Leading industry actors explain the growing influence of sustainability in all aspects of real estate. ESG principles and practices are now a central motive and requirement for business and technical practices throughout the lifespan of a given real estate development. 10
ESG Now Crucial to Sourcing Finance
Commercial lenders have become increasingly influential in shaping ESG practices in the real estate sector, particularly through the conditions they attach to financing, with banks and investors responding to regulatory obligations and evolving risk assessments. 14
What the Hekk? In Search of Hungary’s Summer
Fish Treat
Back from his summer holidays, our British writer about town, David Holzer, finds himself on a Budapest break from his usual haunts in Szeged, and determined to keep the summer vibes going. 29
Making a Virtue of Flexibility
It has been a busy couple of years for CPI Property Group, marked by the acquisitions of Immofinanz AG and S Immo AG. That momentum has shown little sign of slowing with the big-ticket sale of the Budapest Marriott Hotel this summer, as CPI Hungary country manager Mátyás Gereben tells us inside. 7
Hungarian Economy Shows Weak Vital Signs
The economy practically stagnated in H1, although second-quarter data slightly compensated for the Q1 figures. However, 2025 economic growth is still expected to be way below the level the government calculated in drawing up this year’s budget. 3
Hungary’s Role in Global Rollout of Citi’s AI Tools
AI Accelerators from Citi Hungary are supporting the bank’s global generative artificial intelligence adoption strategy, putting AI tools in the hands of colleagues across the world to boost productivity. 8
EDITOR-IN-CHIEF: Robin Marshall
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If you have children, there is an inevitability that September will feel like the start of something, a beginning, rather than just the ninth month of 12. That's true whether Junior is heading for a new school or “just” a fresh academic year. It is debatable whether it was our children or my wife and I who felt more pain at having to get up early enough to manage the school runs. It doesn’t help that the kids go to two different schools in two different towns, neither of which is the one where we live. Why on Earth would we make life easier for ourselves? Growing up back in the United Kingdom, there was a sense that our household revolved around September. It wasn’t just that there were, at various times, four of us going back to school (my parents were much more sensible, and, although there was a 14-year gap between first and last born, by and large we all went to the same primary and secondary schools). My father was a headmaster, meaning the start of the school year really was a big day for him. Did he have all the teachers he needed in place? Was there cover for the inevitable sickness? If there wasn’t, would his schedule allow him to step in? When were the first governors’ and parents’ meetings? Most of all, what were the latest round of regulatory changes introduced by the government of the day that he would need to understand and implement? Half-term breaks and Christmas were welcome, but hardly enough for him
to switch off; that only came at the start of summer. September, therefore, was the end of that respite. I had always wondered why an academic year would start in September rather than January. It seems it was driven by the agricultural cycle of the year, before schooling became compulsory. Attempting to persuade parents to release their children to the classroom during the spring and summer, when there were seeds to sow or crops to harvest, was a fool’s errand. By the fall, in comparison, there was no need for all hands to work, so it made sense to start here, once education became mandatory, in the hope that parents would get used to the idea, and attendance levels could build.
For businesses that operate on a calendar year basis, I guess September brings with it the not inconsequential start of the budgetary planning phase for the year to come. For employees, it is back to the grindstone after some (hopefully) hard-earned rest and relaxation. The leaders among you may have finally been able to take a break from the mundane day-to-day long enough to free up some bandwidth to start thinking about targets and developments. For all of us, it is time for a deep breath and the push on toward December. Christmas will be with us before you know it!
Robin Marshall Editor-in-chief
THEN & NOW
In the black and white photo from Budapest’s District V, dated 1960, students gather for the opening ceremony of the school year at the ELTE Apáczai Csere János Practice Primary and Secondary School on Papnövelde (today Eötvös Loránd) utca. In the modern color image from Aug. 31, 2025, State Secretary for Families Zsófia Koncz, of the Ministry of Culture and Innovation and the region’s Fidesz MP, delivers a speech at the 50th anniversary school-opening ceremony of the Hunyadi Mátyás Primary School in Tiszaújváros.
Photo by János Vajda / MTI
Photo by Gyula Nagy / Fortepan
1News •
macroscope
Hungarian Economy Shows Weak Vital Signs
The economy practically stagnated in the first six months of the year, although secondquarter data slightly compensated for the Q1 figures. However, 2025 economic growth is still expected to be way below the level the government calculated when it drew up this year’s budget.
Value of Foreign Trade in Services in Hungary (H1 2023/ H1 2024/ H1 2025)
At current prices, in millions of euros
Source:
The volume of Hungary’s gross domestic product grew by just 0.1% according to raw data and by 0.2% according to seasonally and calendar adjusted and reconciled data in the second quarter of 2025, compared to the corresponding period of the previous year.
Compared to Q1 2025, the economic performance increased by 0.4% according to seasonally and calendar-adjusted and reconciled data. In the first half of the year, the economy stagnated according to raw data and was 0.1% lower according to seasonally and calendaradjusted and reconciled data compared to the same period of the previous year, the latest data released by the Central Statistical Office (KSH) reveals.
“Although the latest quarterly data were slightly more favorable than our expectations, the half-year data is in line with our forecast. We expected that the first-quarter decline would be compensated for by the second quarter. Thus, the economy practically stagnated in the first half of the year compared to the same period last year,” says Dávid Németh, senior analyst at K&H, evaluating the data released on Aug. 26.
In line with expectations, services drove the Q2 economy, with the information and communication sector performing particularly well. The monthly data also showed that industry performed poorly, dragging down GDP growth. Additionally, agriculture was hindered by adverse weather conditions, further slowing growth.
Regarding the demand side of GDP, Németh notes that household consumption may have contributed to second-quarter growth, while investments and net exports may have held the economy back. Still, he believes a further recovery can be expected in the next two quarters based on the current outlook.
Positive Signs?
“We see positive signs in the construction industry, and within industry it seems that car and battery production may have passed the bottom, so the latter sub-sectors may also contribute positively to the GDP figures for the third and fourth quarters,” he says.
However, the performance of agriculture remains very uncertain. The weather has been more favorable in recent weeks, which may result in final farm produce indicators being more favorable than the current estimates.
On the demand side, household consumption remains decisive, although the increase in net real wages is slowing, which carries some risk.
“Government stimulus measures may also improve performance, although their effect may only be partially felt in
The decline in investments may be cushioned by ongoing large-scale corporate projects,” the K&H expert
adds. He expects overall GDP growth of around 0.5% in 2025 compared to the previous year.
The analysts at MBH Bank agree that the Q2 data was better than expected. Overall, they argue that this indicates the Hungarian economy is still capable of recovery. However, growth is slow and selective, driven mainly by domestic consumption and the services sector, while agriculture and industry continue to face challenges.
“As we suspected, services and construction probably also contributed positively to the economy’s secondquarter performance. However, industry still failed to expand, as did agriculture,” the analysts wrote in a comment.
Recession Avoided
Looking for a silver lining, Erste Bank’s head analyst Orsolya Nyeste notes that at least the Hungarian economy has once again managed to avoid a technical recession. Altogether, it is positive that the actual data was slightly better than expected, and that the economy did not shrink in two consecutive quarters in a quarterly comparison. However, the overall picture of stagnation remains unchanged for the time being.
“A better performance would be needed in the second half of the year to achieve the full annual GDP growth of 0.8% that we are currently forecasting. However, the risks (the effects of the tariff war, a weakening labor market) continue to point to the downside. The big question for the period ahead is to
what extent the government’s targeted measures, [those] already known and [those] expected to come, will be able to offset these negative risks,” Nyeste says.
At the same time, investments are still performing poorly: according to the raw data, the volume in the second quarter of 2025 was 8% lower than in the same period of last year. Compared to the previous quarter, and based on seasonally adjusted data, the total value of investments decreased by 1.1% at comparable prices.
There was 11.8% less investment in the first quarter than in the first three months of last year, and the 2024 benchmark was already very weak: it had shown a 14.3% decline compared to the first quarter of 2023, and the 2023 data represented a 0.4% decrease compared to the beginning of 2022. The latest data now marks the 11th consecutive quarter with less investment than in the same period of the previous year.
More bad news was that the volume of industrial production fell by 4.9% in June compared to the same month in the previous year and by 1.2% compared to May 2025. Data from the KSH shows that there was a slight increase in the production of food, beverages and tobacco products, as well as computers, electronic and optical products, and electrical equipment. In contrast, output from vehicle manufacturing fell significantly.
ZSÓFIA CZIFRA
Ukraine’s Pipeline Attacks Raise Tensions With Hungary, Slovakia
Ukrainian attacks on Russian energy infrastructure damaged the Druzhba (Friendship) pipeline on three separate occasions in August, sparking outrage in landlocked Hungary and Slovakia, which depend on the route for much of their oil resources from Russia.
the energy infrastructure supplying member states as a “matter of EU security,” adding that the commission was “ready to take measures to protect critical energy infrastructure such as electricity cables and oil or gas pipelines or facilities.” Szijjártó demanded to know where that support was now.
“After all three strikes, it [the EC] has remained silent, taking no steps to defend the energy supply of member states,” the letter protested. “Given that in the past years, the EU and its member states have provided hundreds of billions of Euros worth of support to Ukraine, we find Ukraine’s actions, which severely threaten the energy security of Hungary and Slovakia, completely unacceptable,” the letter complained.
Acting of its own accord, the Hungarian government proceeded to ban the commander of the Ukrainian military unit responsible for the attacks on the Druzhba’s infrastructure from Hungary and the Schengen area for three years, claiming his presence was a “national security risk.”
The first incident took place on Wednesday, Aug. 12, when Ukrainian drones struck the Unecha junction and pumping station in Bryansk Oblast, causing a fire which disrupted the supply of crude deliveries to Hungary until Friday, Aug. 15. Minister of Foreign Affairs and Trade Péter Szijjártó condemned the targeting of the pipeline.
The next attack took place three days later on Monday, Aug. 18, when the Nikolskoye oil pumping station in Michurinsky District in Tambov Oblast was attacked by Ukraine’s 14th Drone Regiment, this time causing a complete interruption of Druzhba pipeline flow.
Szijjártó labeled the strike “against [Hungary’s] energy security” as “outrageous and unacceptable!” After repairs to a crucial transformer station, Russian Deputy Energy Minister Pavel Sorokin informed Szijjártó that the flow of supplies had been restored two days later.
Finally, on Friday, Aug. 22, the Unecha distribution and pumping station in Bryansk Oblast was targeted again, this time by rocket fire in addition to drone strikes, causing more significant damage and leading to a more prolonged disruption of supply. According to Szijjártó, restoring transit deliveries of Russian crude to Hungary would take “at least five days.”
In response to the repeated attacks, Szijjártó and his Slovak counterpart Juraj Blanár sent a letter to EU High Representative Kaja Kallas and Energy Commissioner Dan Jorgensen requesting support in ensuring supply security.
Infrastructure Integrity
The letter recalled a European Commission declaration issued on Jan. 27 of this year, which called on third countries to respect the integrity of
“The latest attack has been extremely serious [...], repair works took such a long time, that [Hungary] nearly had to use its strategic or emergency reserves,” Szijjártó said, adding that “an attack against our country’s sovereignty [...] cannot pass without consequences.”
Roundup Crisis
The commander was confirmed to be Robert Brovdi, head of Ukraine’s Unmanned Systems Forces, who is ironically of Hungarian descent and goes by the call-sign “Magyar.” Brovdi responded defiantly, accusing Hungarian authorities of “not defending the sovereignty of Hungary,” but “defending [their] own dirty pockets.
“If some accident were to happen, and some poles fell over or some power lines broke, Ukraine would come to a stop.”
By buying filthy, cheap raw materials, you are complicit,” he said. “Your hands are soaked in blood up to the elbows, and we will not forget it.”
Accession Connection?
On Sunday, Aug. 24, Ukrainian President Volodymyr Zelensky suggested that the attacks on the pipeline might be connected to Ukraine’s accession to the European Union, which Hungary has consistently resisted. He was asked whether the attacks were meant to put
pressure on Hungarian Prime Minister Viktor Orbán to lift his veto on Ukraine’s accession negotiations.
“We always supported the friendship between Ukraine and Hungary, and now the existence of the friendship depends on what Hungary’s position is,” Zelensky responded.
“We firmly reject the Ukrainian President’s intimidation,” Szijjártó replied. Earlier, the foreign minister had made insinuations of his own, reminding “Ukrainian decision-makers [that] electricity from Hungary plays a vital role in powering your country.”
On Aug. 18, State Secretary Gábor Czepek provided precise figures to emphasize this point. While 40% of Ukraine’s electricity imports in 2024 came from Hungary, the amount of gas delivered between January and August this year was nearly equal to the entirety of last year’s, the volume of which had doubled between 2022 and 2023.
Yet, Orbán said that Hungary does not have an interest in Ukraine collapsing, “even though we could bring it about in a single day,” he told the Patrióta YouTube channel in an interview on Aug. 12. “If some accident were to happen, and some poles fell over or some power lines broke, Ukraine would come to a stop,” the prime minister insisted.
wounds and head injuries, according to kárpátalja.ma. The blast triggered a large fire and released hazardous smoke at the facility, Forbes reported. The attack has endangered the jobs of thousands of workers, including approximately 2,500
Hungarians. Local management has already initiated discussions with the company regarding the relocation of production. Miroslav Bilecki, head of the Transcarpathian Military Administration, confirmed the injury count in a post on his Facebook page.
NICHOLAS PONGRATZ
Photo by János
Nemes / MTI
Flex Missile Strike Threatens 2,500 Hungarian Jobs
A Russian missile attack in Ukraine struck the assembly plant of American-owned company Flex in Mukachevo (known to Hungarians as Munkács, 290 km east of Budapest by road) on Aug. 21, injuring 23 people, including cases of shrapnel
Signs of Recovery Show in Investment Markets Real Estate Matters
A biweekly look at real estate issues in Hungary and the region
Signs of recovery in the Hungarian investment market were clearly visible in the first half of this year: including the sale of the Budapest Marriott Hotel, investment volume for the period reached EUR 450 million, surpassing the total for all of 2024 according to Colliers.
of the Marriott International building that is expected to close in the third quarter, and is the first transaction to exceed EUR 100 mln since 2022; the purchase of BakerStreet 1; and, in the logistics segment, the acquisition of 84,000 sqm in two HelloParks buildings.
“Total investment volume could reach between EUR 700 million and EUR 800 mln this year, effectively doubling the 2024 figure,” says Balázs Zelles-Görgey, head of capital markets at Colliers.
“Still, commercial real estate investors are seeking stability, and geopolitical volatility and regional uncertainties may continue to affect transactions in the remainder of the year. It is hoped that the upward momentum will not be disrupted by the parliamentary elections scheduled for spring 2026 in Hungary. Historically, investors tend to pause and wait to see the direction of the new government during such periods,” he adds.
