a ‘refurbish or reposition’ decision, while less competitive buildings risk obsolescence or conversion to alternative uses,” the real estate expert says.

Finding high-quality, ESG-compliant space is seen as becoming increasingly challenging, particularly for larger tenants requiring contiguous areas. While supply is improving, demand from international occupiers continues to outpace availability in the best locations.

“Budapest can strengthen its position by further improving transport infrastructure, increasing the pipeline of ESG-compliant developments, and enhancing regulatory predictability.

Positioning itself as a regional innovation hub and investing in talent development would also significantly increase its competitiveness,” Kalaus concludes regarding the wider environment in Budapest.

GARY J. MORRELL

Valter Kalaus, managing partner of Newmark VLK Hungary.

ESG Compliance Driving Investment

A sentiment report published by SIOR (Society of Industrial and Office Realtors) Europe and the University of the Built Environment has found cautious optimism among commercial real estate professionals. However, it also warns of a growing divide between prime and secondary stock. The report says that ESG compliance is becoming a crucial factor in attracting finance, tenants and investment across Europe.

Green Matters

A monthly look at environmental issues in Hungary and the region

that physical climate risk is already material and must be integrated into development and investment plans.

“We have changed from ESG reporting to sustainability execution. It started last year when we moved from ESG to sustainability, meaning we are moving from reporting to proof of concept and proof of performance, which has direct and indirect impacts on the recipient of the cash flow,” says Hubert Abt, CEO and founder of Workcloud24.

GSP Increases its Presence at CTP

GSP Global Solutions Provider has leased an additional circa 7,000 sqm at CTPark Budapest Vecsés on a long-term basis.

The research finds that ESG considerations are essential for accessing finance, securing occupier demand, and ensuring long-term asset viability.

“European real estate markets are entering a quality reset, where asset performance depends on ESG compliance, data transparency, and professional capability,” commented Matthew Leguen de Lacroix, the head of business development for EMEA at SIOR, speaking at MIPIM, the annual global property and investment conference and exhibition, held in Cannes, France.

“ESG has shifted from a reputational consideration to a practical gatekeeper for financing, leasing and longterm viability. Yet members report ongoing uncertainty, concerns about ‘certification theater’ and difficulties

evidencing clear pricing impacts. Non-compliant buildings already face exit risk,” the SIOR report concludes.

The object of the study was to review the sentiment of SIOR members. The research focused on both how ESG affects member’s day-to-day project work, and how the application of AI will impact real estate.

Committed Investors

At the “Road to Zero” stage at MIPIM, participants reported that, despite the perceived ESG backlash, notably in the United States, many institutional investors remain committed because improved environmental performance is increasingly seen as part of financial performance.

Further, climate events not only damage physical assets directly but also disrupt revenues and increase operating costs. The message was

“This means that for ESG in the new world, you have to show operational excellence, which is measured in KPIs towards the peer group, the asset class, and the clusters. Then, for example, service charges and carbon emissions can be compared and these come together to produce a short comprehensive matrix of operational KPIs, which then can be compared to others,” Abt explains.

“Now, with the impact of AI, using this as a tool, we have everything digital and we can immediately use this data to make a rating for a benchmark towards other assets in the same cluster. This is also very important for the financing, as on the part of the bank, the risk assessment is already more than 50-70% driven by AI machines, which do the risk assessment. The same applies to tenants and investors who, through AI, can find the best product. Regulation was the stick and capital markets the carrot; now, since regulation is out of fashion, the capital markets have taken over,” he concludes.

Editor’s note: For more on MIPIM, see page seven.

Budapest ONE Achieves BREEAM In-Use ‘Outstanding’ Certification

All three phases of the Budapest ONE office building have now achieved the highest BREEAM In-Use “Outstanding” certification, which assesses the actual, operational performance of the project.

The result makes the 66,000 sqm complex, developed by Futureal, the highestranked office building in Hungary within the BREEAM framework, according to the developer. Its performance is supported by on-site solar energy generation, which helps reduce tenants’ energy costs.

Describing “exceptionally high percentage scores,” Futureal says, “Auditors rated the building’s performance as outstanding in several areas, including accessibility, flexibility

and water management. CBRE participated in the certification process as both an advisor and an assessor.”

The complex was designed with a strong focus on energy efficiency and reducing environmental impact.

The office building operates an energyefficient, intelligent central building management system and is equipped with a heat recovery ventilation system.

A total of 150 solar panels with a combined capacity of 81.76 kWp have

“The hall leased in CTPark Budapest Vecsés is equipped with modern, sustainable technical solutions. The building already features a solar panel system, motion-sensor-controlled LED lighting and a building management system (BMS) to support energy-efficient operation,” comments Péter Tar, head of regional business development at CTP Hungary.

“Heating and cooling are provided by a heat pump system, allowing the facility to operate without gas consumption. The hall holds a BREEAM ‘Excellent’ rating, confirming its high standard of environmentally conscious design and operation,” Tar adds.

All of the 14.6 million sqm of CTP developed and managed space across Europe is BREEAMcertified, providing on-site amenities, solar energy and green workspaces according to CTP.

been installed on the roof. The system generates approximately 80,000 kWh of electricity annually, reducing carbon dioxide equivalent emissions by nearly 18 tonnes per year. The green energy produced results in annual savings of several million forints overall, proportionally lowering tenants’ energy costs, according to Futureal.

“Our objective with Budapest ONE was to ensure that sustainability delivers measurable results and visible business advantages in everyday operations. Achieving the ‘Outstanding’ certification for the entire building confirms that we are capable of developing longterm, value-retaining office buildings in line with the most stringent international standards,” comments Gábor Radványi, chief architect and head of sustainability at Futureal.

The building also holds the highest “Gold” rating from Access4You, as well as WELL Core “Platinum” certification. Futureal says tenants benefit from a green rooftop garden, bicycle storage with showers, EV, bicycle and scooter charging facilities, selective waste collection, and a nearly 500-meterlong rooftop running track. Inside the complex, there is half a hectare of open community space and green areas.

GARY J. MORRELL

CTPark Budapest Vecsés

Solar panels on the Budapest ONE roof.

3 Country Focus

Asia

China-Hungary Relations: Mutual Respect and Benefit

In a world made less predictable economically by geopolitical tensions and the on-off tariff regimes, China continues to place its faith in the stability offered by the FiveYear Plan. Twelve months on from our last interview, China’s Ambassador to Hungary Gong Tao gives us his take on bilateral relations between the two countries and what makes the friendship so deep-rooted.

the Evoring plant in Jászfényszaru, Intretech in Kapuvár, and Zoomlion at Tatabánya were newly launched.

the official launch of freight operations on the Hungarian section. Passenger services will also be launched in the future.

is a longstanding governance practice and a highly systematic undertaking, a process involving broad participation and rigorous evaluation.

The formulation process involves not just top-level design but also public input. Take the 15th Five-Year Plan as an example: more than 3.113 million suggestions were submitted through the online channel alone. People have a say at every step of the process.

Since the introduction of the first FiveYear Plan in 1953, this practice has spanned more than 70 years. Over these decades, China has faced challenges far more complex and severe than tariff fluctuations, from isolation and blockade to the threat of war, from the global financial crisis to the once-in-a-century pandemic. Yet, China has overcome these difficulties, consistently achieving the goals set in each plan and delivering both rapid economic growth and longterm social stability. This is particularly notable in today’s increasingly uncertain global environment.

BBJ: How would you characterize the China-Hungary bilateral relationship in Q1 2026?

Ambassador Gong Tao: Under the strategic guidance of our leaders, China–Hungary relations continue to develop at a steady pace. At his international press conference at the beginning of the year, Prime Minister Viktor Orbán reaffirmed Hungary’s commitment to the One-China Principle and expressed strong expectations for further bilateral cooperation.

High-level exchanges between the two countries have begun the year on a positive note. In February, Foreign Minister Wang Yi visited Hungary at the invitation of the Hungarian side, where he met with the Prime Minister and Minister of Foreign Affairs and Trade Péter Szijjártó. China’s decision to make Hungary the first stop of its first European visit of the year highlights the importance it attaches to our bilateral relations.

Practical cooperation has yielded both tangible results and promising new initiatives. The Hungarian section of the Budapest–Belgrade railway has officially commenced freight operations, while projects such as

Cultural and people-to-people exchanges have also been rich and vibrant. The Confucius Institute at Széchenyi István University was officially inaugurated, and the Civilization of the Qin and Han Dynasties exhibition featuring China’s Terracotta Warriors returned to Budapest after 40 years. Chinese Corners were newly established in Borsodbóta and at the NOVA School of Talents in Gödöllő, bringing the two peoples closer through bridges of language and culture.

The two countries also maintain close coordination on international issues. Hungary has joined the UN Group of Friends on Global Governance, an initiative proposed by China to contribute to greater stability and certainty in global peace and development.

BBJ: China has committed to promoting mutually beneficial cooperation projects under the Belt and Road Initiative, such as the Budapest-Belgrade railway project. Are you happy with the progress on this, and are there any more such projects regarding Hungary in the pipeline?

