The View 9

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Annual New Industrial Supply and Forecast in Hungary

Source: CBRE Research

The suspension or delay of certain prominent projects such as the Mercedes and BMW plants have visibly dampened the enthusiasm, having gone fromplans for speculative developments in Kecskemét and Debrecen to idle anticipation in a matter of a year – though the BMW plant now looks set to move ahead, perhaps mitigating risks for the significant auto-related new supply in the pipeline. Another cause of the recent lacklustre tempo in the countryside industrial market is the shortage of available labour, which still affects both supply and demand, particularly pertaining to manufacturing facilities. On the other hand, the earlier expectations for increased speculative development in the more logistics-driven Greater Budapest region are turning out valid, which is likely to keep developers busy.