The sale of the Budapest Marriott Hotel was announced in June, with a consortium led by the Diorit Private Equity Fund and BDPST Group acquiring Duna Szálloda Zrt., the firm that owns the building, from CPI Europe. The Diorit fund is managed by Gránit Asset Management, itself part of BDPST. The transaction was reportedly worth EUR 115 mln.
Cushman & Wakefield and CBRE both put the total investment volume for the first half year at EUR 280 mln, representing a 55% year-on-year increase. The consultancy sees the investment market as gaining momentum with several transactions in the pipeline. The upturn in the market is primarily driven by three transactions: the purchase
iO Partners have similarly traced an investment market upturn with EUR 300 mln in investment activity for the half-year. This breaks down to 62% by domestic investors and 38% by international players; activity from the latter camp is rising, although the former still leads the market.
“Transactional activity in the first half of the year has already exceeded the total for all of last year. The pipeline remains strong across all asset classes, and we are on track to close 2025 with the highest annual volume in the past three years,” comments Gábor Zeller, head of capital markets at iO Partners Hungary.
Turning a Corner
Markets have clearly turned a corner, agrees Benjamin Perez-Ellischewitz, principal at Avison Young Hungary.
“We measured around EUR 5.1 billion of investment for the CEE region (the Czech Republic, Hungary, Poland, Romania and Slovakia) in the first half of 2025, and we expect to pass the EUR 11 bln level for the full year,” he tells the Budapest Business Journal.
“Hungary should offer a risk premium due to the political landscape, permanent fight with the EU institutions and the unorthodox diplomatic alignment of the country. For others, it is not a question of relative pricing; they don’t want to hear about us as long as Hungary is not normalizing its relationship with the EU. On a full 2025 basis, Hungarian volumes should get close to the EUR 750 mln800 mln level,” Perez-Ellischewitz adds.
Across the region, the Czech Republic recorded the highest H1 CEE volume, at EUR 2.2 bln, representing a 125% rise in investment according to Gábor Borbély, head of research for CEE & Hungary at CBRE. Yields are moving in for the Czech market, with no yield compression expected for Hungary, with a yield gap of 150-170 basis points for the industrial sector between the two countries.
Zelles-Görgey of Colliers sees possibilities that the still-nascent Living sector (rental housing, student accommodation, and senior homes) will eventually develop into a standalone investment segment modelled after Western Europe. Early signs of this are already visible, with growing investor interest in the sector.
In the first half year, the most soughtafter sectors were hotels, representing 37%, followed by office buildings at 32%, and industrial at 25%. It is seen as a positive sign that, according to market sources, the HelloParks deal was valued at around EUR 85 mln-90 mln, the Baker Street office transaction exceeded EUR 50 mln, and the Marriott Hotel deal surpassed EUR 110 mln.
Colliers estimates prime office yields at 6.5%, prime logistics yields at 6.75%, and shopping centers and retail parks at 7%. For hotel transactions, further market activity is needed to establish a realistic benchmark. Yields are expected to remain stable.
Signs of Stabilization
Cushman & Wakefield sees yield stabilization on the horizon, with prime office yields at 6.25% and industrial at 6.75%.
In terms of relative pricing, the premium has been stable for years at a level of 150-175 basis points compared to the Czech Republic, according to Avison Young.
“There are cautious signs of stabilization in both Hungary and the broader CEE region, but calling it a sustainable recovery might still be premature,” says Máté Szoboszlay, business development and investment director at Faedra Group. “We are seeing increased activity in certain segments, particularly industrial and residential products, but investor appetite is selective, and many are still waiting for more clarity on interest rates and global risk factors,” he adds.
The Czech Republic remains more liquid and is perceived as less volatile, so the gap is likely to persist in the short term.
“We see significantly higher volumes and a more mature investor base compared to Hungary. However, we can offer yield premiums and longterm strategic potential, especially in logistics and regional hubs. With greater transparency and more highquality products, Hungary has the potential to narrow the gap over time,” Szoboszlay adds.
CEE investment volume in the first half of 2025 was up by 34% on the same period last year, reaching EUR 5.7 bln, according to CBRE.
“This reinforces our forecast that annual CEE investment volume should reach EUR 11.5 bln-12 bln. The outstandingly strong investment momentum of the past two quarters was noticeably broken in the second quarter due to uncertainties surrounding the future of the international trading system. The turbulence has impacted capital flows between regions negatively, but at the same time, it has hardly hindered the activities of domestic and CEE investors,” concludes CBRE’s Borbély.
GARY J. MORRELL
The Budapest Marriott Hotel is now owned by a consortium led by BDPST Group and the Diorit Private Equity Fund, which is buying it from CPI Europe.
PwC Hungary Appoints Partners to Strengthen 3 Business Lines
PwC Hungary has strengthened three of its business lines with the appointment of a trio of digitalization experts, effective from July 1, the Big Four company tells the Budapest Business Journal
Márton Kalavszky has become an assurance partner and will manage an expanding portfolio of clients, with a focus on locally owned, listed groups in the consumer, industrial products, and financial services sectors.
His strategic focus is on transforming audit processes through the automation of repetitive, low-value tasks, integrating AI, and utilizing open-banking solutions to enhance audit efficiency and quality, thereby creating added value for PwC clients across the CEE region.
In addition to his role as a part of the CEE transformation team, he will continue to serve as the CEE assurance technology leader, overseeing audit tools, technologies, and internal AI use.
He will also maintain his oversight of data initiatives within the broader assurance services in Hungary, delivering comprehensive data solutions to clients.
Kalavszky began his professional career in 2006 and joined PwC in 2015. He holds a degree from Budapest Business School, College of Finance and Accountancy.
He is a fellow member of the Association of Chartered Certified Accountants as well as a registered auditor in Hungary.
Péter Lajtai was appointed joint consulting and broader assurance services (BAS) partner in Hungary, taking on cross-functional roles to evolve further business areas that require a robust “one-firm” approach.
His responsibilities include modernizing CFO-related areas through digitalization strategies and capitalizing on data assets and AI with business and technology consultancy. These services aim to enhance data-driven organizational operations via targeted implementation.
As data and AI platform leader, Lajtai will maintain a focus on key local clients, while fostering collaborations within and outside PwC, both locally and internationally, prioritizing large client partnerships.
He joined PwC in 2011 and spent five years in BAS before joining the consulting team nine years ago. He holds a Master’s degree in management and leadership from Corvinus University of Budapest.
Kornél Szeőcs steps into a leadership role in expanding the tax and legal division as a partner. He will oversee the VAT advisory area in Hungary, guiding four teams, while supporting the unified client and market approaches of PwC as the “one-firm” strategist.
Since joining PwC in 2010, Szeőcs has leveraged his innovative approaches to transform VAT advisory services into technologydriven offerings and has been instrumental in developing e-invoicing and e-archiving solutions.
He has worked in Switzerland, Romania, and Serbia, collaborating with local teams to implement CEE
e-invoicing solutions. Kornél holds a law degree from Pázmány Péter Catholic University, and studied for his master’s degree at Jean Moulin Lyon 3 University. He is a certified tax advisor and holds a Master of Laws degree in international and European taxation from Eötvös Loránd University.
Davy van Loon Appointed CEO of Hard Trans Kft.
Hard Trans Kft., a leading logistics and road transport company with more than 25 years of industry expertise, has announced the appointment of Davy van Loon as its CEO, effective from July 1.
He succeeds Andrea Gyetvai , the company’s founder and longstanding CEO, who has been the driving force behind Hard Trans’ success in the European transport and logistics sector. Under Gyetvai’s leadership, the company expanded its operations, developed key industry partnerships, and maintained a customer-first approach that solidified its market position.
Van Loon’s appointment marks the beginning of a new chapter for Hard Trans, as the company embraces digitalization, sustainability, and strategic growth.
The highlights of van Loon’s career include leadership roles in logistics e-commerce, and supply chain optimization, with a focus on efficiency and innovation. He has considerable experience in digital transformation, leveraging technology to enhance fleet management and route planning, as well as international business development, helping companies expand their market reach.
Under the new leadership, Hard Trans will focus on enhancing operational efficiency through advanced logistics technologies, including AI-driven route optimization and real-time tracking.
The company is also looking to expand service offerings to meet evolving industry demands, including green logistics solutions. Another key goal will be strengthening partnerships with clients and suppliers across Hungary, Europe, and Asia.
“I am honored to take on the role of CEO at Hard Trans Kft. and build upon the incredible foundation laid by Andrea Gyetvai,” says Davy van Loon. “The logistics industry is evolving rapidly, and we are committed to staying at the forefront by embracing innovation while maintaining our core values of reliability and customer satisfaction,” he adds. Gyetvai is confident in the leadership transition. “After more than 25 years of leading Hard Trans Kft., I am proud to pass the torch to Davy. His strategic mindset and industry expertise make him the ideal leader to guide the company into the future.”
Gergely Ujvári Appointed COO at Work Force
Gergely Ujvári was appointed the new chief operating officer at Work Force to enhance day-to-day operational efficiency and help shape the company’s long-term strategic vision.
With a career spanning more than 17 years, Ujvári has gained extensive experience across the full spectrum of the HR profession. He has worked as a recruitment consultant, served as a national operations director, and held HR leadership roles across various industries.
He has previously held key positions at leading companies, including Trenkwalder, BT Group, Adecco, Belfry Group, and Aspect Energy, on both the service provider and client sides. Between 2021 and 2023, he led Adecco’s Hungarian operations, where he was responsible for managing and developing complex HR service systems.
“The key to business success lies in people,” he says. He is developing an operational model that encourages responsible decision-making among colleagues while maximizing client experience through continuous process and technology improvements. As a leader, he says he believes in inspiring management that empowers independent work across the team.
Ujvári earned his degree in economics with a specialization in human resource management from Szent István University, which laid the foundation for his people-focused and organizational development approach.
Márton Kalavszky
Péter Lajtai
Kornél Szeőcs
Davy van Loon
Gergely Ujvári
2 Business
Taking a Flexible Approach to Market and Portfolio
It has been a busy couple of years for CPI Property Group, marked by the acquisitions of Immofinanz AG and S Immo AG. That momentum has shown little sign of slowing with the big-ticket sale of the Budapest Marriott Hotel this summer, as CPI Hungary country manager Mátyás Gereben tells the Budapest Business Journal.
downtown hotels on Mérleg utca that are adjacent to one another and the Four Seasons. The 54-room Mamaison Hotel Chain Bridge Budapest reopened on July 1; the 96-room Mamaison Vibe Hotel Downtown Budapest is due to open in December.
Strategic Positioning
At first glance, that sale might seem surprising. As Gereben acknowledges, the hotel sector has produced a “fantastic performance” post-COVID and remains a popular investment choice. However, in the case of the Budapest Marriott and its sister hotel in Vienna, there are strong mitigating factors that make this the ideal time for CPI to sell.
“Agreements like the one with Marriott are becoming increasingly management-intensive and costly,” says Gereben. “These are long-term contracts with strict provisions on owners’ income and the funds that must be invested back into the property. And while the hotel enjoys one of the best locations in Budapest, we should not forget that the building itself is 60 years old,” the country manager notes.
After multiple rounds of the tendering process, a buyer had been identified by the end of March, and the transaction is expected to be closed by the end of September.
No one should think that the disposal of the Marriott Hotel indicates a desire to move out of the hospitality sector by CPI, however. On the contrary, the firm is refurbishing two four-star superior
“We still believe that good quality hotel assets in good locations have an added value to the portfolio. Mamaison Chain Bridge opened July 1; in the past two months, the hotel has been running at 85%-plus occupancy.”
Nor are the hotels the only new developments on CPI Hungary’s books. On the day of our interview, the plot for a new Stop Shop retail park in Salgótarján, Nógrád County, in northeast Hungary, was handed over to the general contractor.
“It’s approximately 8,000 sqm, and we have already achieved 100% prelease agreements for the total GLA. This shows that there are still regions and cities where, if you develop quality products like Stop Shop, there is room for improving the portfolio and developing retail,” Gereben says.
“Tenants are keen to expand in such locations; even if the average purchasing power is declining in Hungary, there are still opportunities. Based on the success of pre-leasing this location, we are considering further Stop Shop developments. We have other plots in Hungary with potential, and are exploring whether, in the near future, it’s worth expanding there.”
There are also decisions to be made in the office sector, which is currently under pressure. Compounding the reduced interest from the international market is the knowledge that all government organizations and related agencies must move into state-owned properties by 2027. That means an additional 500,000 sqm of domestic tenant need will be withdrawn from the commercial office real estate market.
CPI has examined all its office locations, assessing their strategic positioning, both geographically and from a business perspective. A number have been identified that might have the potential for a change of function to residential or hotel use.
A second option is better utilization of the vacant office space. With business in general much more volatile than it was five years ago, companies need greater flexibility. The average deal size has decreased from more than 1,000 sqm to nearly 500 sqm, indicating that companies are reluctant to commit to larger spaces.
“We had to reconsider how we’re able to provide flexible working space for companies, where they don’t have to commit themselves to a longer period, but can expand or give back according to their needs,” Gereben says.
The answer is a product range where office spaces of varying sizes are connected to one common area, fitted out by CPI at its expense.
“We’re taking a bigger floor plate and creating four, five or six units, dependent on the characteristics of the space, which are connected to a primequality common area with meeting rooms, break-out rooms, kitchen and collaboration spaces,” Gereben explains. The concept is similar to a co-working space, but on a premises basis rather than per table or room.
Great Potential
“In this way, the tenant doesn’t have to create that common space within their own premises, because it’s given; they only have to place their workstations in their area. We see great potential and have already seen success with our refurbished offices rented out to companies. The terms and conditions are not so rigid, so you can rent it for a year or even for six months and then move on if required. Usually, whoever rents out these spaces wants to stay longer, but the opportunity is there,” Gereben notes.
At the same time, CPI has been pioneering its CPI Club, creating a community network between its various clients where they offer one another preferential discounted services. It also provides the opportunity for tenant employees from one building to use a meeting room at another if it is more convenient.
CPI had hoped it might reach 2,500 registered members by the end of this year. Speaking at the end of August, the total had already reached 3,200.
“It seems that this whole club or loyalty program concept is working and popular with our tenants,” Gereben says. For more detail on the concept, see “Pioneering a Fresh Approach to how Real Estate is Used” in the Sep. 6, 2024, issue of the BBJ
The third option is disposal. CPI doubled its portfolio size in 2022 with the acquisition of Immofinanz and S Immo. A thorough review of the assets identified those that were most management-intensive, had long-term vacancies, or required substantial capex.