GT: The Hungarian section of the Budapest–Belgrade railway is a flagship project of China–Hungary cooperation under the Belt and Road Initiative. Thanks to the joint efforts of both sides, overall progress has been smooth. On Feb. 27, the first freight train departed from Ferencváros Railway Station, marking

Once the entire railway is fully operational, travel time between Budapest and Belgrade will be reduced from eight hours to three and a half. This will significantly improve travel conditions for residents along the route and invigorate regional economic and social development. I am confident that people in both Hungary and Serbia will be happy with these improvements.

Two weeks ago, China concluded its annual Two Sessions, which are its most important domestic political meetings of the year. The Outline of the 15th Five-Year Plan adopted during the Two Sessions sets the direction for China’s development over the next five years and presents new opportunities for cooperation with Hungary. China will continue to work with Hungary and other partner countries to advance highquality Belt and Road cooperation, further strengthening not only the physical connectivity of infrastructure but also the institutional connectivity of rules and standards, as well as people-to-people ties, synergizing development strategies, and improving the overall quality and effectiveness of practical cooperation.

BBJ: With all the on-off uncertainty around tariffs, is it becoming harder to predict and plan economic policy?

GT: As a country of 1.4 billion people, economic planning has never been a simple task for China. The formulation of five-year plans for economic and social development

BBJ: Besides economic and policy considerations, how important are more “human” educational and cultural connections in developing relations between the countries?

GT: As President Xi Jinping observed, “Amity between the people holds the key to sound relations between states.” The foundation of state-to-state relations lies in the friendship between their peoples, and people-to-people exchanges have played an irreplaceable role in the development of China–Hungary ties. Currently, more than 10 universities in China offer Hungarian language programs, while seven Confucius Institutes have been opened in Hungary. These institutions have cultivated a large pool of professionals familiar with both languages and cultures, providing vital talent support for bilateral industrial cooperation. Such exchanges bring the peoples of our two countries closer together. From my own experience, I was struck by how the Chinese Spring Festival Gala created a unique moment of connection. Almost overnight, my Hungarian friends were enthusiastically discussing the Kung Fu performance by Chinese robots, while my Chinese friends developed a keen interest in the Legényes dance and the Hungarian guitarist performing at Heroes’ Square, both featured in the Gala. Despite the geographical distance between the two countries, moments like these create a powerful sense of closeness. This illustrates the profound and positive impact of people-to-people exchanges.

ROBIN MARSHALL

Gong Tao, Chinese Ambassador to Hungary

Photo by Róbert Hegedüs

Temu Intensifies Price Competition in Hungary’s Retail Sector

Hungarian shopping habits have changed dramatically in the past few years. Although the dominance of brickand-mortar stores remains, purchasing decisions are now made on mobile screens. Temu and other global e-commerce platforms have introduced strong price competition to the market, but the greatest advantage of domestic retailers remains trust and physical presence.

“At the same time, domestic retailers have a huge advantage in trust and physical presence. If a product is not suitable, the customer knows where to return it, and this sense of security is increasingly valuable,” he notes.

The Hyper-local Key

The Hungarian retail sector is undergoing a significant transformation, in which traditional marketing tools no longer consistently achieve the desired impact. More than 80% of purchasing decisions now take place online before a customer even enters a store, according to research by Shopfully. This shift means that retailers need to be present on consumers’ “mental maps” on digital platforms to drive foot traffic to physical locations.

One of the most defining trends in the Hungarian retail market in recent years has been the rapid expansion of Chinese e-commerce players, including Temu. The phenomenon is rooted in consumer price sensitivity: Like consumers across Europe, one in eight Hungarian shoppers is motivated specifically by promotional offers and the lowest prices.

“The appearance of global Chinese players is a forcing function for local retailers. To stay in the game, they need to compete with the same weapons: relevant, immediate and attractive discounts,” says Oliver Olschewski, managing director of Shopfully Central Europe.

Retailers’ primary task is to deliver the right information to consumers at the right time. Price and reliability can be important messages, but they resonate differently with different consumer groups. What is a valuable offer for one shopper may be noise for another. The key to success is hyper-local relevance: reaching the customer at the exact moment they make their purchasing decision.

This requires data-driven advertising solutions, understanding which message to show to which consumer on which platform. Traditional consumer paths no longer work effectively.

“The customer journey today is no longer a straight line, but a hop across platforms. The consumer sees a video on social media, then searches a digital catalog, and finally drops by a nearby store. Retailers need to be present at every touchpoint, but how they are present matters,” Olschewski emphasizes.

Timing is Critical

Relevance and proper timing are critical. According to Shopfully research, consumers perceive approximately 60% of advertisements as spam. How can retailers reach a more effective ratio of around 40%? Hyper-local, relevant and non-intrusive ads help capture consumer attention.

For physical retailers, printed promotional leaflets used to be the main communication tool. As Shopfully’s representative survey

of 1,000 respondents in Hungary showed, the majority of consumers now follow digital leaflets. Some 38% read only digital leaflets, while 31% read both printed and digital formats.

The main challenge in digital advertising is the sheer number of global tech platforms and local media options. Shopfully runs an advertising system it says allows campaigns to appear on social media and local media channels, all managed from a single platform.

The company’s experience indicates that the digital transition not only makes promotional communication more effective but also delivers significant cost savings by reducing the budget for distributing printed leaflets.

For physical retailers, printed promotional leaflets used to be the main communication tool. As Shopfully’s representative survey of 1,000 respondents in Hungary showed, the majority of consumers now follow digital leaflets. Some 38% read only digital leaflets, while 31% read both printed and digital formats.

A well-designed strategy allows the media mix to align precisely with the needs of target groups and local market conditions, resulting not only in more effective reach but also in substantial cost savings for retailers.

The trend is clear: physical stores still account for 90% of grocery and daily retail turnover. But the path to these stores now begins in consumers’ pockets, on their smartphones.

EU Tariff Reform Could Reshape Retail Sector Competition

The European Union is set to reshape the competitive landscape for e-commerce by removing the duty exemption for low-value imports, a move that directly ties into the trends highlighted in the growing influence of platforms like Temu on Hungarian shopping habits. Price competition has been a key driver behind Temu’s rapid rise, but EU regulations approved late last year could begin to rebalance that dynamic.

Under the rules agreed by EU finance ministers, goods valued below EUR 150 will no longer enter the bloc dutyfree, closing a loophole that

has long benefited non-EU sellers, including China’s Temu and Shein. This policy shift is designed to level the playing field for local retailers, whose competitive advantage lies more in trust and physical presence than in pricing alone.

According to estimates cited by the European Commission, up to 65% of small parcels entering the EU may be undervalued to avoid customs duties, while approximately 91% of lowvalue e-commerce shipments in 2024 originated from China. By eliminating the exemption, the EU is not only addressing lost revenues but also reducing

incentives for ultra-low-cost imports that have intensified price pressure across the market.

A more fleshed-out version of the new rule will enter force when the EU Customs Data Hub, envisioned as a shared central platform for interaction with customs authorities and for strengthening controls, begins operations around 2028. Until then, a customs duty of EUR 3, roughly equivalent to HUF 1,150, will be imposed on low-value parcels entering the European Union. The duty will take effect on July 1 and is expected to remain in place until the customs data hub is operational and a more comprehensive solution is found.

BENCE GAÁL

The likes of Temu and Shein offer challenges to Hungarian retail, but local players have some advantages.

Photo by daily_creativity / Shutterstock.com

Xiaomi Sees Hungary as key Sales Market With Room to Grow

The PR manager of Xiaomi Hungary, Dávid Drevenyák, says the company still sees substantial room for expansion in Hungary, not only through smartphones and Redmi devices, but through premiumization, e-commerce, and a broader Artificial Intelligence of Things ecosystem.

BBJ: How do you avoid value-for-money strength becoming a ceiling while also pushing Xiaomi further upmarket?

He argues that Hungary remains a sales-driven market today, but one with the potential to become much more important as Xiaomi deepens its presence across categories. The Hungarian subsidiary’s strategy is still anchored in smartphones, but the company is clearly thinking beyond handsets. In this interview with the Budapest Business Journal, Drevenyák explains why Hungary matters within Xiaomi’s wider regional plans.

BBJ: Where does Xiaomi stand in Hungary today, and what would success look like over the next two to three years?

Dávid Drevenyák: Xiaomi has long been guided by the concept of “steadfastly forging ahead,” which involves bringing affordable, high-quality products to an ever-growing number of people through continuous innovation and the renewal of its product portfolio. This strategy is proving effective not only in our financial results but also in our growing market share. Our latest figures show that Xiaomi had a 20% smartphone shipment share in the Hungarian market, with 28% yearon-year growth in the fourth quarter of 2025, according to Canalys. Our goal is to improve the customer and user experience further, simplify everyday life, and make innovation accessible to everyone. We are working toward a better, more connected, AI-driven, and easier life.

DD: Xiaomi has put ever more emphasis on the premiumization of its brand portfolio, and we have become very successful in this. For example, we achieved huge success in the high-end smartphone segment, particularly with the 15T Series, and we already know, only three weeks after launch, that we can expect even better sales results with our newly launched Xiaomi 17 Series.

