February 2021: Update on real estate development in Budapest
Updated: May 4, 2021
The current health situation does not seem to disturb the economic development of Hungary or the dynamism of Budapest.
Numerous large-scale real estate programs will emerge in the coming months. The Budapest Housing Market Report foresees in 2021 the marketing of 25 projects of more than 100 apartments. A total of 6,700 apartments from new programs are planned in the Hungarian capital.
On the office real estate side, 4 major projects will see the light of day during the year:
- The new phase of the Futureal Budapest One project (66,500m²)
- The development of BudaPart in the 11th district (20,000m²) which will see the tallest tower in Hungary (120m) rise from the ground
- The development of Wing in the 11th arrondissement (44,000m²)
- New developments by the developer Atenor in the 8th and 3rd arrondissements (15,500m²)
In the hotel sector, many 4 and 5 stars will reopen their doors following major renovation campaigns.
In January, the W group started construction of a future hotel in the Drechsler Palace on Andrassy Avenue. The building, built between 1883 and 1886, is renaissance and neo-Gothic in style and is a UNESCO World Heritage Site. The place, which will have 151 rooms and suites, should open its doors in 2022. This development is supported by the government, which is introducing a reduced VAT rate of 5% on the construction sector for 2 years (vs 27%).