“We assessed all these factors and identified four office buildings to place on the market. Two have already been sold, one at the end of 2024 and the other this summer, while the remaining two are attracting significant interest. I am confident we will be able to sell them as well.”
Gereben says CPI Hungary is a prime example of a long-term real estate investor and operator that recognized in time the need to respond to change and develop its services with an entirely new approach, reshaping both its business operations and the way it builds relationships with tenants.
ROBIN MARSHALL
Mátyás Gereben
Hungarian Team Plays key Role in Global Rollout of Citi’s GenAI Tools
AI Accelerators from Citi Hungary are supporting the bank’s global generative Artificial Intelligence (GenAI) adoption strategy, putting AI tools in the hands of colleagues across the world to boost productivity, the Hungarian branch of the business tells the Budapest Business Journal
Adding to its pivotal role in the global Citi network, Citi Hungary is now home to a dynamic team of AI Accelerators. The bank says these volunteer ambassadors are crucial in facilitating in-country tool adoption and are driving on-the-ground change. Since July of this year, the Hungary AI Accelerator team has been sharing its expertise to support adoption across 18 countries, including the Central European cluster (Bulgaria, the Czech Republic, Romania, and Slovakia). Hungary was among the first 11 countries globally to receive Citi’s new GenAI tools in December 2024.
The local franchise has successfully adopted the latest tools to empower its more than 3,000 employees across its banking operations and Citi Solutions Center in Budapest.
“Our journey with AI is a testament to Citi’s unwavering commitment to innovation. Using these new tools signifies a fundamental shift in how we empower our colleagues, streamline operations, and reinforce Citi’s position as a leading digital bank,” says Károly Kodaj, head of Citi Solutions Center Budapest.
Approximately 156,000 Citi colleagues across 51 countries currently have access to the advanced tools, with continued expansion planned throughout the year.
• Citi Stylus is a productivity tool providing immediate insights from documents. It offers summarization, comparison, and intelligent question answering for quick information extraction and informed decisions.
Colliers: Signs of Recovery in Commercial Real Estate After Years of Decline
Hungary’s commercial real estate market is showing signs of stabilizing after several years of sharp declines, though challenges remain across investment, office, industrial and retail segments, according to property consultancy Colliers.
BENCE GAÁL
At its midyear press briefing, Colliers’ senior experts (Kristóf Tóth, associate director and head of research; Balázs Zelles-Görgey, director and head of capital markets; Anita Csörgő, director and head of retail; Miklós Ecsődi, director and head of occupier services; and Tamás Beck, director and head of industrial) reviewed economic conditions and the latest performance trends across sectors.
Tóth said Hungary’s economy is on a weaker-than-expected growth path, with GDP forecast to expand by only 0.5% to 0.9% in 2025.
“The labor market remains tight, but due to slower growth, the unemployment
Hungary Real Estate Investment Volume (2014-H1 2025)
rate could increase further,” he said, noting the rate had already reached 4.3%in June. Nominal wage growth has also slowed, averaging 9% in the first five months of the year.
Inflation continues to pose difficulties. In June, the Harmonized Index of Consumer Prices inflation rates were 4.6%
in Hungary and Slovakia, 5.8% in Romania, and between 2% and 3% in other regional markets. Meanwhile, eurozone inflation is projected at 2% this year and 1.6% in 2026.
On the investment side, ZellesGörgey said activity has rebounded from the trough of 2024, when transaction
• Citi Stylus Workspaces is the next generation of the Citi Stylus, leveraging conversational AI to streamline tasks. It assists in drafting emails, creating speaker notes, summarizing documents, and developing Q&A materials, simplifying complex work and enhancing productivity.
• Citi Assist is a desktop assistant helping colleagues navigate Citi’s policies and procedures. Currently, it searches Citi documents, with plans to expand its content, ensuring quick access to critical information, compliance, and risk minimization.
About Citi Hungary
Citi has been operating in Hungary since 1985, offering a unique global banking experience that provides a wide range of products and services to large local corporations, SMEs, multinational clients, financial institutions, and the public sector. It also operates the Citi Solutions Center Budapest, established in 2005, providing diverse services in the fields of technology, operations, finance, and risk and control for Citi entities worldwide.
Management acquired two HelloParks warehouses totaling 84,000 sqm in Páty, in what Colliers called Hungary’s largest-ever logistics transaction.
Csörgő said retail performance is closely tied to wage growth and tourism. Real wages rose nearly 4% in the first five months, but retail sales volumes increased only 2.6%. Apparel and footwear underperformed, while health, beauty and e-commerce were the fastest-growing segments. Tourism gave a significant boost, with international guest nights up 7.4% year over year in the first half.
volumes fell to EUR 400 million, compared with pre-pandemic peaks of nearly EUR 2 billion.
“In the first half of 2025, volumes already reached EUR 450 mln, surpassing last year’s total,” he said. Full-year volumes could reach EUR 700 mln-800 mln, he added, though geopolitical risks and Hungary’s 2026 parliamentary elections may temper investor sentiment.
International Investors
Domestic buyers account for around 80% of activity as many Western players remain sidelined; however, recent deals involving German investors signal renewed interest. The logistics segment has been a standout: Erste Asset
High Street demand in central Budapest has strengthened, particularly along Váci utca and Fashion Street, where vacancy rates are near zero. Prime retail rents there have risen about 15% since early 2024 to EUR 160 per sqm per month. Retail parks also remain in high demand from discount chains and grocery retailers.
The office market, however, continues to struggle with high vacancy rates. Ecsődi said Budapest’s vacancy rate is now 12.8%, the highest in the region, following the delivery of 700,000 sqm of new space in recent years.
“The high vacancy rate is mainly supplydriven,” he said. “With supply pressure easing, we expect gradually healthier trends and declining vacancy ahead.”
In industrial property, Beck said the sector has shifted from years of undersupply to oversupply. Budapest’s industrial vacancy jumped to 13.4% in the first half, up from 7.9% at the end of 2024, while net absorption turned negative. Developers remain active but are adjusting strategies as demand slows.
Source: Colliers
Károly Kodaj
News Company
4iG Finalizes Acquisition of PR-Telecom
Listed ICT firm 4iG has completed the acquisition of a 100% stake in regional telecommunications operator PR-Telecom through its subsidiary 4iG Telecommunication Holding. According to an announcement on the Budapest Stock Exchange website, the deal, originally signed on July 4, 2024, was closed on Aug. 29, making 4iG Telco Holding the sole shareholder of the Hungarianowned company. PR-Telecom operates its own infrastructure, offering television, internet, and fixed voice services across 10 counties and nearly 200 towns. The acquisition adds 250,000 households to 4iG’s network, 52,000 new subscribers, and 3,400 kilometers of fixed-line infrastructure. PR-Telecom customers will experience no service disruptions following the change in ownership.
Egis Partners With BME to Support Practical Training, Talent Development
Hungarian pharmaceutical company Egis has signed a partnership agreement with the Faculty of Mechanical Engineering at the Budapest University of Technology and Economics (BME), the French-owned firm said in a press release on Sep. 1. The collaboration aims to enhance practical training, build labor market-relevant competencies, nurture talent, and promote careers in the pharmaceutical industry among graduates with technical degrees.
MOL Group Exploring Geothermal Energy at Danube Refinery
Hungarian oil and gas company MOL is conducting seismic surveys at its Danube refinery in Százhalombatta (30km southwest of Budapest by road), with the aim of using geothermal energy at the site. In a statement issued on Aug. 29, MOL said the survey results would be ready in about six months, after which feasibility studies could be conducted. If sufficient quantities of thermal water at the right temperature can be identified at the appropriate location and depth, it could significantly support the refinery’s energy needs. MOL added that the project was a first for the region, and followed the establishment of a solar park and green hydrogen plant at the refinery.
Jalsovszky and KNP Law Firms Merge
Business law firms Jalsovszky and KNP Law will merge operations under the Jalsovszky brand, the firm announced in a press release. The integration will allow clients to access
a broader range of services, combining Jalsovszky’s expertise in tax advisory, M&A, and banking with KNP Law’s specialization in pharmaceutical law and data protection. The merger will make Jalsovszky one of the country’s largest and most comprehensive law firms in terms of professional coverage. “The move is an integral part of our strategy to continuously expand the range of services we provide to our clients: in addition to our labor law, copyright law and economic criminal law practice launched in the past year, we can now also act in pharmaceutical law and data protection issues. During the integration, we will also be expanding with excellent colleagues who represent significant value to us both professionally and personally,” said Pál Jalsovszky, head of Jalsovszky Law Office.
Mészáros’s Talentis Agro to Acquire Gyulai Agrár
Talentis Agro Zrt. , owned by billionaire investor and key government ally Lőrinc Mészáros, will take sole control of Gyulai Agrár Zrt. , based on a merger notification filed with the Hungarian Competition Authority (GVH) on Aug. 6 and published on Aug. 21, Menedzsment Fórum (the online magazine Management Forum) reported. Gyulai Agrár, established through the transformation of a former agricultural production cooperative, leases more
than 1,500 hectares of land for farming operations. The company focuses primarily on cattle breeding and raw cow’s milk production, with secondary activities in arable crop cultivation. Its livestock includes approximately 1,800 Holstein-Friesian cattle, of which 800 are dairy cows that produce nearly eight million liters of milk annually.
Popeyes to Open 1st Hungarian Location in Budapest This Fall
U.S. fast-food chain Popeyes will open its first restaurant in Hungary this fall in Budapest, the company announced on Sep. 1. While the exact location has yet to be revealed, the launch follows a broader European expansion, with Popeyes already present in the Czech Republic, France, Italy, Romania, Spain, Switzerland, and the United Kingdom. The domestic rollout is being handled by Fusion Group Zrt., which was founded in 1990 and also operates the Burger King franchise in Hungary.
Waberer’s logistics division and the MVM Group have entered a new three-year strategic cooperation agreement to develop a unified and efficient logistics and transportation system in the energy sector, aimed at enhancing MVM’s supply security and operational efficiency, according to a press release. Waberer’s, a provider of complex logistics services, won MVM’s tender launched in December 2024 and signed the cooperation framework agreement on July 3.
The project will roll out in three phases, beginning with the assessment of member company operations and followed by chain optimization. Under the agreement, Waberer’s Logistics will provide end-to-end logistics services, including transport and storage of raw materials, iron structures, cable drums, scaffolding systems, building materials, tools, solar panels, and various production and maintenance materials.
Wizz Air in Talks With Pratt & Whitney to Expedite Engine Servicing
Wizz Air is negotiating with the RTX-owned engine manufacturer Pratt & Whitney to accelerate maintenance on its grounded engines, the low-cost carrier’s CEO József Váradi told international news wire Reuters on Sep. 1. A defect in the powder metal used in high-pressure turbines and compressor discs has affected specific Pratt & Whitney engines, significantly disrupting airlines, especially those, like Wizz Air, operating Airbus A320neofamily aircraft. If the talks result in an agreement, it could help the airline return more aircraft to service sooner, bolster investor confidence, and support its struggling share price. Wizz’s fullAirbus fleet has been particularly impacted, with industry-wide supply chain delays further compounding maintenance challenges. The company’s exit from the Abu Dhabi market earlier this summer has also contributed to recent stabilization. Wizz shares have remained among the weakest performers in the European airline sector over the past year, primarily due to the ongoing groundings.
E.ON Unveils HUF 785 mln Battery Storage Facility Near Budapest
Utilities company E.ON inaugurated a HUF 785 million battery storage facility in Soroksár (in Budapest’s District XXIII) on Aug. 28, according to a press release. Zsolt Jamniczky, deputy CEO of E.ON Hungary, said 45% of the investment was financed through the European Union’s Recovery and Resilience Facility. State Secretary for Energy Attila Steiner emphasized the growing importance of storage solutions and grid modernization, as solar now accounts for a quarter of Hungary’s energy mix. The 16 outdoor battery cabinets have a storage capacity of 5.5 MWh with 2.5 MW output.
Zsolt
Jamniczky, deputy CEO of E.ON Hungária Zrt., at the handover ceremony for E.On Hungária Zrt.’s new energy storage facilities in Soroksár.
Photo by Szilárd Koszticsák / MTI
3 Special Report
Green Business
Market Talk: Authorities and Banks Taking Sustainability Mainstream
ESG principles and practices are seen as an intrinsic element and a central motive and requirement for business and technical practices throughout the lifespan of a given real estate development from formulation and design, to site identification, financing, construction, and management through to redevelopment or exit strategy. The Budapest Business Journal spoke to leading industry actors about the growing influence of sustainability in all aspects of real estate and related industries.
Banks are increasingly influenced by regulatory frameworks, which in turn exert market pressure on developers and investors. EU taxonomy is gaining traction among various stakeholders, which is a promising development. While it may not be as stringent or comprehensive in the real estate sector as some ESG-related certifications, it is important to recognize that it addresses a broad range of economic activities. Both incentives and mandatory regulations are effective tools for steering the market in the right direction. However, they should prioritize impactful and meaningful measures, rather than getting lost in detail or
focusing on aspects with minimal relevance to key ESG objectives.
From the market perspective, tenants already play a significant role in driving ESG expectations for developers and investors. Ideally, individuals should also contribute to this transformation through their choices and behaviors.
NORBERT SZIRCSÁK , Director, Head of ESG Advisory Services, Colliers
The objectivity and independence of ESG assessments are a critical issue, particularly as sustainability performance becomes increasingly linked to financial value, regulatory compliance, and market competitiveness. In the Hungarian and broader Central European real estate market, this question is particularly relevant due to the relatively small pool of qualified ESG professionals, who often wear multiple hats as consultants, assessors, and certifiers.
It is true that potential conflicts of interest can arise when the same professional or company provides both advisory services and acts as an assessor or verifier. For example, a consultant may support a developer in preparing a building for certification and then be involved, directly or through affiliated teams, in the official assessment process. In such cases, the perception of independence may be compromised, even if formal procedures are followed. However, reputable ESG frameworks, such as BREEAM, LEED, or the EU taxonomy, include built-in mechanisms to preserve objectivity. These often involve multistage verification, third-party auditing, and strict role separation requirements.
Sustainability is a key consideration, especially for tenants with substantial international backing and large corporations, and so, naturally, the type of property in which they operate is also important. In most cases, these companies already have sustainability strategies and targets in place, which their Hungarian subsidiaries must also comply with. These requirements also include items
to be fulfilled in relation to energy consumption and the resulting carbon footprint. Thus, the expectations are already directly reflected in the preliminary negotiations with each potential tenant.
HelloParks considers it a market advantage that we can meet these higher expectations, so we continually improve all our buildings and offer sustainable solutions to existing and new tenants year after year. The biggest innovation in 2025 is that our entire portfolio will be powered by green electricity with a guarantee of origin certification.