At the same time, we continue to focus on accessibility in terms of pricing, so our portfolio has something to offer all types of consumers.

BBJ: In Hungary today, what is doing most of the heavy lifting: Xiaomi-branded phones, Redmi, or the wider AIoT ecosystem?

DD: AIoT offers great possibilities for the future, as this portfolio is in the middle of an R&D cycle, similar to what we saw when smartphones started to flourish. That is why we have placed a lot of emphasis on developing AIoT products, such as wearables, scooters, and various home appliances, including Mijia white goods, which we launched in Hungary just a couple of weeks ago. We are constantly adding more products to our portfolio.

Also, our new EV portfolio, which is available only in mainland China for now, has broken multiple sales records and exceeded expectations. For example, our first SUV, the Xiaomi YU7, launched in China in June 2025 and logged almost 300,000 pre-orders in the first hour of sales.

But for the time being, our smartphone and accessories portfolio generates the biggest sales figures in Hungary.

BBJ: How important is Hungary within Xiaomi’s wider Central and Eastern European strategy?

DD: Xiaomi considers Hungary one of the key markets in the CEE and

The latest generation, the Redmi Note 15 Series, introduces a comprehensive lineup of devices designed to address a wide spectrum of consumer needs, from extended battery life and strong durability to advanced camera capabilities and AI tools. This versatility ensures that users can find a device tailored to their expectations without compromising on value.

At the same time, we continue to offer a diversified smartphone portfolio with strong devices in different price segments. For users seeking a full flagship experience, the newly launched Xiaomi 17 Series delivers industry-leading photo and video performance at its core. Developed in collaboration with Leica, it sets a new benchmark for premium mobile imaging and also offers a variety of AI tools, including both Xiaomidesigned features and Google Gemini.

BBJ: What does Xiaomi believe it can offer in AI that feels commercially meaningful rather than just promotional?

Nordic regions. The brand enjoys strong recognition among Hungarian consumers and continues to demonstrate consistent sales growth across multiple product categories. Overall, Xiaomi is perceived within Hungarian society as a rapidly expanding brand with a diverse, increasingly competitive portfolio. Currently, Hungary remains a predominantly sales-driven market from the brand’s perspective. However, given the sustained growth trajectory and the notably positive public sentiment, the market holds significant potential to evolve beyond its current role.

BBJ: In practical terms, what does deeper Xiaomi penetration in Hungary mean now?

DD: For years, Xiaomi has been a leader in the Hungarian smartphone market, but we continue to innovate to stay relevant for every user group. At the same time, we highly value the community, so we are constantly working to strengthen our connection with the people who use our products. Last year, we introduced our new webshop in Hungary, and e-commerce is now an inevitable and continuously growing business segment. We are proud that Hungarian consumers can now enjoy all the benefits that that it offers.

BBJ: How do you see Redmi evolving in Hungary as consumers become more cautious but still want better durability, cameras, and AI features?

DD: Since its beginning, the Redmi Note Series has been designed to deliver well-balanced, real-world performance, combining premium features with highly competitive pricing in the midrange smartphone segment. Over the years, it has become one of our bestselling product lines both in Hungary and globally, and it has played a leading role in establishing Xiaomi as one of the key global smartphone manufacturers.

DD: A systems-based, holistic approach is particularly important in this category because connectivity is now one of the biggest draws for users. That is why Xiaomi created its “Human x Car x Home” ecosystem, in which interconnected products and services use artificial intelligence to simplify and improve everyday life.

“Currently, Hungary remains a predominantly sales-driven market from the brand’s perspective. However, given the sustained growth trajectory and the notably positive public sentiment, the market holds significant potential to evolve beyond its current role.”

In addition to wearable smart devices, this philosophy covers electric mobility products and our AIoT family, where home appliances and other durable goods can deliver real value through AI integration.

In September 2025, we unveiled Xiaomi-MiMo-Audio, an open-source large-scale audio model, and with this, our model matrix is now complete, encompassing language, multimodal, and voice models, thereby creating a comprehensive strategic ecosystem.

This month, at MWC [Mobile World Congress], we presented our futuristic smart home solutions, including Xiaomi Miloco and Xiaomi Local Copilot, outside China for the first time. Users can interact with the smart-home system through natural dialogue. These developments show that, for us, AI is not a separate marketing layer, but something that connects the whole ecosystem.

GERGELY HERPAI

Dávid Drevenyák, PR manager of Xiaomi Hungary.

Honor Sees Hungary as a Strategic Market for Ecosystem-led Growth

Bill Liu, Hungarian country manager of the global technology firm Honor, tells the Budapest Business Journal that Hungary is more than a sales market for the company: it is also a reference point for Central and Eastern Europe, where brand trust, operator partnerships, and ecosystem integration will shape the next phase of growth. That suggests a company trying to move from visibility to preference in Hungary.

BBJ: Why should a Hungarian consumer choose Honor over Samsung, Apple, or Xiaomi?

BBJ: Where does Honor stand in Hungary today, and what would success look like over the next two to three years?

Bill Liu: The Honor brand has been present in the international market for 10 years. Since becoming independent [in 2020, it was previously a sub-brand of Huawei], Honor’s overseas business has grown significantly. Currently, our brand awareness in Hungary is very high, close to 90%. Our share in the carrier market is maintained above 15%, and we are especially strong in the EUR 300-600 price range. During some launches, such as Magic 8 Lite, we have exceeded 25% in certain carrier channels. In the next two to three years, we want to move closer to Hungarian users’ way of thinking, shift from product and technology leadership to emotional communication with users, and become a preferred brand in their minds.

BL: We have built many strengths in innovation, from AI-related development to battery technology, eyecare displays, and durability. But the key question is how to create the most valuable experience by understanding Hungarian users. We found that they place particular emphasis on balancing work and family life while also enjoying the sharing of family moments. That is why this May, we will launch Magic Ring in Hungary, which will be the first European market where we promote it. Magic Ring connects devices across the Android ecosystem and also enables seamless connection between Android and iOS phones. Understanding local consumers and offering innovations that deliver real value is where our differentiation lies.

BBJ: Is growth in Hungary being driven more by flagship models or by the mid-range and entry segments?

BL: It is driven by a healthy balance between the two. Flagship devices play a very important role in building the brand by showcasing our latest technologies, innovations, and AI capabilities. At the same time, the mid-range and entry segments are essential in scale terms, because that is where a large part of market demand sits. Our strategy

with best-in-class partners around the world. At the same time, being global also means being locally relevant. Hungarian consumers tend to make rational, value-driven decisions. Trust, durability, and long-term experience often matter more than fast-changing trends. So, Honor combines global innovation with local understanding.

BBJ: How serious is Honor about building a real business presence in Hungary?

BL: Honor’s strength has always been its strong consumer foundation, and that remains central to our strategy. At the same time, we clearly see growing interest in our devices among professional and business users. Our approach is not to separate these worlds, but to build on the same technology platform that already serves millions of consumers. Devices that are reliable, powerful, and easy to integrate into everyday workflows naturally become attractive in business environments as well. In Hungary, building an Honor business presence means gradually expanding partnerships, supporting professional use cases, and strengthening the ecosystem around our devices.

BBJ: Where are you seeing the strongest traction on the business side?

is not about choosing one over the other, but about offering a well-balanced portfolio so different users can find a device that fits their needs and lifestyle.

BBJ: Why is Hungary strategically important within your wider regional roadmap?

BL: Hungary plays an important role in our Central and Eastern European strategy because it combines strong technological openness with a well-developed retail and operator ecosystem. This allows new products and technologies to reach users quickly and generate valuable feedback. From a regional perspective, Hungary often serves as a reference market. The insights we gain here, from user behavior to partner cooperation, help shape how we introduce new devices and experiences across other markets in the region.

BBJ: What can Honor bring from Asian markets, and where does Hungary require a different approach?

BL: Asian markets, especially China, are highly competitive and fast-moving, and that has shaped Honor in terms of speed, innovation, and the ability to translate technology into meaningful consumer benefits. But Honor is not defined as a Chinese brand or an Asian brand. We are a global technology brand. While our headquarters are in China, our approach is built on open collaboration

BL: Our current priority is to scale through channel-led growth, especially in close partnership with major telecom operators and retail partners. These remain the most important touchpoints for consumers, and we are seeing the strongest traction there, both in terms of visibility and conversion. At the same time, this channel strength is creating a natural entry point into broader business segments. We are seeing increasing momentum in SMEs, where customers prioritize practicality (battery life, durability, and consistent performance), which aligns well with our product strengths.

BBJ: In practical terms, what does stronger business penetration mean in Hungary?

BL: It means winning in our core channels. That includes deeper telecom operator partnerships to scale reach and trust, and broader retail distribution to ensure easy access for consumers. It is not just about expanding the footprint, but also improving the quality and impact of every touchpoint.

BBJ: How do you make AI commercially meaningful in Hungary, especially for business users?

BL: AI is a central part of Honor’s strategy, but its real value lies in practical everyday use rather than slogans. In a business environment, this often means improving efficiency, helping people manage information more easily, simplifying routine tasks, and saving time. Beyond the professional context, AI also creates value for everyday users, whether that means creating content, capturing moments, or turning ideas into results more easily. Our goal is to make AI genuinely useful for everyone.

