The interview also explores the dilemmas faced by developers and tenants, the challenges of urban logistics, and Hungary’s international competitiveness.

According to the BIEF/BRF's industrial and logistics real estate market data for Q1 2025, the vacancy rate has risen above 10%. You are generally optimistic in your statements. Can you reassure us that there’s no cause for concern yet?

Basically, yes. I believe it's important that supply and demand remain in balance, and that vacant spaces do not dominate to the extent that an imbalance develops.

Can we say that the warehouse market boom that began during Covid has subsided, but that the sector is healthy—or at least in better shape than the office market?

Yes, and there are other differences too. There are fewer players on the supply side, and an important shift is that rural locations are gaining significance in the industrial property sector. Out of a total stock of 5.7 million square metres, 1.9 million are in rural areas and 3.8 million in the Budapest area, meaning that the capital's dominance is less pronounced. This shift is the result of developments over the past 3–5 years, mostly to support the automotive and battery manufacturing industries.

What is the current mood and state of the market?

I’d describe it as consolidated and mature. This is a time of waiting and strategic re-evaluation, partly due to uncertainties surrounding tariff wars. Although their application has recently been suspended, President Trump has not ruled out using tariffs as a trade weapon, which makes planning more difficult. For example, it's hard to predict future production capacity needs or the direction of consumer spending, which is crucial for trade. Developers are preparing projects, but they won’t proceed without tenants.

As a consultant, what advice do you give to investors and tenants?

Tenants are the ones in more of a holding pattern, facing uncertainty and therefore hesitant to make strategic decisions. They simply don’t have enough reliable information. Developers, on the other hand, are more eager to gain market share and push forward, which is natural. They’re proceeding cautiously—those with land are going ahead with planning and permitting, but are not starting construction without pre-leasing. In fact, 51% of all transactions in Q1 were pre-leases. While this is lower than in the past, it still reflects a balanced market.

Construction capacity had been a bottleneck in the past. Has that situation changed?

There is more construction capacity available now, but it hasn't impacted pricing. Even though capacity has increased, prices haven’t come down, as labour and material costs remain high. That said, the pace of price increases has slowed.

As the head of ESTON, you also have insight into regional markets. How competitive is Hungary in the industrial sector? How does a place like Dunaharaszti compare to Brno, for example, when deciding where to build a warehouse complex?

They’re not direct alternatives. From an investment point of view, perhaps, but not from a user’s perspective. Logistics costs are calculated down to the penny, and cities like Budapest and Brno don’t compete directly. Logistics locations are chosen based on key transport routes. If a location is off the ideal route, the rent must be lower to compensate. In manufacturing, other factors matter too—labour availability and cost, local incentives, tax breaks, or supplier proximity.

You and ESTON have been key market players for decades. What would help the logistics sector grow? Where do you see new momentum coming from?

The urban logistics segment is underdeveloped. It’s difficult to find suitable city sites for modern last-mile delivery centres. As the city expands, brownfield sites are being repurposed, often prioritizing residential or commercial use. This makes it harder for last-mile logistics providers to find viable sites. Rákosrendező could be a great location, but logistics functions are not seen as attractive—even though there’s demand from both developers and investors.