ANNA
BENCZE , Head of sustainability, HelloParks
Although Lurdy Ház is not legally required to produce ESG reports, sustainability is embedded as a core strategic pillar in our operations. Market forces, particularly the increasingly conscious sustainability demands of our tenants and visitors, are complemented by regulatory trends that inspire us to voluntarily and proactively embrace ESG principles. This dual dynamic drives innovation, strengthens our competitive edge, and fosters long-term tenant loyalty.
We believe that ESG compliance requires a holistic sustainability mindset, integrating energy-efficient technical solutions, comprehensive waste management, expanding green spaces, barrier-free accessibility, and sustainable transportation connections. In daily operations, we prioritize optimizing energy consumption, delivering high-quality, eco-conscious tenant services, and addressing both social responsibility and economic sustainability. Our project and facility management teams continuously track and improve energy efficiency, maintenance processes, and financial
transparency. This ensures that sustainability goals translate into tangible, measurable business value.
CSABA SZILÁGYI , Managing director, Lurdy-Ház Shopping and Office Center Kft.
In the Hungarian real estate and construction market, both regulatory and market pressures are compelling developers and investors to prioritize ESG-conscious business practices. In line with EU directives, the consistent and continuous raising of energy requirements has now made solutions that were considered special five to eight years ago standard practice, such as the use of GSHP [ground source heat pump] systems. Regulatory frameworks, particularly the EU taxonomy, play a decisive role in shaping investment and development strategies. The gradual integration of ESG aspects into governmental urban development goals and permitting procedures are further reinforcing these trends.
However, I see market forces, especially financing, as a much more important factor. In economic terms, this essentially means internalizing environmental factors, which is a decades-old solution to environmental problems. Additionally, rising energy costs have reinforced the economic appeal of energy-efficient, resource-conscious design, benefitting developers, investors, and occupiers alike.
NÁNDOR KOVÁCS , Strategy director, Óbuda Group
For the WELL accreditation system, the most impactful improvements would likely focus on making it more accessible to diverse project types while maintaining its evidencebased approach to promoting human health through design.
WELL currently skews toward highend commercial projects. Developing streamlined certification tracks for smaller buildings, residential projects, and retrofit applications would broaden its impact. This includes creating cost-effective monitoring
GARY J. MORRELL
Norbert Szircsák
Zsombor Barta
Anna Bencze
Csaba Szilágyi
Nándor Kovács
Regina Kurucz
solutions and simplified documentation processes while maintaining rigor.
The good news is that these developments have already begun; WELL Residence and WELL Co-working rating were launched in 2024, and new updates are coming soon. Moving beyond point-in-time assessments to continuous monitoring through IoT sensors and building management systems would provide ongoing feedback loops. This could enable dynamic certification levels that respond to actual performance rather than just design intent.
The WELL Building Standard has pioneered the integration of human health and well-being into the built environment, yet its current framework only begins to address the needs of neurodivergent individuals. By expanding WELL’s evidence-based framework to address neurodivergent needs explicitly, we can create environments that not only accommodate but actively support the well-being and productivity of all users.
REGINA
KURUCZ , Managing director, Rewell Consulting
Market demands driven by occupiers, investors, and regulatory frameworks such as the EU taxonomy, SFDR [Sustainable Finance Disclosure Regulation], and the Corporate Sustainability Reporting Directive [CSRD] have become particularly influential. Investors and tenants are increasingly prioritizing sustainability credentials and transparency in performance. These measures effectively
encourage developers not only to comply but to proactively integrate ESG criteria into their core business strategy, turning sustainability into a competitive advantage rather than simply a compliance requirement. We are clearly approaching a convergence point. ESG has evolved from a “nice-to-have” to a strategic necessity. While some companies still focus on meeting only the basic requirements, others, guided by their values and target audiences, go far beyond compliance to create a meaningful, lasting impact. At Skanska, embedding sustainability is fundamental to creating long-term value, environmentally, socially, and financially. Today, responsible business practice and financial success increasingly go hand in hand.
DÁVID HOFFER , Head of property management, Skanska Commercial Property Development Europe
Although ESG has only recently become a standard approach in the real estate sector, it has long been a core element of our development strategy at Wing. Our design
philosophy emphasizes the flexible and efficient use of spaces, as well as the conscious selection of sustainable materials, such as recycled or low-emission options.
In property and facility management, digital tools such as advanced BMS [building management systems] enable optimized energy consumption and real-time performance monitoring, while eco-friendly operations and a zerowaste policy further support sustainability. Amenities such as bicycle storage, changing rooms, electric vehicle chargers, parcel lockers, and water fountains promote healthy, sustainable lifestyles.
Finally, location remains a significant factor. Proximity to public transport and urban mobility hubs is key to reducing the carbon footprint associated with commuting. At Wing, these principles are embodied in developments such as the mixed-use Liberty and our latest boutique office project, Liget Center Vitrum. Both combine sustainable design, smart building systems, prime locations, and a wide range of amenities.
ERNŐ TAKÁCS , Deputy CEO of Hotels and Commercial Properties, Wing
Regulatory and market forces remain key, but the focus has shifted beyond ESG compliance to resilience and operational excellence. Regulatory frameworks like the EU taxonomy and SFDR [Sustainable Finance Disclosure Regulation] still matter, but a major driver now is financial institutions recalibrating their risk exposure. The European Central Bank, for example, has explicitly pushed lenders to reduce their commercial real estate portfolios, reflecting concerns about asset vulnerability in a changing market. This is prompting a revaluation of what constitutes a highquality, future-ready asset.
We are beyond ESG as a standalone pressure. The convergence is real, but the endgame is resilience: financial, environmental, and operational. Business leaders increasingly see ESG metrics as tools to build and demonstrate long-term viability. As regulators and investors focus on risk-adjusted performance, the pressures once seen as “ESG” are now simply best business practice.
HUBERT ABT, CEO and founder, Workcloud24
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Dávid Hoffer
Ernő Takács
Hubert Abt
Third-party Accreditation Crucial for new Projects
and Increasingly for Existing
The increasingly widespread use of thirdparty sustainability accreditation systems in commercial real estate reflects the need for those involved to provide independent and transparent ESGrelated data and information for the benefit of state and international organizations, tenants and end users, financiers, investors and other stakeholders.
BREEAM is clearly the most popular third-party accreditation option in Hungary and the broader region, followed by LEED. Regarding interiors and accreditation relating to health and wellbeing, WELL, Access4You and others are also increasingly popular options.
Buildings
Greenbors Consulting has traced 26 BREEAM certifications in Hungary for the first quarter of the year, while 88
were recorded across the whole of 2024.
Far more were recorded in the BREEAM “In-Use” category compared to “New Construction.” These statistics include commercial office, retail, and logistics buildings, but no residential projects. Theoretically, residential buildings can also be certified, but there are few current examples.
“It’s unlikely that all offices will be required to be accredited, but there is a growing trend toward stricter sustainability regulations and market demand for green buildings,” says Zsombor Barta, founding partner of Greenbors Consulting.
free of charge for “In-Use” certifications, or with a modest fee in the case of “New Construction.” This makes the process far more accessible and efficient for regional stakeholders. Another major strength lies in BREEAM’s well-established framework for certifying existing buildings through its “In-Use” category.
LEED is primarily used by stakeholders with strong North American ties or by companies that have a global policy to employ the system. Its use in Central Europe is still relatively limited compared to BREEAM, although there are notable exceptions; Skanska, for example, uses LEED for all its developments across Europe.
Developers and owners face distinct challenges when opting for “New Construction” versus “In-Use” certifications.
other stakeholders. At the same time, the Hungarian commercial real estate market is currently seeing relatively few new construction projects. This naturally shifts the emphasis toward maximizing the value and sustainability of existing buildings, further contributing to the popularity of the BREEAM ‘In-Use’ certification,” Barta adds.
Anna Bencze, head of sustainability at HelloParks, argues that it is unimaginable for a new industrial or logistics building to be on the rental market without such certifications.
“This is the case today with ESG, with demand continuing to grow and requirements becoming increasingly specific and stringent. On the other hand, the regulatory environment is also addressing the issue in a targeted manner,” she says.
“As things stand, from 2030 onwards, only so-called Zero Emission Buildings will be allowed to be built in the EU, which, among other things, excludes the use of fossil fuels on site. In my opinion, the regulatory environment is increasingly moving in the right direction, but at a slow pace,” Bencze adds.
As specialized “human-centric” accreditation systems have emerged, Cushman & Wakefield research indicates that nearly 50%
of Budapest’s office market is already Access4you certified, with the Váci út Corridor leading at 64%.
Accessibility also correlates with building age; post-2020 developments tend to be the most inclusive, showing that such design is becoming an industry norm. CBRE has traced 89 office Access4you accreditations, 65 from retail and six hotels as of Q1 2025.
“ESG certification schemes maintain rigorous standards to ensure the objectivity and independence of sustainability assessments,” comments Nándor Kovács, strategy director at Óbuda Group.
“For example, BREEAM requires a clear separation between the assessor and the design and consulting teams, with certification processes subject to strict methodological rules and thirdparty verification,” he notes.
“All schemes rely on an auditable trail of evidence and apply consistent quality management practices. The early engagement of consultants leads to better performance outcomes, allowing sustainability strategies to be embedded from the earliest stages of design and development,” Kovács adds.
The number of BREEAM accreditations has increased in recent years. The sustainability advisory
“Over time, accreditation may become more common or even mandatory in certain regions or sectors as governments and organizations push for improved environmental performance and transparency,” he believes.
CBRE has recorded 93 BREEAMcertified office projects, 80 industrial and logistics developments, 27 retail and seven hotel accreditations as of the first quarter of the year, reflecting the move beyond the office sector.
BREEAM Leads the Way
BREEAM has become the preferred green building certification scheme in Hungary and across Central Europe for several compelling reasons, according to Barta. First and foremost, its flexibility and adaptability to local market conditions set it apart.
Unlike other international systems, BREEAM allows documentation and evidence to be submitted in local languages,
“For ‘New Construction,’ the main hurdles include upfront design and planning to meet strict sustainability standards, integrating new technologies, managing higher initial costs, and coordinating multiple stakeholders early on,” Barta explains.
“In contrast, ‘In-Use’ certifications focus on existing buildings, where challenges revolve around accurately measuring and improving ongoing performance, retrofitting newer systems, engaging occupants, and balancing operational costs with sustainability goals,” he continues.
“Overall, ‘New Construction’ requires proactive planning and investment, while ‘In-Use’ demands continuous management and adaptation,” Barta says.
The higher number of BREEAM “In-Use” certifications compared to “New Construction” across the Central European region can be attributed to several factors.
“The ‘In-Use’ scheme is significantly more flexible and advantageous than similar offerings from other certification bodies, making it an attractive option for asset and portfolio owners,” Barta argues.
Repositing and Upgrading
A key driver behind this trend is the strategic repositioning and upgrading of existing commercial properties. Owners are increasingly focusing on future-proofing their assets (whether through renovations, functional changes, or operational improvements) to meet evolving market expectations.
“This helps make properties more appealing to tenants, investors, and
“A new trend has begun; alongside larger, more time-consuming and expensive building certifications, smaller ratings have emerged that make sustainable ratings accessible to a wider audience,” explains Regina Kurucz, managing director of Rewell Consulting.
“These smaller ratings focus on a specific aspect of a building, such as the WELL Health-Safety Rating for healthy building operations, the WELL Equity Rating for equal opportunities, Access4you for accessible and barrier-free solutions, ActiveScore for active transportation and amenities, and ModeScore for connectivity between buildings,” she notes.
According to international benchmarks, green buildings have on average 2-10% higher investment costs, but this green premium can pay off in as little as 3-5 years due to 25-50% lower energy and operational expenses. Sustainable buildings depreciate more slowly, providing more stable long-term returns, concludes Barta.
GARY J. MORRELL
Skanska uses the LEED third-party sustainability certification system in all its projects, regardless of location. Pictured are the H2Offices in Budapest.
A Holistic Approach to Spotting and Unlocking Sustainability Opportunities
Head of sustainability
Barnabás Herényi tells the Budapest Business Journal how Óbuda Group became a sustainability pioneer, how it embeds ESG principles in all its processes, how it seeks to bring the whole sector with it, and takes us through his career path from university student to department head.
BBJ: Your early career background was in architecture and graphic design. How and why did you make the switch to sustainability?
Barnabás Herényi: I aimed to understand as many aspects of architectural expertise as possible, so alongside my studies, I sought short but meaningful experiences in architectural design, construction, and graphic design. During my university years, I studied in Finland, where I took sustainability courses in urban planning and the green transition, subjects that were not then widely available in Hungary. Experiencing such an approach had a profound impact, ultimately leading me to this field.
Sustainability felt like the future of architecture and construction. Later, exposure to the Óbuda Group through a university lecture by a future colleague and personal connections led me to join the company, where I could embed sustainability across various projects.
BBJ: Óbuda Group has been a pioneer in the sustainability field. How and why did this come about?
BH: We recognized early on that sustainability would become essential for competitiveness, and Óbuda Group was among the first in Hungary to deliver international green building certifications. More than a decade ago, we established a dedicated in-house sustainability division, and today, we are considered one of the leading consultants in this field. We were also able to convey this mindset to our clients, encouraging them to understand that truly high-quality, future-proof buildings must be designed to the most advanced sustainability standards.
Today, sustainability has become a guiding approach in all of our activities. While initially we focused on providing external consultancy, our mission now is to ensure that every Óbuda project, whether we act as project managers, designers, or, in particular, carry out a project on an EPCM (Engineering Procurement Construction Management) basis, is sustainable. With our in-house expertise, we can drive this transition and offer clients a comprehensive, fully sustainable package. Our ambition goes beyond compliance: we aim to set new benchmarks for both the Hungarian and regional markets.
BBJ: Today, many market players talk up their green credentials. What makes Óbuda stand out from the crowd?
BH: We have been actively shaping the green building landscape in Hungary for more than a decade, with a proven track record of over 80 projects certified under BREEAM, LEED, and WELL across a wide range of sectors, from cultural institutions like the House of Music Hungary and the Museum of Ethnography and Visitor Center, to office complexes such as Agora Budapest, the Magyar Telekom Headquarters, HillSide Offices, buildings in Graphisoft Park and also Budapest Harbor Logistics Park. Being consistent trendsetters in the field, we achieved several firsts in Hungary: the first certified refurbishment project (House of the Hungarian Millennium – Olof Palme House), the first urban-scale certifications for Agora and Liget Budapest, and the first to achieve BREEAM ratings at “Very Good,” “Excellent,” and even “Outstanding” levels in Hungary. For the flagship
MOL Campus project, we delivered dual certifications (LEED “Platinum” and BREEAM “Excellent”), setting a new benchmark in the region. What truly differentiates us, though, is our integrated and multidisciplinary approach. Sustainability is not treated as a separate discipline but embedded into every phase of our work, from concept design to delivery, with early involvement. Close internal dialogue between our project management and design divisions ensures that architectural, engineering, and ESG goals are fully aligned, supported by a strong in-house knowledge base. This holistic approach enables us to identify and unlock sustainability opportunities throughout the entire process.