GERGELY HERPAI

Bill Liu, Hungarian country manager of Honor.

in Brief News Asia Focus

Flextronics to Invest HUF 35.5 bln in Capacity Expansion

The Singaporean-American multinational electronics manufacturer Flextronics will invest around HUF 35.5 billion (EUR 91.5 million) to expand capacity at its base in Zalaegerszeg (235 km southwest of Budapest by road), Minister of Foreign Affairs and Trade Péter Szijjártó said on site on March 23. The government is supporting the investment, which will create 210 jobs, with HUF 8 billion, Szijjártó said, according to state news agency MTI. Szijjártó said the investment would advance local smalland medium-sized enterprises.

BYD Dealerships in Hungary Set to Double

The number of brand dealerships of Chinese car maker BYD is set to reach 30 by year-end, climbing from 14 in 2025, the head of BYD Hungary told state news agency MTI. Ádám RényiVámos predicted a sharp increase in BYD sales, to more than 7,000 in 2026 from 2,499 in 2025, putting the brand among the top five or six in Hungary. He added that achieving those targets

would depend on the pace of opening new dealerships. BYD was off to a strong start in 2026, with annualized sales climbing 85% in January-February. Figures from Datahouse show new BYD sales in Hungary came to 464 in January-February, giving the brand 2.44% market share in the combined passenger car and light commercial vehicle segment. Sales of batteryelectric BYD models climbed by more than 300, boosting the brand’s share in the segment to 18%. Fleet sales accounted for 40-50% of the total. BYD expects to start test production at its plant in Szeged this quarter. Serial production could begin in Q2.

LG Chem Seeks Buyer for Hungarian Separator-film Plant

Korean chemical company LG Chem has begun searching for a buyer for its base-film manufacturing unit at Nyergesújfalu (58 km northwest of Budapest by road), signaling a strategic shift away from low -margin separator - film production toward higher - value products. The company’s move follows rapid changes in the global battery -separator market, where Chinese manufacturers’ capacity

expansion has intensified price competition and eroded profitability for Korean and Japanese firms. The Hungarian plant was originally part of a joint venture announced in 2021, with an initial 50–50% ownership structure between LG Chem and Japan’s Toray Industries, but Toray ultimately exited the venture at a significant loss, effectively dissolving the original technological cooperation.

Hazardous material Permit Suspended at Plant in Sóskút

Authorities have suspended the hazardous material handling permit of Dongwha Electrolyte Hungary Kft., the South Korean company operating a solvent recycling facility in Sóskút (26 km southwest of central Budapest by road). According to the local municipality, the Pest County Government Office ordered several corrective measures, including ensuring the proper functioning of the site’s water based fire extinguishing system and limiting the amount of hazardous materials stored on site to no more than one quarter of the legally defined lower threshold. The plant received its operating license in January despite local protests, allowing it to run until November 2035 and recycle N methyl 2 pyrrolidone (NMP), a solvent used in battery production. Residents continue to oppose the facility, citing NMP’s documented risks, including

Japan’s HI-LEX Inaugurates HUF 2.5 bln Rétság Capacity Expansion

Japanese automotive industry supplier HI-LEX inaugurated a HUF 2.5 billion (about EUR 6.45 million) capacity expansion and renewable energy investment at its base

in Rétság, about 65 km north of Budapest by road, on March 17. The government supported the investment, which created 30 jobs, with HUF 450 mln, Minister of Foreign Affairs

and Trade Péter Szijjártó said in a statement quoted by state news agency MTI. HI-LEX can now deliver products from the plant to BMW’s factory in Debrecen and bases in Germany, it said.

potential harm to fetal development. The municipality emphasized that public safety and full compliance with regulations remain its top priorities.

Temu Reaches 4.2 mln Monthly Users in Hungary

Chinese online marketplace Temu’s latest transparency report shows that the platform now has 4.2 million average monthly active users in Hungary, an extraordinary figure in a country of 9.5 million people, according to data published by Temu’s European operator, Whaleco Technology Limited. About half of these users are estimated to make actual purchases, which still represents an exceptionally high level of engagement. EU digital regulations require the company to publish such reports every six months, including data on average monthly active recipients, which highlights Temu’s rapid expansion. The platform’s surge suggests that nearly every second Hungarian has visited or used the site recently, marking one of the fastest adoption curves in the local e commerce market.

Chinese Zoomlion to Build HUF 43 bln Machinery Plant

Chinese heavy machinery manufacturer Zoomlion is investing HUF 43 billion to build its first European intelligent production plant in Tatabánya (60 km west of Budapest by road), which is expected to create roughly 800 new jobs. The facility will include an assembly and machine painting unit, supported by HUF 7 bln in Hungarian government funding, and will rely on local suppliers for 70% of its inputs. Minister of Foreign Affairs and Trade Péter Szijjártó highlighted that Chinese companies now view Hungary as their top European investment destination, with 30% of all Chinese investments arriving in the country last year. Over the past 10 years, the government has signed agreements for 80 major Chinese corporate investments, which together provide around 50,000 jobs, although guest workers fill many positions. The new Tatabánya plant is expected to strengthen local SME enterprises by integrating them into Zoomlion’s European supply chain.

Richter Tocilizumab Biosimilar Advances Toward Approval

The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has adopted a positive opinion recommending the granting of a marketing authorization for Tuyory, a biosimilar of tocilizumab developed by Hungarian pharmaceutical company Gedeon Richter and Japanese peer Mochida Pharmaceutical. State news agency MTI reported that the European Commission will review the CHMP recommendation before taking a final decision on the marketing authorization application. Tuyory is intended for the treatment of rheumatoid arthritis, COVID19, juvenile idiopathic arthritis, polyarticular juvenile idiopathic arthritis, cytokine release syndrome, and giant cell arteritis.

Minister of Foreign Affairs and Trade Péter Szijjártó (second left), Mihály Balla, the Fidesz MP for the region (left), and Péter Miskei, managing director of HI-LEX (third left), on a plant tour at the Rétság Industrial Park following the HI-LEX investment handover ceremony on March 17, 2026.

Photo by Péter Komka / MTI

4Special Report

SSC / BSC

Prabal Datta: Growth Solves Many Issues

The India-owned business that is today known as TCS (Tata Consultancy Services) was listed at the Court of Registry on Feb. 27, 2001. Back then, the reason for establishing it was to support one customer with a handful of IT engineers. Today, it has a headcount of some 2,000. Prabal Datta, general manager of the Budapest operation and an Eastern European delivery network of seven countries, is convinced that empowering staff is a big reason for its success.

or cybersecurity. We also have support services like business processes, finance, accounting, and HR. We do a lot of work in the digital workplace. We have people from 90 different nationalities.”

For all of TCS’ renowned technical expertise, it is those people who are at the very heart of its model for success. The approach is simple: find the talent, train the talent, future-proof the talent.

“Our operation in Hungary has changed significantly and dramatically, not just in the head count, but in the range of services that we provide, the way we provide those services, and how we have developed the other parts of our operations in Europe,” Datta tells the Budapest Business Journal in an exclusive interview.

The Budapest headquarters (spread across three buildings on the same street) serves more than 100 customers with a wide range of services. Today, you’ll find TCS all over the globe, but Datta, who moved to Hungary in 2015, is very clear about where it began.

“Hungary was the first center outside India for TCS. Our whole nearshore concept started in Hungary, developing to become a global network delivery model with 40-odd centers around the world. But the genesis was here,” he says.

Technological support is still a core part of what the business provides, he says, “whether it is cloud, AI, data,

“One of the main factors was to look at different channels for finding the talent, and that continues to be a focus. We are also very big on in-house talent development. We will continue to do more of that to make sure that the people we already have are upskilled and ready to tackle the new world,” Datta explains.

One much-voiced concern for businesses already operating in Hungary is whether they can continue to find suitably qualified graduates in sufficient numbers, given the declining population rate and near-full employment.

Education Award

“We already work with universities to help shape their output to match market reality. This year, we got an award for best university education program. This is something we will continue to do in the future.” But TCS is not simply waiting until students are in tertiary education.

“We also work with high school students to make them more aware of digital AI technologies when they are still in school, and that they can choose this as a career,” Datta explains. There are also campaigns to get more girls studying

STEM subjects and, appropriately for an Indian company, a partnership with the Gandhi Gimnázium (Gandhi Secondary School) in Pécs, southern Hungary.

The first Roma minority secondary school in Europe, it has been operating since 1994 to support Roma students, preserve the language and culture, and improve access to higher education.

“My previous experience tells me that growth solves a lot of problems, right? If you’re able to grow, you can give more opportunities to people, and that leads to more growth,” Datta says. He also thinks that today’s employees, as the “mouthpiece of the organization,” are an important element in securing the workforce of tomorrow.

“My personal belief is that we should build our system on equality, and then diversity will be taken care of,” he argues. Human understanding is, therefore, a vital watchword for recruitment, retention, and brand.

