Budapest has the oldest modern retail property stock among major Central and Eastern European markets, with 84% of its shopping centre and retail space more than 15 years old, according to Colliers’ ExCEEding Borders Retail 2026 report, cited by BBJ.
The Hungarian capital’s ageing retail infrastructure contrasts with Warsaw, where 70% of modern retail stock is more than 15 years old. Only 4% of Budapest’s modern retail space was completed within the past five years, reflecting a prolonged slowdown in new development.
Colliers attributes the limited expansion to Hungary’s shopping centre development restrictions, commonly known as the Plaza Stop regulation, alongside higher financing costs, construction inflation and regulatory uncertainty.
Hungary expects 64,000 sqm of new retail space in 2026
According to CBRE, retail property completions in Hungary are expected to reach approximately 64,000 sqm in 2026, while another 19,000 sqm is under construction and scheduled for completion in 2027. A further 157,000 sqm of retail space is in preparation, although delivery dates remain uncertain.
Development activity is increasingly concentrated in retail parks, which generally require smaller investments than traditional shopping centres and can accommodate retailers seeking flexible store sizes.
Westend completes €10 million modernisation programme
One of Budapest’s largest established retail destinations, Westend Shopping Center, has undergone a €10 million investment programme led by its owner, GránitPólus Group.
The project includes a 6,500 sqm rooftop solar installation, upgraded heating and cooling infrastructure and an AI-based building management system designed to optimise energy consumption.
The shopping centre has achieved an A+ energy rating, while the adjacent Crowne Plaza Hotel and Westend Office Building have received A ratings. Westend is also targeting BREEAM In-Use Excellent and Outstanding certifications in 2026.
Zone retail park network expands in Budakeszi
Gránit Asset Management is developing a 4,290 sqm extension to the Zone retail park in Budakeszi, west of Budapest, with completion scheduled for the fourth quarter of 2027.
The project represents the first new-build development under the Zone brand since the integration of its nationwide portfolio earlier this year. Owned by the Magyar Posta Takarék Real Estate Investment Fund, the Zone network currently operates across 20 locations in 19 Hungarian cities.
Elsewhere in Hungary, CEE property investor and developer TriGranit and DRFG Investment Group have acquired the 18,000 sqm Korzó Shopping Center in Nyíregyháza, one of eastern Hungary’s established retail destinations.
Retail landlords shift towards leisure and services
Property consultants expect changing consumer behaviour to accelerate investment in entertainment, restaurants, services and other experience-oriented uses. CBRE identifies Generation Z and Generation Alpha as important drivers of demand for shopping destinations that combine retail with leisure and social activities.
Across Central and Eastern Europe, Cushman & Wakefield expects retail parks to remain the dominant format for new retail development, supported by their accessibility, smaller scale and focus on everyday consumer spending.