Our commitment also goes beyond individual projects: we actively contribute to shaping industry standards as members of the Hungary Green Building Council and as part of the newly established Sustainability Section of the National Federation of Hungarian Building Contractors (Évosz).
BBJ: How do you seek to embed sustainability throughout all your processes?
BH: Early involvement is always the key; sustainability goals should be defined from the initial stage, followed by concept design and planning. Each project stakeholder contributes deep expertise in their own field, while one of the most essential roles of the sustainability consultant is to ensure that the right questions are asked, the information and knowledge are aligned, and synergies are created, resulting in combined outcomes that exceed individual inputs.
Our processes and working methods are grounded in international standards and professional consensus on sustainable construction, providing a solid and credible framework. Continuous training and knowledgesharing keep expertise current, while measurable KPIs related to a development project, such as energy and water consumption reduction, recycled waste volumes, and embodied carbon reduction, are systematically applied. Progress is tracked through ongoing monitoring and reporting, ensuring sustainability objectives are consistently achieved.
BBJ: It is good that firms take individual actions, but the real estate industry is a major producer (40%) of CO2 emissions. What is Óbuda doing to promote an industry-wide approach?
BH: Landmark projects we have worked on, such as the Liget Budapest portfolio, set ambitious sustainability goals that had never been attempted in Hungary, serving as a model and influencing the entire industry. When the market sees the results of pioneering projects, clients and developers gain the confidence to adopt greener solutions themselves. We continually raise the bar, demonstrating that even the previous “best practice” can be improved with a commitment from the client’s side. Our goal is to move sustainability from being a project feature to an industry-wide expectation and standard. Achieving this requires collaboration across the entire construction value chain and the adoption of a life-cycle perspective for the built environment. This is precisely the purpose of the Sustainability Section of Évosz, which we co-founded. Our recent joint initiative, the Green Minimum, seeks to make environmental considerations a baseline requirement for public and state development projects.
BBJ: What will be the next big advance in sustainability in your industry?
BH: The focus is shifting from energy efficiency to complete life-cycle carbon reduction, including embodied and operational emissions. Circular economy principles (material reuse and design for disassembly) will become standard, while digitalization and big data will enable smarter, real-time sustainability management solutions and create synergies. There will also be greater attention to occupant health and wellbeing through WELL and accessibility frameworks, alongside improved integration of renewable energy and its storage options. Stronger EU and national regulations will drive the industry toward climate neutrality.
BBJ: Is there anything else you would like to add?
BH: Sustainability considerations are still perceived as obstacles sometimes. While they can be challenges, if addressed from the very beginning, with proper management, sustainability aspects can be integrated most costeffectively, allowing us to achieve the best and most efficient outcomes.
ROBIN MARSHALL
Barnabás Herényi, head of sustainability at Óbuda Group.
ESG Elements Crucial to Sourcing Finance
Commercial lenders have become increasingly influential in shaping ESG practices in the real estate sector, particularly through the conditions they attach to financing. In the Central European market, banks and institutional investors are responding to both regulatory obligations and evolving risk assessments linked to sustainability, according to the Hungarian Green Building Council.
“This means incorporating sustainability into all areas of activity to make the bank’s entire operation more sustainable. Erste’s goal is for 25% of its corporate loan portfolio to contribute significantly to the environmental objectives of the EU taxonomy by 2026.
Erste now only finances real estate projects that significantly contribute to climate change mitigation,” he adds.
He argues that, in the Central European real estate market, developers and investors face an increasing convergence of market and regulatory pressures that are shaping ESG-related business practices.
On the regulatory side, the most significant driver is the EU’s evolving ESG framework, including the Corporate Sustainability Reporting Directive (CSRD), the EU taxonomy for sustainable activities, and the European Sustainability Reporting Standards (ESRS).
as a compliance obligation or a cost burden, rather than a value-enhancing opportunity. This can be attributed to limited regulatory enforcement, knowledge gaps, or a perceived lack of return on sustainability investments. In these cases, ESG and business pressures are not yet fully aligned, in the view of Barta.
“Lenders are motivated by regulatory compliance, reputational considerations, and portfolio risk management,” says Zsombor Barta, founding partner of Greenbors Consulting, and a former HuGBC president. “Their influence over real estate actors is growing steadily, making them key enablers and gatekeepers of ESG adoption across the built environment in Hungary and the wider region.”
The class “A” RoseVille offices in Budapest, by the Belgium-based CEE regional developer Atenor, has become Hungary’s first commercial property to receive EU Taxonomy certification from an independent verifier, meeting the “climate change mitigation” requirements.
Consequently, the RV Real Estate Investment Fund, managed by Hermes Investment Management, the new owner of the 15,000 sqm office building, successfully acquired a green loan for the property.
“Thanks to the close cooperation between the MNB [National Bank of Hungary] and our organization, a welldefined framework for applying EU taxonomy requirements has emerged. Based on this, the HuGBC can provide independent verification for developers, as in the case of RoseVille,” comments Gábor Szarvas, the current president of the Hungarian Green Building Council.
“Environmental considerations are an integral part of Erste’s strategy and core operations,” says György Salamon, head of real estate financing at Erste Bank Hungary, in offering the lenders’ perspective.
Lenders are under growing pressure from regulators, notably the European Central Bank, which has flagged commercial real estate as a systemic risk and urged banks to limit their exposure.
Increased Scrutiny
“This has translated into tighter lending standards, increased scrutiny of asset resilience, and financial incentives for performance-linked sustainability,” comments Hubert Abt, CEO and founder of Workcloud24. “Their motivations are clear: reduce portfolio risk, ensure borrower robustness, and stay ahead of regulatory scrutiny. It’s less about green labelling and more about futureproofing credit quality,” he says.
Thus, lenders are exerting pressure on developers and investors by linking financing terms to ESG performance. This can take the form of sustainability-linked loans, where interest rates are tied to the borrower’s ESG metrics, or through green loans, which are explicitly earmarked for sustainable assets.
According to international benchmarks, the investment costs of green buildings are, on average, 2-10% higher, but this green premium can pay off in as little as three to five years due to 25-50%
lower energy and operational expenses. Sustainable buildings also depreciate more slowly, providing more stable long-term returns, says Barta.
“These regulations require not only transparency in environmental and social impacts, but also a demonstrable alignment of business strategies with long-term sustainability goals,” Barta explains.
“For developers and investors operating in or financing projects within the EU, compliance is no longer optional; it is becoming a legal and reputational necessity. In Hungary, while enforcement is still evolving, market actors are increasingly aware that alignment with EU rules is essential to access both institutional financing and public procurement opportunities,” he adds.
Improved Ratings
At the same time, financial institutions are increasingly judged by their own ESG performance, both by shareholders and regulators. Offering sustainable finance products improves their own sustainability ratings and helps them align with their institutional commitments to decarbonization.
In many cases, ESG pressures are now being internalized as core business drivers. Energy efficiency, climate resilience, and regulatory compliance have a direct impact on property value, occupancy rates, financing terms, and asset liquidity. For institutional investors and international developers active in the region, ESG is integral to long-term competitiveness and license to operate. However, there are still perceived gaps. In parts of the market, especially among smaller developers or in lowervalue asset segments, ESG is often seen
ESG considerations already play a critical role in shaping investment decisions, particularly for core products where ESG compliance directly influences both transaction viability and financing availability. For institutional investors, lenders, and tenants, adherence to sustainability standards has become a baseline requirement, according to Ferenc Furulyás, managing director of iO Partners Hungary.
“However, in the current environment, marked by a shift toward higher-yielding, value-add opportunities, ESG is often viewed more as a future implementation goal than an immediate prerequisite. In these cases, the feasibility of upgrading assets to meet ESG standards is more relevant than their current certification status. As a result, non-core investors are increasingly assessing ESG potential as part of their value creation strategy, rather than as a starting condition,” he adds.
Investors, developers, and owners are increasingly supported by expert designers, consultants, and now also financial partners, whether it’s about compliance, certification, or financing structures.
Experts agree that the real estate market of the future will gradually split into two categories: sustainable, future-proof properties on the one hand, and so-called “stranded assets,” which will lose value, on the other. Greening existing portfolios will become inevitable, especially for institutional owners. Those real estate players who recognize and adapt to these trends in time will gain a competitive edge, while others may be pushed to the margins by shrinking demand, concludes the HuGBC’s Szarvas.
GARY J. MORRELL
The 45,000 sqm HelloParks Maglód MG3 warehouse was the first industrial property in Hungary to achieve BREEAM’s highest “Outstanding” rating in the “New Construction” category. It has subsequently been sold to investors.
MBH Bank Puts Biodiversity at Core of Sustainable Future Strategy
As part of its “Sustainable Future Bank” program, MBH Bank has elevated biodiversity protection to a strategic priority alongside decarbonization and green financing. Deputy CEO András Puskás tells the Budapest Business Journal that the lender sees safeguarding ecosystems as an environmental and a business imperative, with projects ranging from large-scale forest restoration to species protection.
Bank” program. As one of Hungary’s largest universal banks, serving nearly 2.5 million clients, we see it as our responsibility to lead by example when it comes to protecting nature. In cooperation with the Ministry of Agriculture and Hungary’s 10 national parks, as well as with the Budakeszi Arboretum and Ipoly Forest, we are launching initiatives that support the protection of natural habitats, safeguard endangered species, and raise public awareness. For us, biodiversity is not just an environmental issue, but a strategic priority that aligns with our ESG goals and reinforces MBH Bank’s role as a responsible leader in the Hungarian financial sector.
tracking and conservation measures. We also place a strong emphasis on employee engagement, with hundreds of colleagues participating in activities such as tree planting and trail restoration. Together, these efforts allow MBH Bank to demonstrate not only ecological restoration but also meaningful community involvement –showing the tangible value we can create beyond traditional banking operations.
BBJ: Involving employees and customers in sustainability efforts is highlighted as a key element. What has been the response so far, and how do you plan to engage stakeholders in these initiatives further?
BBJ: The financial sector is increasingly expected to contribute to long-term environmental and social resilience. What unique role do you believe a bank like MBH can play in supporting biodiversity compared with other industries?
AP: As a Hungarian-owned bank, MBH recognizes its responsibility to support the country’s climate goals and to encourage clients to adopt environmentally conscious practices. Unlike sectors focused only on production or services, a bank has a unique ability to influence both capital allocation and societal behavior. By integrating ESG criteria into lending, offering green financial products, and partnering with governmental and civil organizations, MBH Bank can support biodiversity across multiple levels: preserving habitats, funding conservation projects, and encouraging sustainable agricultural practices. This approach shows the distinctive role banks can play in creating positive environmental and social outcomes beyond their traditional financial activities.
BBJ: What are the next milestones or flagship projects within the Biodiversity Program, and how do you see them shaping MBH Bank’s position as a leader in sustainable finance in Hungary?
AP: Our next milestones include long-term projects across all 10 national parks, with strategic plans extending to 2028. Our upcoming initiatives focus on further restoring forest and wetland habitats, expanding employee volunteer programs, and developing methodological indicators to measure the environmental impact of each project.
BBJ: How does the Biodiversity Program fit into MBH Bank’s broader “Sustainable Future Bank” strategy, and why was biodiversity chosen as a key focus area alongside other ESG priorities?
András Puskás: Sustainability challenges, including habitat loss, biodiversity decline and climate change, cannot be ignored by the financial sector. At MBH Bank, we believe that our business activities must be shaped in a way that reflects these challenges. By joining the UN Principles for Responsible Banking and conducting an impact assessment, it became clear to us that preserving biodiversity and healthy ecosystems must be a strategic priority. This is why, alongside decarbonization and the expansion of green financing, biodiversity has become one of the key pillars of our “Sustainable Future
BBJ: Several initiatives under the program, such as forest planting and habitat restoration, go beyond traditional banking activities. How does MBH Bank measure the tangible impact of these projects on the environment and the community?
AP: We monitor the tangible impact of our biodiversity initiatives through environmental and social metrics. Forest restoration projects in the Nyírjesi Parkerdő and Szokolyai Börzsöny have resulted in nearly 57,000 trees planted since 2022. At the Budakeszi Arboretum, our contributions included planting 200 trees and 10,000 bulbs, directly enriching the local ecosystem and supporting greater species diversity. In wildlife-focused projects, such as at Hortobágyi National Park, we track the recovery of the little tern population, which has grown from fewer than 20 pairs to 60–70 pairs, supported by GPS
AP: Over the past two years, employee and customer engagement in MBH Bank’s ESG initiatives has been strong. Our employees have enthusiastically participated in projects such as tree planting in Balassagyarmat and Szokolya, as well as trail restoration in the Bükki National Park, contributing hundreds of volunteer hours to biodiversity efforts. Our bank also supports initiatives like adopting trails so that staff can see the tangible impact of their work. Customers participate through green financial products, ranging from green loans to sustainability-linked services. Looking ahead, we plan to offer more volunteer opportunities and introduce new ways for stakeholders to get involved. We also aim to expand our green product offerings, enabling both employees and customers to play an even more active role in sustainability initiatives while deepening their connection to Hungary’s natural heritage.
“In cooperation with the Ministry of Agriculture and Hungary’s 10 national parks, as well as with the Budakeszi Arboretum and Ipoly Forest, we are launching initiatives that support the protection of natural habitats, safeguard endangered species, and raise public awareness.”
We also plan to continue growing our green loan portfolio and implement science-based targets to achieve verified carbon reduction. In addition, we will put a strong emphasis on irrigation and water management projects, supporting innovative solutions like the solar-powered water replenishment system in Kiskunság National Park, for example, which helps restore drying wetlands and strengthens ecosystem resilience.
BENCE GAÁL
András Puskás, deputy CEO, MBH Bank.
Precise, Traceable Data Essential for Credible Building Interior ESG Claims
The boutique developer ConvergenCE has achieved Well “Platinum” accreditation for its Academia office center refurbishment project, the first renovation of an existing complex in Budapest to achieve the highest level of the third-party certification system.
The other WELL “Platinum” offices in Budapest are all by Futureal: Budapest One Business Park phases I, II and III, and the Corvin Innovation Campus I. In all, there are 16
The 7,800 sqm modern wing of Academia is one of only five office developments in Budapest to have been awarded WELL Core “Platinum,” the highest level of accreditation given by the International WELL Building Institute (IWBI).