“That focus on empathy is what we had from the beginning, while we were creating competencies, creating efficiencies, exploring a lot of different channels to recruit talent. We looked at the things we needed to do to make us more attractive to our customers, but also to other stakeholders,” he says.

Working with what he describes as a “multicultural, multigenerational talent pool,” Datta says the firm needs to keep that empathy and closeness to its employees. There was a period when all anyone with an IT background talked about was “migrating to the Cloud.”

Now, AI is the next big thing. TCS saw its potential early and has pursued a policy of training staff on it so that a) they do not fear the technology and what it might do to their position, but rather can benefit from it, and b) so the business can get ahead of the curve in supporting their clients’ AI needs.

Training for Adaptability

“In January 2020, we opened this office. Our COO visited at that time and said in his speech, five years ago, that ‘artificial intelligence is here to stay.’ That is when we started thinking how we could take advantage of it.” Datta argues that it is important that employees learn adaptability, but also that employers give them the tools to retrain and upskill so they can deploy that adaptability.

“Empathy helps us to address this uncertainty and fear and say, ‘We are all in it together.’ Nobody knows the end state, because it’s continuously evolving, but we can all try to adapt. Our chairman said that AI is not just a technology. It’s a generational shift. It is a significant change in the way of doing things, especially when AI is combined with other technologies.”

And the next big thing? Beyond “applying AI to everything,” Datta suggests it could well be quantum computing.

“There is a state in India that is already investing in creating a Quantum Valley Tech Park , in the way that IT Parks were established in the early 1990s for software development. TCS is one of the early investors and partners.”

If that’s yet to come, what has been the highlight of his past decade in Hungary? Datta is quick to point to the growth of the firm in Hungary. His regional role keeps him busy with travel (he says he has made at least one trip every week this year), but he adds that exploring is one of his great passions, and he views this as a “side perk” of his work. He was twice nominated for the Expat CEO of the Year Award. There is no doubt about the top highlight, however.

“If I have to choose one thing out of everything, it would probably be the recognition that I received last year, because I think that’s the ultimate,” he says, referring to the Knight’s Cross of the Order of Merit of Hungary which was presented to him at the Business Services Hungary 2025 conference by Deputy Minister of the Ministry of Foreign Affairs and Trade Levente Magyar. And his plans for the future?

“In general, we don’t say that we want to double this or triple that, because the head count itself is not a measure anymore. It is more about the services we’re providing, the capability we have created, and the credibility we have established and how we stay perpetually adaptive.”

ROBIN MARSHALL

Prabal Datta

Business Services Center Office Requirements

Becoming More Sophisticated and Complex

As the role of business service centers becomes ever more complex, their office requirements are likewise getting more sophisticated and varied. And that’s before you also factor in the ESG requirements that are now the norm at the high-end of the Budapest and other Central European office markets.

Developers and office owners need to offer products that are flexible and adaptable to changing working habits around office attendance and the maintenance of a core and non-core workforce.

In recent office transactions, tenants and companies looking to establish business and R&D centers have tended to purchase office complexes, reflecting their long-term commitment to conducting business in Hungary.

The Hungarian Investment Promotion Agency was involved in 13 BSC sector projects in 2025, resulting in around 3,230 new jobs.

“These trends confirm that investors increasingly value Hungary not only as a manufacturing base but also as a hub for innovation and services,” says HIPA. BYD, the Chinese international EV manufacturer, has purchased the

32,000 sqm

IP West office complex in District XI for use as its base in Hungary.

“The company will employ over 2,000 people at its new headquarters that will serve as the central hub for BYD’s European operations, driving innovation, covering R&D and high value-added services,” comments Kata Mazsaroff, managing director of Colliers Hungary, who worked on the transaction.

In another office acquisition, Hungarian low-cost airline, Wizz Air, acquired Millennium Tower I, an approximately 18,800 sqm Class “A” office complex located in the Millennium Towers office park overlooking the Danube. The property provides modern office space and around 270 parking spaces in one of the capital’s most established business locations. The transaction stands among the largest recent owner-occupier office deals in Hungary and signals long-term confidence in the local market.

Major Investment

“This is a major office investment in the Hungarian market and a clear sign of Wizz Air’s long-term commitment to Hungary,” comments Valter Kalaus, managing partner of Newmark VLK Hungary. His firm represented the occupier throughout the acquisition and establishment of the business center, delivering strategic advice, technical due diligence, negotiations, and full tenant representation.

The Váci Corridor office sub-market remains the most-favored Budapest development destination, attracting a number of BSCs. In addition to office development, a number of residential projects are also underway in the area, offering direct access by car or public transport (not least the M3 subway line) to work opportunities.

From the tenant perspective, location is key; the office should be easily accessible, and its design should be tailored to the needs of the people based there, providing the right conditions for efficient working. Today, it is also a natural expectation that you should not have to travel long distances to reach

services such as restaurants, cafés and shopping facilities during a break or after work, Kalaus comments.

With limited development in recent years, potential tenants face difficulty finding well-located, suitably sized, ESGcompliant office spaces. Speculative development activity is historically low.

In

2026,

the only sizeable handover will be Centerpoint III, alongside several smaller schemes, meaning that new speculative supply will remain limited.

International institutional investors, mainly from Western Europe, are expected to return more actively to the office market, supported by attractive pricing and competitive yields in a regional context, according to Miklós Ecsődi, head of occupier services for the office market at Colliers Hungary.

“The Budapest office market enters 2026 with limited new supply and a shrinking speculative pipeline; development activity remains dominated by government-led BTS [built-to-suit] projects. With 83% of the 470,000 sqm under construction tied to BTS schemes and vacancy expected to rise, the current cycle clearly favors repositioning and repurposing existing assets to meet evolving occupiers’ requirements,” comments consultancy Cushman & Wakefield.

Basic Expectation

The design, development, and property management of offices in line with sustainability and ESG requirements is now the norm at the top end of the office market and for business centers. Further, accreditation from an independent, third-party sustainability organization

such as BREEAM, LEED, or WELL (which has a range of requirements specific to interiors and well-being) is increasingly a basic expectation from international tenants and staff.

Skanska is a significant developer of office space, attracting business center clients across several Central European capitals.

“I believe selective new developments will do well in prime, well-connected areas where transit options are strong. There’s definitely a clear flight to quality happening; businesses want efficient workplaces that deliver transparent ESG performance,” comments Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska Commercial Development Europe.

“At the same time, redevelopment and deep retrofits are gaining traction as owners look to improve energy performance and user experience to keep their assets valuable for the long haul. For new projects, the winning approach is all about choosing great locations and designing adaptable spaces,” she argues.

“With structural topping out planned for the second quarter of 2026 and completion targeted for the first quarter of 2027, H2Offices Phase II is on track to deliver a sustainable workplace experience for what is next. Once all three phases are completed, the H2Offices complex will offer a total of 67,000 sqm of modern office space,” Luca notes.

“The next wave of office development will be driven by clear demand for spaces that combine efficiency, sustainability, and human experience, buildings that genuinely support productivity and well-being. Redevelopment will also play a growing role as owners upgrade existing stock to meet modern expectations,” she adds.

GARY J. MORRELL

Skanska’s H2Offices Phase II is due to see structural topping out in the second quarter of 2026, with project completion targeted for the first quarter of 2027.

Tesco Business Solutions Powering Retail Transformation From Budapest

In today’s retail landscape, with customer expectations evolving faster than ever, and technology continuing to reshape how businesses operate, success depends not just on what happens in stores but also on the capabilities working behind the scenes to enable smarter, faster, and more connected operations.

solely on process delivery, TBS actively solves complex business challenges and enables better decision-making.

For Tesco, one of the world’s leading retailers serving millions of customers across Europe and beyond, this capability is driven by Tesco Business Solutions, a global organization that brings together talent, technology, analytics, and operational excellence to support and transform the business.

Within the TBS global network, Budapest has emerged as a critical hub of capability, talent, and innovation, playing a central role in supporting Tesco’s Central European markets while contributing to the broader global ecosystem. At its core, TBS is driven by a simple but powerful purpose: to serve its customers, colleagues and the planet a little better every day.

TBS was established in 2004 in Bengaluru, India, with a clear objective: to centralize processes and improve efficiency across the organization. Over time, however, its role has fundamentally evolved.

Today, TBS operates as a strategic partner to the Tesco Group, delivering capabilities across finance, human resources, commercial operations, customer engagement, and digital transformation. Rather than focusing

This shift reflects a broader transformation in how global organizations operate, in which service centers are no longer just support functions but critical drivers of innovation, insight, and business value. Today, the organization operates across multiple locations, including the United Kingdom, Ireland, Hungary and India, forming a network that combines global scale with local expertise.

Since its establishment in 2019, the Budapest center has grown into a dynamic, multifunctional hub supporting Tesco’s operations across Hungary, the Czech Republic, and Slovakia. Teams based in Budapest deliver a wide range of services, including finance, people services, customer care, data analytics and commercial support.

Beyond its functional expertise, the Budapest hub fosters a vibrant community of professionals. Teams are encouraged to innovate, solve complex business challenges, and actively shape how Tesco operates across Central Europe.

At the same time, the site has been steadily expanding its capabilities in analytics, data science, and technology, enabling it to contribute at a more strategic level.

