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New Retail Entries in Hungary

Source: CBRE Research

CBRE currently monitors ca. 35,000 sq m retail space as part of either residential, office or hotel projects, known to be under construction across the capital. Another alternative to new shopping centre supply could be refurbishment and repositioning of existing centres. Several major schemes traded hands over the past few years and there is a handful of others that recently had their planned refurbishments announced, both comprehensive refurbishments and smaller ones. Budapest saw three of its shopping centres (Csepel Plaza, Shopmark, Csillag Center) either partially or fully refurbished in the last two years with a total GLA of 50,000 sq m. Smaller renovations to mostly the food court areas will be undertaken in several major schemes including West End, Allee and Polus. Plans are being finalized for major overhauls of more add-value assets

including KÖKI and EuroCenter with the landlords looking to improve tenant-mix and increase rental levels. Almost 200,000 sq m assets outside the capital have also benefited from change in ownership recently. Local property company Indotek recently acquired Klepierre’s last four remaining centres in Hungary increasing their shopping centre portfolio sizably. The elements of the portfolio have either been partially refurbished or will be subject to significant works in the following years - including first generation shopping centres at central location in various secondary cities across the country.

Rental Rates by Retail Formats

Source: CBRE Research