The growing number of WELLaccredited buildings reflects the increasing concerns with the quality of interiors, as well as the market, regulatory, and well-being benefits (whether viewed through the lens of landlords, tenants, or building users), and the use of efficient data collection and analysis to achieve this.
“When investigating investment opportunities, ConvergenCE seeks assets that are undermanaged and where value-add potential may be unlocked,” says Zoltán Ligetvári, investment director at the developer.
“One of the key investment rationales from our side is to renovate and upgrade buildings and thereby capture higher rents through the execution of our leasing strategy,” he explains.
“In today’s market, to capture high rents and tenants with outstanding covenants, the buildings must be certified and meet certain ESG requirements. Upon any future exit from our investments, it is critical that the asset demonstrates the necessary certifications as well,” Ligetvári adds.
WELL Core and Fit-Out buildings in Hungary. The Agora Hub and Agora Tower, developed by HB Reavis, are both WELL Core “Gold” accredited buildings.
CBRE has traced six WELL-accredited buildings in addition to 89 Access4Youcertified office projects, including 65 retail developments and six hotels. This reflects the growing popularity of accreditation that evaluates buildings based on the quality of their interior and the extent to which this enhances the well-being and quality of life of users. This further enhances the value of a building as an asset.
Minimal Additional Costs
“In the case of luxury-level office design, the additional cost related to the WELL certification is a 0.8-1.2% extra on investment costs. Additional costs arise from choices and solutions such as low-emission carpets and furniture, better quality air filters, licensed water dispensers, on-site measurements, corporate mental and physical health support programs,” comments Regina Kurucz, managing director of Rewell Consulting and a WELL assessor.
“It is clear that the payment of the extra costs is largely within the scope of the tenant. Of course, additionally, the building owner is responsible for the appropriate quality of the common spaces, structures and amenities, furthermore for the healthy and safe building operation,” she notes.
offers scalable, data-based solutions for decarbonizing existing real estate.
“A modern, future-ready office complex must deliver energy efficiency, tenant well-being, digital integration, and resilience to climate and operational shocks. PM and FM functions are critical for ongoing performance; it’s not just about how the building is designed, but how it is run day-to-day,” he says.
ESG
is the Baseline
“Proximity to sustainable transport and adaptable infrastructure supports long-term value. ESG is the baseline; resilience and operational excellence are now the differentiators,” Abt adds.
An ESG-compliant office complex must prioritize sustainability and wellbeing at every stage, argues Dávid Hoffer, head of property management at Skanska Commercial Property Development Europe.
“In design, energy efficiency remains a core priority, supported by renewable energy solutions and the use of materials with a minimal environmental footprint. At Skanska, we also place strong emphasis on the social dimension of ESG: creating inviting place-making areas, integrating landscaped outdoor spaces with native plants and natural features, and ensuring that services and amenities meet diverse needs,” he explains.
“Companies should adopt WELL certification because it delivers measurable business outcomes while creating healthier, more productive work environments. Studies show WELL certification can lead to a 20% increase in employee productivity and a 10% reduction in absenteeism, resulting in a more engaged, productive and creative workforce,” Kurucz notes.
The expert notes that the certification process also serves as a crucial quality control mechanism for developers and building owners, ensuring that well-being features are properly designed, installed, and functioning as intended through rigorous third-party verification and performance testing.
“Beyond the immediate benefits of reduced sick days and higher employee satisfaction, WELL certification creates a baseline for Environmental, Social, and Governance reporting and benchmarking, helping companies meet growing investor and stakeholder demands for sustainable business practices,” Kurucz adds.
Operational functions are thus seen as absolutely central, not just to ESG, but to value retention.
“Property and facility management are where resilience is tested daily: energy usage, tenant satisfaction, cost control, and emergency preparedness. Transparent and accurate data enables investors and regulators to assess whether sustainability and resilience claims are credible. Without that, ESG becomes hollow, and increasingly, that carries financial and regulatory consequences,” comments Hubert Abt, CEO and& founder of Workcloud24, which
“Property and facility management must ensure operational efficiency, transparent energy usage reporting, and the long-term sustainability of the building. Amenities should support health, comfort, active lifestyles, inclusivity, and community-building, while location choice should favor accessibility, reduced transportation impact, and integration with local communities,” Hoffer says.
Without precise, traceable data, a credible ESG strategy is not possible. Katalin Honi, head of asset management at Colliers, views PM, FM, and transparent accounting as playing a crucial role in ESG, particularly in the collection and interpretation of reliable data.
Accurate figures on energy, water, and waste are crucial for calculating the carbon footprint, which relies on reliable operational reporting. Green certifications also depend heavily on FM-provided data. Beyond environmental metrics, transparency in health and safety compliance, indoor air quality, accessibility, and tenant satisfaction results all reflect the “Social” component of ESG and must be traceable and reportable, Honi argues.
“Amenities should promote wellbeing, inclusivity, and active mobility, such as dedicated cycling facilities, green spaces, and accessible public areas,” says Nándor Kovács, strategy director at Óbuda Group.
“Technical provisions, including energy-efficient innovative solutions (encompassing grey water reuse, advanced waste management systems, and smart building technologies for realtime monitoring of energy consumption, water usage, indoor air quality, and thermal comfort) are becoming standard practice,” Kovács concludes.
GARY J. MORRELL
The Corvin Innovation Campus by Futureal has been awarded WELL “Platinum” accreditation.
Reducing Carbon Emissions Benefits all Stakeholders
A reduction in emissions benefits all the various stakeholders in any real estate project, argues Norbert Szircsák, director, head of ESG Advisory Services at Colliers.
“Reducing emissions offers multiple advantages. Lower operational emissions translate to reduced energy consumption and, consequently, lower utility costs. When on-site renewable energy generation is implemented, these costs are further reduced,” he says.
On the embodied carbon side, minimizing material use can reduce both costs and transportation-related emissions. While low-carbon or highrecycled-content materials may not always be cheaper than conventional options, they are still preferable from a sustainability perspective.
Szircsák sees embodied carbon as “referring to the greenhouse gas emissions generated throughout the lifecycle of building materials, starting from raw material extraction, manufacturing, and transportation to the construction process itself.”
He adds, “Operational carbon encompasses the emissions produced during the building’s use phase. This primarily includes energy consumption but can also extend to water usage, waste generation, and even the commuting habits of building occupants.”
Regarding embodied carbon emissions and the steps required to achieve net-carbon reduction targets, Szircsák argues that the first stage is to reduce the quantity of materials used.
“Examples include concrete, which is the highest contributor, or, within the building interior, suspended ceilings, partitions, and wall or floor finishes,” the head of ESG advisory services says.
Low-carbon Alternatives
“Next, low-carbon alternatives should be added. Timber is a strong candidate, along with materials that contain high recycled content or are produced using lowemission technologies compared to traditional methods,” he argues.
Concerning the defined stages of the lifecycle of a given real estate project
and the tools that can be applied to reduce carbon emissions, Szircsák comments that the process begins with selecting the right location and plot, considering factors such as access to public transport, site orientation, and brownfield redevelopment potential. Not to mention that renovating existing buildings always has a lower carbon footprint than new builds.
Design is the next critical phase, during which decisions are made regarding material types and quantities, energy efficiency strategies, and the integration of renewable energy sources. Conducting a lifecycle carbon assessment at this stage can be highly beneficial, as it supports informed design decisions, particularly where there is a possibility to influence the subsequent selection of specific materials.
During construction, the choice of materials, especially those for the structural frame and façade, which can account for 60-75% of total embodied carbon, has a significant impact. It remains an issue how operational carbon emissions can be lowered to reach net-zero carbon goals.
“Reducing operational carbon is more straightforward, particularly when you have influence on the design. There should be a focus on maximizing energy efficiency (like the passive house principles in housing projects), integrating
MEP [mechanical, electrical, and plumbing] engineers and energy specialists is also crucial,” he emphasizes. When it comes to facilitating the economic use of water and stormwater, ESG expertise becomes vital. While energy efficiency often takes center stage, ESG also emphasizes water management among other topics.
Freshwater is not an unlimited resource. In Hungary (as elsewhere in the world), news reports highlight how droughts are causing agricultural losses, water shortages in suburban areas, and stormwater-related infrastructure issues.
“The built environment can help mitigate these problems by introducing water efficiency measures and properly treating stormwater, including reuse or infiltration,” notes Szircsák.
on-site renewable energy, and sourcing renewable energy locally, where possible,” says Szircsák.
“For existing buildings, the key focus is the same, but retrofitting should be planned with both financial and sustainability feasibility in mind. Efficient building operation also plays a crucial role in minimizing emissions,” he adds.
Reliable Data Key
Reliable data collection is seen as essential for understanding energy usage, identifying inefficiencies, and detecting system malfunctions. Tenants are increasingly aware of their carbon footprint and expect greater transparency, not just in electricity usage, but also in heating/cooling energy, water consumption, and waste generation. A robust Building Management System is central, not only for collecting data but also for actively managing and optimizing building operations to enhance efficiency and effectiveness.
“An ESG consultant should ideally be involved early in the design phase of new developments, advising on sustainable design choices and lowcarbon construction practices,” Szircsák insists.
“For existing buildings, they can identify impactful sustainability actions. Further, for retrofit projects, collaboration with
“An ESG consultant should ideally be involved early in the design phase of new developments, advising on sustainable design choices and lowcarbon construction practices. For existing buildings, they can identify impactful sustainability actions. Further, for retrofit projects, collaboration with MEP [mechanical, electrical, and plumbing] engineers and energy specialists is also crucial.”
Occupancy and demandbased controls are among the most effective strategies for controlling the use of resources for lighting, heating, ventilation, and air conditioning. Examples of this include daylight dimming, occupancy sensors for lighting and HVAC (heating, ventilation, and air conditioning), and demandcontrolled ventilation based on real-time measurements.
“Biodiversity is fundamental to maintaining clean air and water and regulating the climate. While biodiversity in urban areas may have a smaller global impact compared to forests, it can significantly influence local microclimates and human well-being. Trees, for example, provide shade, absorb CO₂, and filter air pollutants. Green roofs also offer multiple benefits: they insulate buildings, absorb rainwater and heat, reduce the urban heat island effect, and create habitats for local wildlife,” Szircsák concludes.
GARY J. MORRELL
Norbert Szircsák, director, head of ESG Advisory Services at Colliers.
ESG Impacts all Stakeholders in Offices
The most effective pressure on office developers and investors to adopt sustainable business practices and develop ESG-compliant products is seen as the mandatory disclosure obligation, which places a heavy burden on both landlords and tenants, according to Valter Kalaus, managing partner of Newmark VLK Hungary.
share of its office infrastructure is only 15 to 20 years old. Some Western European cities are in a more challenging situation than the Hungarian capital due to the number of older buildings that are outdated, from an ESG perspective.
GARY J. MORRELL
The more this drives the behavior of office owners, the easier it will be to assess the ESG compliance of complexes. The EU mandatory disclosure obligations require companies to report on their ESG performance and risks. Evolving technology enabling tracking and reporting is crucial to achieving this. When it comes to mandatory ESG compliance in EU office markets, Budapest is regarded as being in a relatively favorable position, as a good
In the current office market, where ESG elements are becoming a basic requirement, landlords face the difficult business choice of repositioning or repurposing, as owners need to examine the commercial feasibility of a given office building in a good location. If a major tenant relocates from an asset, the owner must consider the feasibility of upgrading the building or opting for a change of use. Carrying out an upgrade becomes a more complex process where there are still major tenants in situ.
From the tenant’s perspective, international companies require landlords to comply with mandatory disclosure regulations. ESG features and practices should be integrated into the daily life of an office complex, with efficient PM and
FM ensuring the sustainable operation of a complex that could reduce costs by 20%. This includes waste reduction, biophilia, solar energy, electric charging facilities and controlled air conditioning.
Long-term Value
“ESG-related pressures are exerted on all key market players, including landlords, financial backers and endusers, to exercise the traditional goals of risk management and long-term value appreciation through ESG-compliant products,” comments Kalaus. He considers ESG in real estate to be most clearly defined in the “Environmental” aspect, with broad adoption of features and practices by all actors.
Stakeholders typically need to consider three major issues: location, price, and ESG, and also how this impacts the wider population. With regard to location, an office needs to have good public transport connections, car access and electric battery charging facilities.
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Green Matters
A monthly look at environmental issues in Hungary and the region
“This is a team effort, and all market players need to work together with regard to ESG, including financers, developers, constructors, landlords and office operators. Offices will need to provide flexibility, smart systems and an employee-centric environment,” says Kalaus.
Sustainability accreditation has become a crucial factor in any successful office project; most of the office deals that Newmark VLK work on involve the requirement and need for an office building that is sustainability accredited.
“I am optimistic regarding the office market in Budapest. Office is a cyclical business, and with an upturn in office development, there will be a growing number of ESG-compliant, quality office developments in Budapest,” Kalaus concludes.
ESG Progress Accelerates in Hungary’s Business Services Sector
According to a recent study by ABSL Hungary in cooperation with Skanska, ESG topics have firmly entered the mainstream, with 91% of participating companies acknowledging their importance and increasingly embedding environmental and social considerations into daily operations.
The survey also highlights promising signs of progress, as more companies begin measuring their ESG performance and develop strategies to leverage sustainability as a competitive advantage. The research further reveals concrete steps being taken in areas such as carbon reduction and ESG-related performance tracking.
ABSL Hungary, in cooperation with Skanska, conducted the ESG Barometer survey at the end of 2024, with 35 companies participating, all of which operate in Hungary. These are typically international organizations employing hundreds or thousands of people, handling financial, customer service, HR, or IT functions on a regional or global level: 91% of respondents agreed that ESG is a key issue.
The survey shows that many companies are actively working to build stronger frameworks, implement practical tools, and develop a strategic mindset, moving steadily closer to fully integrating ESG commitments into their daily operations.
“ESG is becoming increasingly vital for large companies, as it enables them to effectively manage risks, strengthen their reputation, and respond to growing expectations from investors, regulators, customers, and employees who value sustainability and ethical business practices,” says István Lenk, president of ABSL Hungary.
“Through our partnership with Skanska, ABSL is committed to providing businesses with expert support across all areas of ESG, helping them build more responsible and resilient organizations,” he adds.
The study shows evident progress at both global and local levels: the majority of surveyed companies already have a formal ESG strategy in place, demonstrating significant strategic commitment across the sector. Locallevel implementation is also gaining momentum, with many companies setting concrete goals; more than half have clearly defined carbon emission reduction targets.
Furthermore, 83% of respondents feel their organizations are ready or well-prepared to operate in an ESGresponsible way, underscoring a growing level of strategic maturity.
The survey placed a strong emphasis on the “Social” dimension of ESG. A significant number of companies offer initiatives to support employee wellbeing, encompassing both physical and mental aspects, and more employers are seeking work environments that promote sustainable and healthy operations.