Today, the Budapest hub is not only supporting day-to-day operations but also helping shape how decisions are made across markets by turning information into insights and insights into action.

Data and analytics have become increasingly central to how TBS partners with the wider group. The company expanded its focus on decision science and advanced analytics, recognizing that data-driven insights would play a critical role in shaping the future of retail. Within TBS, teams work with large and complex datasets to generate insights that support everything from customer experience and product selection to operational efficiency and supplier collaboration.

For Budapest, this shift represents an opportunity to move beyond transactional support and contribute more strategically to innovation and transformation across the organization, thereby driving better outcomes across markets.

Continuous Improvement

At the heart of the company is a culture that encourages curiosity, collaboration, and continuous improvement. Wherever they are based, TBS colleagues are encouraged to identify opportunities for improvement and actively contribute to enhancing processes, systems, and ways of working.

This culture is reinforced by TBS’ strong focus on continuous improvement methodologies, which provide teams with the tools and frameworks needed to analyze challenges, identify root causes, and implement sustainable solutions.

This mindset ensures that innovation is not limited to major transformation programs but is embedded in the countless small improvements that colleagues make every day.

What sets the Budapest hub apart is not just the breadth of its capabilities, but also

the diversity and expertise of its people. TBS is a place where everyone is welcome, guided by the principle of treating one another as they would like to be treated. The organization continues its journey to be a great workplace for everyone, where each colleague feels valued, listened to, respected, and represented across all levels. In line with this commitment, TBS will publish its very first Diversity, Equity and Inclusion report in 2026, highlighting the company’s dedication to inclusion and representation.

Recognized by Industry

Over the years, Tesco Business Solutions’ impact has been widely recognized across the business services industry. Among multiple awards, the Shared Services & Outsourcing Network has awarded TBS as the world’s leading Global Business Services organization (World’s Best GBS in 2023 and 2025). It has won regional awards for employer branding and excellence, including recognition as the Most Vibrant Employer at the CEE Business Services Awards. At the same conference, TBS was also recognized for its achievements in AI implementation, highlighting its growing focus on advanced technologies and digital transformation.

As Tesco continues to adapt to a rapidly evolving retail landscape, the role of TBS is set to grow even further. For the Budapest hub, this means strengthening its position as a center of expertise in analytics, business services, and technology, contributing not only to operational excellence but also to the future direction of the organization. By combining global scale with local expertise, and by continuing to invest in people, data, and technology, TBS is helping Tesco build a more agile, insightdriven, and customer-focused business.

BENCE GAÁL

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1133 Budapest, Véső utca 7. (1) 461–8900 budapest.admin.ba1@ roche.com

1134 Budapest, Dózsa György út 61–63. (1) 987-8787 BudapestGBCCommunication @ exxonmobil.com

1138Budapest, Váci út 133. Building E, floor 3 (1) 505-0055 kapcsolat@sanofi.com

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bt.com

Budapest, Hungária körút 40–44. (70) 460-8000

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communication.europe@ genpact.com

Fodor

Budapest, Váci út 187. (20) 827-0862 hu_tbs_communication@ tesco.com

4034 Debrecen, Vágóhíd utca 2. (52) 319-600 HUN_Facility@flowserve.com

1095 Budapest, Lechner Ödön fasor 8. (1) 501-7200 karrier@lexmark.com

Randstad Hungary Kft. (100)

David Alan Vincent, Dorota Zablocka Lívia Tóth

1138 Budapest, Dunavirág utca 2–6. (30) 836-5364 info@randstadsourceright.eu

Ferenc Dákai, Hédi Major, Ferenc Antreter Ferenc Antreter

Anand, Manesh Suryakant Patel, Vékási Tamás

9025 Győr, Csipkegyári utca 2. (96) 550-640 info-hungary@ leadec-services.com

1132 Budapest, Váci út 22–24. (1) 451-8100

5 Socialite Hungarian Musical Living Legend

György Kurtág Honored at 100

The 100th birthday of the great Hungarian composer, György Kurtág, on Feb. 19 was celebrated with a festival of his work, the world premiere of his second opera, “Die Stechardin,” dedicated to his wife Márta, and the release of “Kurtág Fragments,” a compelling new film by director Dénes Nagy.

Born in Lugoj, Romania, to HungarianJewish parents, Kurtág is today one of the world’s best-known composers. He’s the last living significant member of the post-war avant-garde generation that included Pierre Boulez, Karlheinz Stockhausen and György Ligeti.

György Kurtág, the world-renowned composer, two-time recipient of the Kossuth Prize and three-time recipient of the Ferenc Erkel Prize, receiving his honorary doctorate at the Ferenc Liszt Academy of Music (where he was both a former pupil and a professor), on February 6, 2026.

Béla Bartók had been a major influence. Kurtág arrived in Budapest in 1945 to study with him at the Franz Liszt Academy of Music, only to see a black flag on the academy’s flagpole marking Bartok’s death in New York.

Kurtág met his wife, classical pianist Márta Kinsker, at the Liszt Academy. He would perform with her for the next 60 years. A feature of their performances was what The Guardian called “a game of musical Twister,” duets in which the players’ hands interlace with each other. If there’s a better metaphor for marriage, I don’t know what it is.

After the 1956 Hungarian Revolution, Kurtág lived in Paris between 1957 and 1958.

Here, he discovered Samuel Beckett’s plays. The movie shows him working on a performance of “Fin de partie,” a libretto inspired by Beckett’s “Endgame.” Severely depressed in Paris, Kurtág consulted an art psychologist whose suggestion that he use the simplest musical elements or fragments reenergized him and shaped his approach to composing thereafter. Hence the title of the movie.

Kurtág was forced to move back to Budapest in 1958. From the early 1990s onwards, he worked more frequently abroad, in Berlin, Vienna, Paris and the Netherlands. Between 2002 and 2015, he made his home with Márta in a small village near Bordeaux, France, where his son lived.

which we had to compress material,” he tells me. “Kurtág aims to compress the essential into the smallest fragments. It was most Kurtágian for us to have to identify one tiny thing that resembles an entire world out of all that material.”

Nagy is an award-winning Hungarian film director and screenwriter. His first feature film, “Natural Light,” won the Silver Bear for Best Director at the Berlinale in 2021.

“Normally, I choose a subject on my own initiative, but in 2021, the head of the Budapest Music Center, László Gőz, contacted me to discuss making a movie about Kurtág,” Nagy explains.

Total Freedom

“He told me that they didn’t want to treat him as a living legend, saint or mystical figure but a man viewers could feel close to. I really liked this approach, so I said ‘Yes.’ They allowed me total freedom as to what the film might look like.”

Given Kurtág’s age, he was already in his mid-90s when Nagy began, it was likely the last chance to make a film about him. Nagy is certain that the film couldn’t have been made without the influence of Gőz, Kurtág’s gatekeeper. When he started the film, Nagy found it difficult to listen to Kurtág’s music. Now he understands that “the music can’t be separated from his personality. His music is himself. It comes from his deepest thoughts and emotions and is closely connected to his own personal life. When I understood this, I really started to love his music.”

When the couple moved back to Budapest, they were given an apartment at the top of the Budapest Musical Center. Márta died in 2019, leaving Kurtág to devote his life to composing music and overseeing performances and recordings of his work.

A Kurtágian Approach

Before interviewing director Dénes Nagy, I watched his film “Kurtág Fragments.” Although it, too, is fragmented (a pragmatic way of capturing an extremely long creative life), it’s not disjointed. Rather, it moves at a slow, stately pace. On one level, the movie celebrates Kurtág as a remarkably powerful 100-year-old man who has an oddly smooth complexion and a strong, mellifluous voice.

On another, it’s the portrait of a completely dedicated artist whose age is irrelevant. Kurtág is brutally honest with his world-class collaborators and himself. In one deeply moving moment, he admits to hitting his son, who appears in the film and doesn’t look the happiest of fellows, every day between the ages of four and 10 and describes himself as a “sadist.”

Making the movie, director Nagy’s biggest challenge was to edit the

hours

of footage he’d shot down to a running time of a little under two hours.

“Out of 100 potential scenes, I had to choose one. That was the ratio to

Nagy says he feels privileged to have come to understand Kurtág’s music by filming him for so many years. The musical giant’s example has also taught him something profound about his own work.

“What’s significant for me is that Kurtág is someone living a totally isolated, ascetic life who thinks about music all the time. Music is life and death for him. He lives in a secluded world which is somehow vast and there’s no place for the mundane. I don’t think his example should be followed. What he does is unique and his life is not a happy one. But it’s very inspiring to spend so much time with someone who is still searching at such a great age, believing he will find and understand something. Even if you know you have to follow your own path.”

Thinking about Kurtág in his eyrie high above Budapest, I wondered if there was something quintessentially Hungarian in his isolation.

“Not at all,” Nagy says. “Kurtág speaks French, English and German as well as Hungarian. His apartment in the Budapest Music Center is a place of pilgrimage. People come from all over the world to rehearse and record with him. His calendar is full for months. It’s vital for Budapest and the world that he can be accessed.”

“Kurtag Fragments” is currently showing in Hungarian cinemas nationwide.

DAVID HOLZER

Award-winning Hungarian film director and screenwriter Dénes Nagy, who helmed “Kurtág Fragments,” the centenary tribute film marking György Kurtág’s remarkable musical life.

Photo by Tamás Dobos

Photo by Márton

Jazz Icon Mario Biondi to Play Margaret Island

Mario Biondi, an iconic figure on the international soul and jazz scene, will take the stage at the Margaret Island Theater on May 23, for the 3rd Jazz and Wine Festival.

The event organizers say it’s worth arriving early for the concert, as the festival, in keeping with its tradition, features smaller jazz concerts during the day, as well as presentations from several Hungarian wine regions, allowing visitors to sample the country’s diverse wine culture accompanied by great music.

“The world-famous Italian singer’s grand evening concert, meanwhile, will be built […] on atmosphere, rhythm, and a deeply resonant musical presence: his husky yet smooth jazz baritone, his refined musical world, and his Mediterranean passion promise a unique concert experience at one of Budapest’s

most enchanting outdoor venues,” the Margaret Island Theater promises.

Biondi is a regular guest at international festivals and iconic venues from Europe to Japan, having collaborated with artists such as Burt Bacharach, Chaka Khan, and Earth, Wind & Fire.

“His deep, rich baritone, while contemporary in nature, simultaneously evokes the tradition of classic soul and the

elegance of modern jazz. This voice is in no hurry, does not seek to conform, and does not fade into the background. It demands attention,and it gets it,” the organizers say.

Raised Amid Music

Biondi was born in 1971 in Catania, Sicily, into a family of musicians. His father, Stefano, was a well-known singer in his own right, so music

surrounded him from childhood. By the age of 12, he was already performing on stage and, shortly thereafter, began working as a session singer, all the while consciously shaping a musical world in which different genres could intertwine. He achieved his international breakthrough in the 2000s, when his unique tone and refined style captured the attention of industry professionals and audiences worldwide.

Biondi’s concerts let the music take control of the tempo. Songs unfold slowly, the rhythm isn’t pushy, and the emphasis is on the details: a bass line, a wind instrument’s entrance, a drawn-out phrase that lingers in the air for a long time. It is an approach that works particularly well in the early summer evening silence of the Margitsziget Theater, with the rustling of leaves and the chirping of crickets.

Alongside the singer’s bestknown songs, the program on May 23 will also feature compositions that best capture the essence of his musical world. Soul, jazz, funk, and R&B come together in an elegant, instinctive sound, where the band and the vocals balance rhythm, sound, and presence.

Tokaj Art Wine’s Spring Premiere Celebrates 1st Wines of 2025

Spring is not only the season of nature’s renewal; it is also a time of new beginnings, fresh flavors, and exciting discoveries in the world of wine. The Spring Premiere at the Celebration of Hungarian Wine, organized by Tokaj Art Wine, offers exactly that: a glimpse into the first, still-evolving wines of the 2025 vintage, set in a unique and inspiring environment in Tállya, one of the oldest wine-producing settlements in Tokaj.

There are few occasions when wine lovers can taste wines before they are even bottled. This makes the event truly special. Visitors not only sample finished wines, but also gain insight into one of the most exciting stages of winemaking: the moment when the wine is still developing, evolving, and carrying the promise of the future. The event brings together leading wineries from Tokaj and other renowned wine regions, including iconic names such as Sauska, Szepsy,

Royal Tokaji, Patricius, Eszterbauer, Maul Zsolt Winery, Demeter XY, Káldi Winery, and Tokaj Art Wine’s own emerging estate. The selection is diverse and professionally outstanding, offering a comprehensive view of Hungarian winemaking.

On Friday, March 13, participants joined a unique experience: the choreography of wine blending. This interactive program allowed guests to create their own cuvée in small groups, exploring balance, proportion, and style through hands-on experimentation.

The next morning, sparkling wines took center stage. The Tokaji sparkling brunch highlighted an increasingly important direction for the region, while carefully paired dishes enhanced every flavor experience.

The weekend’s highlight was the Saturday walk-around tasting, where one ticket granted unlimited access to

wines. Guests could freely explore, meet winemakers, and discover unreleased samples that preview future vintages.

A Celebration Where Tradition Meets Innovation

The venue, the Barka Gallery Hotel and Restaurant, provided a perfect setting that united art, gastronomy, and wine. The weekend became a celebration of Hungarian wine, where tradition and innovation met. The chief patron was Bálint László, a well-known Hungarian wine educator, consultant, and tasting host and ambassador for Tokaj.

The Spring Premiere is a tradition in the making and will be held each year on the Saturday around the March 15 commemoration. The next event will take place on March 12–13, 2027.

This event is for wine lovers and curious explorers alike, offering discovery,

inspiration, and the chance to taste the future in every glass. It creates a rare meeting point for professionals and enthusiasts, encouraging dialogue, learning, and shared experiences.

Conversations with winemakers provide a deeper understanding of terroir, vintage conditions, and stylistic decisions. Beyond tasting, the event invites reflection on the future of Hungarian wine, showcasing innovation while honoring heritage. Each glass tells a»story of craft, dedication, and vision.

Guests leave not only with memorable flavors, but also with a deeper connection to the people and places behind the wines. Whether discovering new favorites or revisiting admired producers, every moment contributes to a rich and engaging experience.

The event invites guests to celebrate the present while tasting what lies ahead. Join the journey and experience the evolution of wine in its exciting form.

Italian baritone Mario Biondi in concert.

Photo by CettiliPari

Gábor Farkas: Tradition, Innovation and Eastward Outreach

Gábor Farkas, described as one of the most outstanding pianists of his generation, became the rector of the world-renowned Liszt Ferenc Academy of Music in May 2025, following a proposal from its Senate. Here he talks with the Budapest Business Journal about the importance of music in life.

A widely recognized pianist of the Romantic repertoire, and recipient of the prestigious Steinway Aritst title, Farkas has won both the Junior Prima and Ferenc Liszt prizes, as well as numerous national and international competitions. He is a Doctor of Liberal Arts (an equivalent to a Ph.D.) and has been a professor at international universities. He is currently head of the keyboard and harp department at the academy, as well as its rector. In addition to respecting tradition, Farkas also places great importance on renewal and professional excellence, as he promised in his application. He is optimistic about realizing his plans and counts on the support of the institution’s governing body and the assistance of sponsors to achieve those goals.

BBJ: Winning this title presupposes both domestic and international studies and experience. How did this artistic career actually begin?

Gábor Farkas: Seeing my persistent interest and diligence in learning the piano, my parents naturally supported me from a musical family in pursuing music. Thus, a straight path led to the Secondary School of Music in Miskolc and to the Liszt Academy. I completed my studies there as a student of Sándor Falvai and Attila Némethy, earning a diploma as a piano performer

and teacher. During this time, I also had the opportunity to study at renowned international universities.

BBJ: Indeed, from 2017, you spent four years in Japan as a professor at the Tokyo College of Music. This must have been a formative period for you.

GF: My wife is Japanese. As the father of two talented sons, the years we spent in Japan played a defining role in our lives. It is no coincidence that we developed a strong affinity for Eastern culture. I am extremely impressed by the diligence and sense of responsibility

Culture Matters

A regular look at culture issues in Hungary and the region

toward work that Eastern people exhibit. In Japan, it is important to people that every minute counts.

BBJ: One of the most important elements of your application for the rector’s position is the promotion of openness toward East Asia. Why do you consider this goal so important?

GF: During my career as a performing artist, I have had the opportunity to give concerts in, among other countries, China and South Korea. I experienced firsthand the remarkable enthusiasm for classical music among the people living there. Young people begin learning music from as early as kindergarten. They experience the profound impact of music education on the soul and on fostering community life. It is truly remarkable how significant our Kodály method is in the lives of both children and older generations. Music permeates almost every moment of their days. During my masterclasses, I have met extraordinarily talented young people. We provide these students not only in their home countries but also at our institution, founded by Ferenc Liszt, with opportunities to carry our centuries-old musical tradition and educational system to the Eastern world

BBJ: Regarding this opening to the East, have any significant results been achieved with a view to the future?

GF: Yes, on March 24-25, the orchestra of the Beijing State Conservatory of Music will visit us. Linked to the other important element of my rectorial program, the importance of orchestral training, they will give a joint concert with Liszt Academy students on this occasion. It promises to be an exciting program, rich in musical experiences.

Preserving a Legacy, Building International Relations

Szilvia Besszer, the director of the Cziffra Festival, a Budapest-based classical music festival honoring the legendary pianist György Cziffra and supporting young musicians, talks to the Budapest Business Journal about its aims and history.

ÉVA BODOR

BBJ: What was behind the creation of the festival?

Szilvia Besszer: It was founded in 2016 by János Balázs, a Kossuth-Prizewinning pianist, Steinway Artist, and university professor, who also serves as the festival’s artistic director. The aim was to create a worthy memorial to the world-famous pianist György Cziffra, who came from a Roma musician family and endured a difficult childhood. Cziffra’s artistry was known worldwide

as a unique embodiment of the dazzling piano technique of Ferenc Liszt and an inimitable gift for improvisation.