According to Skanska’s experience, tenants in the business services sector are no longer just looking for offices in class “A” buildings; they want spaces
that promote active lifestyles, foster a sense of community, and support work–life balance. This is not just an ESG consideration, but a competitive advantage in the battle for talent.
“Beyond environmental responsibility, more companies are recognizing that ESG is also about the employee experience. The social component becomes a priority now, comments Dávid Hoffer, project manager at Skanska Commercial Development Europe.
“Workplace well-being, the quality of shared spaces, and functional office design are no longer just HR or operational concerns; they are strategic factors for competitiveness. As developers, our role is to create spaces that deliver meaningful value to the people who use them,” he adds.
One of the key takeaways from the survey is that ESG in the business services sector is not just a requirement; it is increasingly seen as an opportunity. According to 77% of respondents, ESGaligned operations can improve employer branding, boost reputation, and strengthen long-term competitiveness.
Valter Kalaus
EPTA’s office in the Green Court office building. The ESG criteria and the environmental certifications have a played a major role in the office space selection process that was spearheaded by VLK Newmark.
Access Needed in Office Design
A ramp to the entrance, wider doors, and an elevator next to the stairs; for many, this defines what accessibility means. But is that truly enough to make a space inclusive? The European publication, “Switch to Inclusive Design 2.0,” states that accessibility today encompasses much more than physical access. It also shows how we can work together responsibly and effectively to achieve it, says contributing developer Skanska.
“A space might be physically reachable but still difficult to use: too bright, too loud, too overwhelming,” the report, created by the Polish Integracja Foundation, in collaboration with several partners, including Skanska, emphasizes. It stresses how complex sensory experiences shape spatial perception.
“Elements like noise levels, lighting, materials, and colors can impact how welcoming a space feels, just as much as a staircase or doorway width,” the report finds. It highlights,
“Around 15-20% of users are affected by such environmental stimuli on a daily basis, yet their needs are rarely addressed during planning,” it argues.
“Some leading international companies like Skanska are already demonstrating what real inclusivity looks like in practice. Their office developments have received the Building Without Barriers certification, which confirms that these environments are not just accessible, but livable for all,” comments Aurelia Luca, executive vice president of Skanska’s Commercial Development Business Unit in Hungary and Romania.
“At Skanska, we believe that truly inclusive design begins with a deep understanding of the diverse people who engage with our spaces; not only our tenants but also visitors and the broader community. This principle is at the heart of everything we do across Hungary, exemplified by our H2Offices project in Budapest,” she adds.
New Rooftop Solar Panel System Installed at Budapest One
Nearly 150 solar panels with a total capacity of 81.76 kWp have been installed on the roof of phase one of the Budapest One office building. The green energy generated by the system further reduces the building’s emissions while also lowering energy costs for its tenants, according to its developer, Futureal.
The 146 solar panels collectively generate 80,000 kWh of energy annually, reducing the building’s carbon dioxide equivalent emissions by nearly 18 tons each year. Their installation means Budapest One’s energy performance certificate rating has improved from “CC” to “BB.” The green energy generated by the system
could result in annual savings of several million forints, which will proportionally reduce tenants’ energy costs.
“From the very beginning, our goal with Budapest One was to create a human-centered, sustainable building that meets even the most demanding expectations of our tenants,”
says Gábor Radványi, chief architect and head of sustainability at Futureal.
The 66,000 sqm Budapest One complex has achieved “Gold” Access4You certification for its outstanding accessibility and meets the top “Platinum” WELL rating. In addition, the development has achieved a BREEAM “Excellent” rating.
Customs Yard in Vác Funded by Private Investor
A new customs yard was inaugurated on Aug. 28 in Vác (35 km north of Budapest by road), according to state news agency MTI. The facility, built through an investment exceeding HUF 500 million, will serve the capital, northern Pest County, and Nógrád County, according to State Secretary Bence Rétvári of the Ministry of Interior, who spoke at the opening ceremony. He added that the full cost was borne by a company that had previously developed one of Hungary’s largest smart warehouses in Vác. Rétvári also noted that recent railway infrastructure improvements have enabled container trains from China to reach the region in 26 days.
Luxury Housing Market Slows as Wealthy Wait for Elections
Hungary’s luxury real estate market has cooled as wealthy buyers hold back ahead of next year’s elections, according to property broker Duna House, telex. hu reports. The number of transactions decreased by 4% in July compared to June and was down 18% from the same period a year earlier. Fewer foreign buyers are active, leaving domestic clients doing most of the purchasing, primarily for personal use. Duna House noted that luxury in Hungary means more than high prices, with unique locations, premium construction and amenities such as panoramic views, smart-home systems, pools and multi-car garages defining the segment. Despite the slowdown, demand remains steady for truly unique, top-tier properties, with prices varying widely: hundreds of millions of forints in the countryside versus billions in popular parts of Buda. After booming during the pandemic, the market has turned cautious, with fewer in-person viewings and longer decision-making times. Investment-driven purchases have declined due to weaker returns, while Hungarian investors increasingly look abroad, with destinations like Portugal and Dubai offering more attractive opportunities, albeit with higher risks.
Modern, Renovated Office Destination in the Heart of District IX
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Time to Standardize ESG Ratings: Investors Can’t Wait
It is far from transparent what basis ratings providers use to assess businesses’ ESG efforts. The situation, often treated with cynicism, is ripe for change, which would help investors make more informed decisions at last.
When you hear the term “ESG rating,” you may be tempted to associate it with real estate certification systems such as LEED or BREEAM that assess a broad range of sustainability factors. However, ESG ratings encompass much more than just that; so much so that they have become somewhat of a maze. This creates a headache for investors who struggle to cut through the noise and gain a clear view of a company’s performance on the sustainability front.
ESG ratings and providers employ distinct methodologies for that purpose, varied scoring scales (whether it is MSCI’s “AAA” to “CCC” letter scale, or the percentile-based 1-100 scores used by some other providers), and industry-specific comparisons. They weigh business performance and risks on an individual basis.
Regardless of whether the rating is based on a letter or number scale, the key is for companies to be aware of their actual risks and opportunities, and for capital market players to make decisions based on consistent information.
Businesses are increasingly under pressure, not only because their customer base often has elevated sustainability expectations, but also because their eligibility for receiving finance very much depends on their rating score.
Banks, which have their own ratings to consider, are increasingly wary of less sustainable projects and therefore withhold resources. In fact, according to the National Bank of Hungary (MNB), domestic banks are performing least well in the area of risk management, and the MNB is supporting players with numerous initiatives to identify the effects of climate risks.
Carbon Risk
One such is the Banking Carbon Risk Index (Banki Karbonkockázati Index or BKI, for short), which has been measuring the climate risks of the domestic banking system since 2021. According to the BKI, at the end of 2024, nearly 15% of domestic corporate loans were considered risky, meaning they were linked to high
greenhouse gas intensity activities. Many view current ESG ratings with considerable skepticism due to their subjective methodology and inability to integrate available data into a final score in realtime. (However, a real-time benchmark can actually be achieved now thanks to state-of-the-art AI solutions.)
An EY analysis addresses the challenges related to these reservations. The old programmers’ “garbage in, garbage out” principle, often mentioned in connection with AI, also applies in the world of investment. According to this principle, if the quality or consistency of ESG data is questionable, it will also leave its mark on green (or at least supposedly green) investments, as it misleads the players.
As EY experts point out, investors currently have no choice but to work with fragmented information from a variety of sources, including company reports, newspaper articles, business partners, and rating agencies. To make informed decisions and prevent greenwashing, the process of ESG data integration must be accelerated. Ideally, ESG reports should achieve the same level of rigor and relevance as financial reports.
The transparency of data collection and classification also leaves something to be desired, as some rating agencies overemphasize specific ESG criteria, even though they are not equally important for all companies.
Consistency Questions
At the same time, data consistency is a sensitive issue because, although everyone is advocating for methodological consistency, it is also true that material risks can vary significantly from company to company.
“With investors trying to compare likefor-like, data consistency is another big challenge,” says EY. However, the firm adds, “There is an argument that standardization of scoring methodologies is not always appropriate since different enterprises will face different materiality of risk.”
You can add to that a lack of available ESG data: almost perversely, highercarbon industries have better quality data available than, for example, agriculture or forestry. The latter, therefore, have a lot of catching up to do. The icing on the cake is that ESG scores are backwardlooking, based on the previous year’s performance; however, it would also
The Ratings Issue Across Borders
The European Union has taken a significant step in strengthening the transparency of rating agencies’ activities through the establishment of the Paris-based European Securities and Markets Authority’s supervisory role. However, real change can only happen if market players are also committed to sustainability out of their own internal motivation.
This demonstrates that the EU’s commitment to sustainability is unwavering. At the same time, in the United States, there is a shift
back towards traditional economic policy, including a reduction in clean energy investments and the fact that, in the future, listed companies will no longer be required to report on financial risks related to climate issues.
President Donald Trump’s reversals on green issues are leading to increasing fragmentation in the U.S. market. They may also reinforce the phenomenon of greenhushing, where companies, fearing political discrimination, prefer not to showcase their ESG achievements.
be beneficial to quantify the long-term future commitments of economic actors. The OECD adds to this by stating that twothirds of the metrics used to measure ESG performance are input-based. In other words, they rely on corporate policies, objectives, and measures aimed at ESG impacts, risks, and opportunities. In contrast, the role ofthe business environment is negligible, and forward-looking metrics, which are essential for monitoring the achievement of individual goals, are largely absent from the data sets.
At the same time, there can be striking differences between assessments. In some cases, up to 28 times
more indicators may be used to assess the same topic on one form than in using another methodology.
The available data is generally insufficient to measure the degree of compliance with the recommendations in the OECD guidelines, as they are based on controversial metrics that penalize companies for the mere existence of risks and for negative impacts identified in their operations and supply chains.
In parallel, Asia is emerging as a powerhouse for green investments, led primarily by Taiwan and China. This is clearly reflected in ESG-related investments: ESG exchange-traded funds in the Asia-Pacific region are surging by 10% annually, with their volume expected to reach a record USD 50 billion this year.
Thanks to this recent surge and the continued commitment of Europeans, and despite the relative decline in the United States, Bloomberg forecasts that ESG capital market assets could reach USD 40 trillion globally by 2030.
Jake Lodge, Celestin HuotMarchand, Benjamin Perez Ellischewitz
Róbert Tilki –Nikoletta Jámbor
András Csillagh Kinga Bagó Török
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Valter Kalaus Valter Kalaus Emőke Vass
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út 78. (1) 374-3040 office.hungary@cbre.com
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1054 Budapest, Szabadság tér 14. (70) 333-4141 office.hungary@ iopartners.com
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4 Socialite
What the Hekk? In Search of Hungary’s Summer Fish Treat
Our British writer about town, David Holzer, finds himself on a Budapest break from his usual haunts in Szeged, and determined to keep the summer vibes going.
I’m fortunate enough to be spending the month of September in an apartment high up on the Buda side of the city. On my Buda bucket list are swimming at one of the pools on Margaret Island, going for a tramp across the Buda Hills, investing in coffee and cake at the Scandinavianstyle Nor/ma Grand café, just down from Széll Kálmán tér, among the fragrant locals, and taking in a movie at the Bem cinema. Most of all, I’m salivating at the thought of eating hekk or hake and fries down at Római Strand.
Growing up in the United Kingdom by the North Sea, I can only remember eating freshwater fish once. My father brought some eels he caught back from a fishing trip; he breaded and fried them, and they tasted of mud and misery.
Back in the 1970s, when there were still enough cod in the North Sea to mean fish and chips was a meal a family could afford, we only ever ate hake when we wanted an even cheaper alternative. An extraordinarily densely fleshed fish, hake filled you up in a way the delicately flaked cod never did. It was like eating a piece of battered driftwood.
Imagine my surprise when I arrived in Hungary and discovered that freshwater fish, tasting only mildly earthy, is a restaurant staple and hake, known here as hekk, is the treat du nyári. The first big question to consider about hekk is why it’s in landlocked Hungary in the first place. At first,
I thought it must have been brought into the country from one of its neighbors with a seaside; Croatia, perhaps.
Seaside Sentimentalists
I’d learned that, having had their coast stolen from them by the 1920 Treaty of Trianon, Hungarians are deeply sentimental about the sea and thought that eating saltwater fish could be a way of connecting to the country’s marine past. A culinary version of those Hungarian TV weather reports that show conditions in parts of what was this country before it was sliced and diced by the victorious and not at all vindictive Allied and associated powers.
The fact that hekk is not one of the many types of sea fish found in Croatian waters rather scuppered this theory.
Sea bream, monkfish, sardines, John Dory and Dentex, which sounds like a brand of false teeth fixative to me but is, apparently, delicious grilled or baked, yes. But not hekk.
I’ve been given a more prosaic potential reason for the rise of the hekk here. Hungary began exporting its highest-quality freshwater fish to other countries in the 1960s,
These factors have made Hubbsi hake one of the most consumed salt fish in Europe. The Spanish, who seem to eat anything that comes from the sea and have, of course, close ties with Argentina and Uruguay, eat around 6 kg a year. Other major consumers are France, Portugal and the United Kingdom. I must admit that I’ve only ever eaten hekk at the Római Strand, at my Hungarian sister-in-law’s favorite restaurant. She and her husband decided on this particular place after sampling the fish at all the other hekkeries on the strand. I have no idea what it’s called. All I know is that they talk about visiting “The Hekk Man.” But I don’t think wandering along Római Strand asking “Have you seen the Hekk Man?” is going to help you find hekk-heaven.
Hungary began exporting its highest-quality freshwater fish to other countries in the 1960s, but this led to a shortage of decent local pike-perch, carp, or catfish. Frozen hake was imported from Argentina to fill the gap.
In any case, I think you should take responsibility for your own hekk choices. I know from bitter experience that if I recommend a particular joint as serving the best whatever in the city, someone will visit and delight in telling me that it wasn’t anywhere near as good as the whatever they had somewhere else.
but this led to a shortage of decent local pike-perch, carp, or catfish. Frozen hake was imported from Argentina to fill the gap.
Argentinian or, as I prefer, Hubbsi hake is found in large shoals in the cold waters of the South Atlantic near Argentina, Uruguay and the British Overseas Territory of the Falkland Islands, and is caught using vast nets that trawl the Atlantic seabed.
I had thought the name “Hubbsi” might point to a Hungarian connection, as it sounds like the kind of nickname one Magyar lad might give another, but it’s actually a tribute to prominent ichthyologist or fish studier Carl Leavitt Hubbs. He also gave his name to a dried-up lake in Nevada.