The festival started as a program lasting only a few days, but has attracted an ever-growing audience thanks to its market positioning and high-quality programming.

Today, in addition to Hungary, musical events are held in 22 countries, at venues such as New York’s Carnegie Hall and London’s Cadogan Hall.

As a result, the Cziffra Festival is a pioneering festival that places a special emphasis on building international

cultural relations. It has collaborated with partners such as the Royal Philharmonic Orchestra, the Orchestra Philharmonique de Radio France, and the Orchestra de la Suisse Romande.

BBJ: What is unique about the festival?

SZB: It has become a defining event in the world of classical music today. It is not merely a series of concerts, but a multifaceted cultural project that undertakes numerous commitments, represents values and causes, while preserving Cziffra’s intellectual legacy. A very important aspect is its versatile support for young artists, who take turns in performing on the Cziffra Festival stage, like Martha Argerich, Mischa Maisky, Vadim Repin, and Jose Cura.

The real sensation this year is that, after 10 years, the violin prodigy Leonidas Kavakos will perform again in our country on May 25 in the Grand Hall of the Liszt Academy of Music.

ÉVA BODOR

Gábor Farkas

Photo by Zsófia Raffay

Szilvia Besszer, general manager of the Cziffra Festival.

Photo by Szilvia

Csibi

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

British Chamber of Commerce in Hungary (BCCH)

The BCCH invites members to its K&H Morning Seminar on macroeconomic outlooks with Dávid Németh, chief economist at the bank, followed by a Q&A and networking session. The talking points will include the post-Hungarian election environment, geopolitical impacts and the overall economic outlook for the Hungarian marketplace. • When: Friday April 24, 10 a.m.-noon • Where: Lechner Ödön fasor 9.

Belgian Business Club in Hungary

(Belgabiz)

Belgabiz is pleased to invite guests to its networking event, “Emplawyer 2026: From Digital HR to Transparent Pay: What Employers Should Prepare for Next,” featuring a short, practical workshop led by experts from SmartLegal Schmidt & Partners. The professional program will cover two key topics: Digitalization in Employment: Paperless Employer? What the law allows in 2026; and Pay Transparency & Equal Pay in 2026. A buffet dinner will follow the professional sessions.

• When: Thursday, April 16, 6-9 p.m.

• Where: Three Corners Downtown Hotel, Október 6 u. 20, 1051 Budapest • Fee: members, free; non-members, HUF 21,000 (no VAT)

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH will host the “SAFE Conference: Canada-EU Security and Defense Partnership” in Budapest, bringing together policymakers, defense experts, and industry leaders to discuss the future of transatlantic security cooperation. The conference will focus on the evolving strategic partnership between Canada and the European Union, as well as the growing role of defense industrial collaboration, technological innovation, and supply chain resilience in strengthening security across the transatlantic region. The event takes place against the backdrop of the European Union’s Security Action for Europe (SAFE) initiative, a major defense instrument designed to support joint procurement and strengthen Europe’s defense industrial capacity. Canada is set to become the first non-European country to participate in the program, highlighting the deepening strategic cooperation between Canada and the EU. Confirmed high-level speakers will including John Hannaford, the personal representative of the Canadian Prime Minister to the European Union, Colin Barker, defense exports executive director at Global Affairs Canada, Tomasz Husak from European Commission and armament directors from the region, as well as representatives from Rheinmetall Canada, CAE Defense & Security, Eutelsat, General Dynamics, L3Harris Wescam, and Blackberry Canada. For the detailed program and further information, see the conference website at: safeconferencecanadaeu.com • When: May 12-13

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH invites guests to its annual summer networking garden party, “La Vie en Rose: Horizon Edition,” which is returning to the beautiful Buda hills. This elegant evening celebrates the French art of living, featuring a cocktail dinner, live music, culinary tastings and exhibition stands, while connecting with members of the Hungarian–French business community in a relaxed garden setting overlooking the city.

• When: Friday, June 12, 5-10 p.m. • Where: Normafa Rendezvényház, Hegyhát út 16., 1121 Budapest • Fee: Members HUF 41,000 (+ VAT); non-members HUF 59,000 (+ VAT)

Swedish Chamber of Commerce in Hungary (SCCH)

“Women’s rights are not only about equality, at their core, they are about human rights, democracy, and justice,” emphasized Diana Madunic, Ambassador of Sweden to Hungary, in her opening remarks at the International Women’s Day event jointly organized by SCCH and the Embassy of Sweden, and WeAreOpen (Nyitottak Vagyunk). The event celebrated the strength of women and explored how to break the glass ceiling. WeAreOpen CEO Nóra Várady noted how she often encounters the attitude that gender equality and the gender pay gap linked to it are considered “problems that were solved long ago.” However, when the pay gap is examined based on data, it becomes clear that significant differences still persist. Film director and screenwriter Orsolya Nagypál emphasized that in Europe and among streaming platforms, an increasing number of programs support female creators and help them gain opportunities to showcase their work and develop their professional skills. The challenges, however, have not disappeared. When a female director or producer asks for more funding for a project, her reasoning is often questioned, while similar requests from male colleagues are frequently explained simply by saying that they “have a vision.” Viktória Máté-Cselik, product development leader at Ericsson Hungary, highlighted the importance of confidence among female employees. She spoke about how their organization consciously supports this through roundtable discussions, networking opportunities, and mentorship programs. Beáta Nagy, a professor at Corvinus University of Budapest, presented findings from her new research examining the role of executive search firms in reproducing gender inequality. She pointed out that many organizations rely on headhunters to identify suitable candidates, yet during the selection process, women are often excluded when compiling the initial list of potential candidates. This is because they are perceived as a higher risk, which recruiters aim to minimize. She also spoke about the challenges women face in academia, noting that patterns similar to those seen in the business sector often appear in universities as well. The discussion was moderated by psychologist and researcher Zsuzsanna Garaj. “A lot also comes down to girl power,” added Márta Böddi, director at the SCCH, highlighting that in the pursuit of equality, it is important for women to support and uplift one another.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK invites guests to its 14th Consultation Day on April 23, from 9 a.m.-5 p.m. The event offers an opportunity to learn about the chamber and participate in personalized consultations on the benefits of chamber membership, services for member companies (events, programs, and projects), business partner search, search for business locations in Germany, M&A, VAT refunds in Germany and the EU, Extended Producer Responsibility (EPR) in Germany, PPWR (the new EU Packaging Regulation), energy efficiency training, and leadership development and soft skills training. Presentations are also available on the business climate (the outlook and trends in the German economy, as well as developments in German-Hungarian economic relations), the benefits of active DUIHK membership ( visibility, B2B platforms, and business opportunities), R&D in Hungary (proven business models and financing solutions), and AI (efficiency, implementation, and organizational impacts). Participation is free, but prior registration is required via the chamber website.

• Fee: Free of charge, subject to prior registration.

Italian Chamber of Commerce for Hungary (CCIU)

How can grant funding become a real strategic advantage? Join CCIU and GoodWill Group and discover how to turn grants and 0% financing into real drivers of growth and investment. During the event, you will gain practical insights into how energy efficiency, digitalization, automation, AI, and strategic marketing can boost competitiveness and unlock the right funding opportunities. The morning includes a complimentary light refreshment, plus an introduction to Harsányi Winery and Dűlőbisztró with a tasting of selected Tokaj wines. CCIU members will receive a custom funding map and 10% off GoodWill Group’s services.

• When: April 16, 10 a.m. • Where: Italian Chamber of Commerce for Hungary, Lónyay u. 18-A, 1093 Budapest • Fee: Free of charge, subject to prior registration.

Hungarian-Norwegian Chamber of Commerce (HNCC)

Kreativ Dental, a member of the Hungarian-Norwegian Chamber of Commerce, participated with its own stand at TravelXpo 2026, Norway’s largest travel exhibition, held from March 20–22 at NOVA Spektrum. The Budapest-based clinic specializes in high-quality dental treatments, including implants and cosmetic dentistry. The stand attracted strong interest from visitors, who had the opportunity to learn more about its services and international patient care.

American Chamber of Commerce in Hungary (AmCham)

In May, AmCham’s biannual HR Dream Day conference will return, bringing together CEOs and HR professionals to explore the forces fundamentally transforming today’s business world. From the growing impact of AI through pay transparency to dramatic transformations, the conference will focus on the trends which are reshaping companies and redefining the strategic role of HR. With a special spotlight on change management, as well as organizational and leadership resilience and effective response, the conference will examine how businesses can adapt, stay competitive, and stay ahead of the ongoing transformation. Alongside sharing insights on talent retention, regulatory change, and practical ways to navigate disruption with confidence, the event also offers an excellent opportunity to connect with fellow leaders and professionals, to exchange perspectives and experiences, and to expand your professional network.

• When: Tuesday, May 12, 9 a.m.-2:30 p.m.

• Where: Öbölház, Kopaszi-gát 2, 1117 Budapest

• Fee:  Members HUF 44,990 + VAT / person; non-members HUF 54,990 + VAT / person

March 27, 2026

By invitation and consideration event@bbj.hu