Delightful Mouthfeel
Hubbsi hake meat is white and extremely low in fat, which adds to the flavor when you bite into a greasy chunk coated in sweet, paprikainfused flour. One serving of hekk will give you most of your recommended daily intake of vitamin B12. It’s also not a particularly bony fish, which makes it more child-friendly.
Mind you, I’m intrigued by the Dunaparty Stop restaurant in Újbuda on the banks of the Danube opposite Savoya Park, which serves hekk, lángos, and beer from a British red double-decker bus. The truth is, wherever you eat your hekk, outside a transplanted doubledecker bus or from the aforementioned Hekkmester on Római Strand, it is going to be served with “csemege uborka” pickles, white bread, mayonnaise or tartar sauce, and sweet paprika-dusted fries. If you’re choosing a hekk specialist, you might want to adopt the time-honored principle of picking a place that’s packed with what look like locals, especially if they’re of a certain age. After that, it comes down to factors like the size of your hekk, whether it’s piping hot or not, the generosity of the pickle portion and, most telling, the quality of the fries.
Római Strand is easily accessible by public transport or bicycle. If you’re thinking of driving, bear in mind that it can be hard to find a parking space, especially at the weekend, and, given the zero-tolerance approach to drink-driving in this country, you will not be able to wash down your fish with anything alcoholic.
Balaton-style hake (balatoni hekk), served here breaded, deep-fried, with sour vegetable pickles and garlic bread toast, is a popular Hungarian summer dish.
DAVID HOLZER
Photo by
in Brief News Culture
360 Design Budapest Wins 2nd Red Dot Award
The 360 Design Budapest exhibition has received another international honor, securing its second Red Dot Award, according to a statement released by the Hungarian Fashion and Design Agency (MDDU) on Aug. 25. The 2024 exhibition won in the “Brands and Communication Design” category. Last year’s event, staged in the former waiting room of Nyugati Railway Station in October as the main program of Budapest Design Week, showcased nearly 300 works by renowned artists, established designer brands, and emerging talents. The exhibition previously won its first Red Dot Award in 2021 for its “phygital” (physical and digital) concept.
Nemes, Enyedi Compete at Venice Film Festival
A pair of new Hungarian feature films, “Orphan” (“Árva”) by László Nemes and “Silent Friend” (“Csendes Barát”) by Ildikó Enyedi, are screening in competition at the 82nd Venice International Film Festival, which opened on Aug. 27, according to a statement issued by the National Film Institute. Both titles received NFI support. “Orphan” was screened on Aug. 28, and “Silent Friend” was due to be shown to the public today (Sep. 5). Nemes, the Oscar-, Golden Globe- and BAFTA-winning director of “Son of Saul” and “Sunset,” based
his latest Hungarian-British-FrenchGerman co-production on personal family history. “Orphan” will make its Hungarian premiere at the Miskolc CineFest on Sep. 12 and enter general release in Hungary from Oct. 23. Enyedi, the Golden Bear-winning and Oscar-nominated director of “On Body and Soul,” explores a philosophical parallel between human and plant relationships in her German-FrenchHungarian co-production, scheduled for theatrical release across Europe in the first half of 2026. Co-productions now play a key role in Hungary’s film industry, the NFI added, offering broader distribution potential and increased international exposure.
Culture Minister Presents Aug. 20 National Awards
Minister for Culture and Innovation Balázs Hankó presented state awards to artists, doctors, scientists, academics, and other honorees on the occasion of Hungary’s Aug. 20 national holiday, according to a statement issued on Aug. 19. “Our nation’s birthday is not the holiday of just one country, but of every Hungarian,” Hankó said at the ceremony. “It belongs to those whose birthday is celebrated from generation to generation by their family […] our nation, Europe and the entire world because their legacy lives with us to this day.” He emphasized that King St. Stephen had not only established a homeland but had done so on the foundation of Christianity, “the cornerstones of which are our culture
shaped by our faith, our knowledge that aims to make the world better, our vocation to serve our community, and the guarantee for the future of our nation: our families.” Hankó and State Secretary for Higher Education, Vocational and Adult Training Veronika Varga-Bajusz presented the Commander’s Cross, Officer’s Cross, and Knight’s Cross of the Order of Merit of Hungary, Civilian Division, along with the Gold, Silver, and Bronze Crosses of Merit of the Civilian Order. Hankó also conferred the Master of Folk Art, Young Master of Folk Art, the Minister’s Certificate of Recognition, and additional art awards together with State Secretary for Culture Magdolna Zavogyán.
Lovász Wins Erasmus Medal for Lifetime Achievements
Research Professor of the HUNREN Alfréd Rényi Mathematical Research Institute and former head of the Hungarian Academy of Sciences László Lovász has been awarded the Erasmus Medal by Academia Europaea in recognition of his “outstanding level of international scholarship as recognized by peers” maintained over a sustained period of time. The institute stated that the prize is among the highest distinctions awarded by the Academia Europaea for scientific achievement. Lovász will be presented with the medal and deliver the Academia Europaea Erasmus Lecture at the organization’s annual conference in Barcelona on Oct. 16. According to the laudation on the Academia Europaea website, Lovász is “a towering mathematician of our age” and “a defining force in discrete mathematics and computer science over the past 60 years.”
Hungary L!ve Festival Showcases Contemporary Art in NY
A festival of contemporary art, featuring exhibitions alongside theater and dance performances, runs in New York from September 3-7. The Hungary L!ve Festival will include the premiere of “Enemies of the People,” a play by Erika Marozsán, István Mohácsi, and János Mohácsi; “Orpheus and Euridice” by Krisztián Grecsó and Beatrix Trisha Simkó; a staged reading of Csaba Székely’s “10;” and a screening of “Raw Material” by Márton Boross. OIEE (Bence Kocsis) will perform at the Nublu club, while Grecsó and Simkó will lead workshops at the Movement Research studios. Additional performances and concerts will be hosted at The Gallery at Dobbin Mews and the TBSP Studio.
Bartók Feszt Focuses on Community, Music
Bartók Feszt returned to the Bartók Quarter on Saturday (Aug. 30) for a full-day celebration centered on community, music, and creative exchange. More than just a cultural event, the annual festival invites locals and visitors to reflect on what makes a city livable: shared knowledge, mutual support, and human connection. This year’s theme, “Togetherness and Sharing,” emphasized the role of cooperation and care in creating inclusive urban spaces, such as Budapest. The Zsiga Stage hosted live performances throughout the day, featuring iconic Hungarian singer Kati Kovács, emerging talent Cserihanna, and bands Bongor, Kolibri, and Bohemian Betyars, known for their genreblending and multilingual style.
Farkas, Kapu Receive Hungary’s Highest State Honor
Cosmonaut Bertalan Farkas, who on May 26, 1980, became the first Hungarian to travel to space and spent a week on the Soviet Union’s Salyut 6 orbital space station, and astronaut Tibor Kapu, who has just returned from a mission aboard the International Space Station, were awarded the Hungarian Order of St. Stephen, the country’s highest state honor, by President Tamás Sulyok to mark the Aug. 20 national holiday, according to state news agency MTI. Sulyok said the two had “not only written their names in the history of space research and world science but also in the hearts of Hungarians.”
Former cosmonaut Bertalan Farkas (left) and astronaut Tibor Kapu after being presented the Order of St. Stephen of Hungary at the Sándor Palace on Aug. 20, 2025.
Photo by Szilárd
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 guests to return to a quintessentially British sport, the ancient pastime of golf, sponsored by loyal member FirstMed. The event will feature a full nine-hole game for experienced players, coaching for newcomers, and a reception with food and refreshments provided by our hosts, Botaniq Máriavölgyi Golf Klub. Transportation to and from the venue will be provided by BCCH partner Budapest Motors, departing from the Dorothea Hotel Budapest. • Where: Botaniq Máriavölgyi Golf Klub (8087 Alcsútdoboz, Máriavölgy) • When: Thursday, Sep. 18. The nine-hole game starts at 10 a.m.; the nongolfers’ events at 11 a.m. There is a limited number of available spots for the transfer, which will set off a few minutes after 10 a.m. from the Dorothea. • Fees: Members HUF 20,000 + VAT; non-members HUF 30,000 + VAT. We would like to facilitate a friendly golf competition among chambers at the event and hope to see many non-BCCH members in attendance as well. If you are not part of the BCCH but a member of one of our partner chambers, member rates apply.
Netherlands-Hungarian Chamber of Commerce (Dutcham)
The EU Chambers business community invites guests to its first fall event, designed to help prepare for the budgeting season with expert business insights. Join the lively conversation and great business networking opportunities with the representatives of the European bilateral chambers in Hungary. The keynote will be from Prof. Ákos Péter Bod, lecturer at Corvinus University, doctor of the Hungarian Academy of Sciences, former president of the National Bank of Hungary, followed by Zsolt Becsey, chief economist of Macro and Market Research at UniCredit Bank Hungary Zrt., with his presentation “Where Will we Land in 2025 and Outlook 2026.” This will be followed by a panel discussion on expectations for next year, including salary increases, consumer demand, inflation, and foreign exchange rates. Confirmed panelists are Becsey, Sándor Baja, managing director for Randstad in Hungary and Romania, and Ágnes Bejo, partner in M&A and commercial law at Jalsovszky. The moderator will be Albert Hulshof, the head of the corporate division at UniCredit Bank Hungary. This, in turn, will be followed by networking. The language of the event will be English with no translation provided.
• When: Wednesday, Sep. 17, 4–7 p.m.
• Where: Randstad Hungary, Green Court Office, Dózsa György út 146-148, Building “A,” Budapest 1134.
• Fee: Members of organizing chambers: HUF 13,000 (incl. VAT); non-members HUF 20,000 (incl. VAT). The price includes soft drinks, coffee, and finger food. A maximum of 50 guests can be accepted on a first-come, first-served basis.
Canadian Chamber of Commerce in Hungary (CCCH)
On Oct. 9, the CCCH will host its Business and Geopolitical Forum for SMEs, under the theme “Uncertainty and Opportunity: Economic Growth in a Changing Geopolitical Landscape.” The half-day event will take place at Akadémia Offices in Budapest (Akadémia utca 6, 1054), gathering participants from the business community, academia, and policy circles. The forum will open with welcoming remarks from the president of the chamber, followed by a keynote speech from György Surányi, former President of the Hungarian National Bank, who will share insights on Europe’s economic outlook in turbulent times. A high-level panel with experts will then examine critical themes, including EU competitiveness, political shifts, the role of Central and Eastern Europe, and the future of transatlantic trade. The program will conclude with a closing talk by Hold Asset Management Ltd., providing practical strategies on “How to Invest in Times of Uncertainty.”
Italian Chamber of Commerce for Hungary (CCIU)
The CCIU is pleased to invite its members, partners, and those interested in joining the chamber to a special event marking the restart of activities after the summer break. “AperiNetwork,” is an informal gathering dedicated to dialogue, exchange, and conviviality; we will meet in the heart of Budapest for an evening aperitif at sunset, designed to strengthen ties among members, welcome new faces, and kick off the second half of 2025 with renewed energy and a spirit of collaboration. This event is a unique opportunity to toast together, exchange ideas, and foster new connections in a relaxed and inspiring atmosphere, an ideal setting to relaunch projects, build partnerships, and energize the Italian business community in Hungary. On our Instagram profile @cciu_molk, you can find a link to a Google form to register for this event, or you can email the chamber. • When: Friday, Sep. 5 • Where: Pullman Budapest, Nagymezo utca 38, Budapest 1065 • Fee: CCIU members: HUF 1,500 / person + VAT; non-members: HUF 2,000 / person + VAT
Hungarian-French Chamber of Commerce and Industry (CCIFH)
The CCIFH, in partnership with the Matild Palace Budapest, Kikelet Tokaj Winery, the Austro-Hungarian Business Council, the British Chamber of Commerce in Hungary, Confindustria Ungheria, and the CzechHungarian Business Club, invites the business community to its season-opening event, “French Riviera Rooftop.” The atmosphere of the French Riviera meets Budapest’s most elegant panorama on the rooftop terrace. French cocktails, wine tasting, gourmet bites, live music, sunsets and exceptional company: this is the French Riviera Rooftop. The CCIFH intends to extend summer for one more evening, experiencing the magic of freedom, style and the French way of life!
• When: Tuesday, September 9, 2025, from 5:00 p.m. to 8:00 p.m. • Where: Matild Palace, The Duchess Rooftop (1056 Budapest, Váci utca 36). • Fee: Members: HUF 26,900 + VAT/ person; members of partner organizations HUF 29,900 + VAT/person; non-members HUF 36,900 + VAT/person.
Swiss-Hungarian Chamber of Commerce (Swisscham)
We are pleased to invite you to an exclusive reception to welcome the new Ambassador of Switzerland to Hungary Alexander Renggli, and the new Deputy Head of Mission Daniel Cavegn. Join us for an evening of networking and informal conversations in an elegant Art Nouveau setting, where our guests will also have the opportunity to view a unique private Zsolnay collection. The renowned Zenobia Restaurant will provide the evening’s culinary experience.
• When: Sep. 18, 5:30–8:30 p.m. •• Where: ResoArt Villa, Városligeti fasor 47, 1071 Budapest •• Fee: For Swisscham Hungary members and invitees only. Members HUF 28,000 / person (0% VAT).
The German-Hungarian Knowledge Center (DUWZ) launches a highly topical and professional training program for top and mid-level managers, offering a unique opportunity to gain professional insight into integrating AI into strategic decisions and business processes. AI is much more than just ChatGPT; it is a powerful tool and transformative force that creates new business models and fundamentally reshapes the way companies operate. Organizations that integrate AI into their strategy in a timely and deliberate manner can gain a significant competitive advantage, including faster decision-making, cost optimization, new revenue streams, and higher customer satisfaction. The new DUWZ training targets senior and middle managers, directors, functional area
managers and HR professionals. It has a practical focus, covering specific tools and methods, so participants can immediately start their own AI projects. Professional Experience in IT or AI is not required. The 64-hour Hungarian-language course starts on Sep. 17, and topics will cover the strategic importance of AI, the technological background, implementation requirements, ROI calculation, organizational readiness, project selection and will end with an exam and project presentation. It combines face-to-face and online learning, making it an ideal choice for companies and professionals who want to stay at the forefront of digital transformation. Participants will receive an international AHK Certificate upon completion. www.ahkungarn.hu/hu/kepzes
German-Hungarian Chamber of Industry and Commerce (DUIHK)
Your Favourite Sunday Brunch is Back!
Sundays are for indulgence — enjoy the return of your beloved Spago Brunch with refined dishes, handcrafted desserts, and refreshing drinks.
Little ones will love the Kid’s Corner and entertainment, while you relax and savour the moment. Join us for the city’s most stylish Sunday tradition — because weekends deserve to be celebrated.
