Modest decline in Hungary's warehouse and industrial real estate construction
Published quarterly, the EBI Construction Activity Report creates aggregates from project data for 18 segments by object type (multi-unit residential, 9 non-residential segments and 8 civil engineering segments). The authors are ibuild.info (project research and project database), ELTINGA and Buildecon (creation of indicators and development of algorithms for aggregation).
Thus, developers’ momentum somewhat decreased, especially by Q3, when construction works started on just HUF 44 bn (the lowest amount since 2014). Started projects comprised ULL5 and ULL6 warehouse buildings in Üllő and Zoltek Toray battery cell separator film production plant in Nyergesújfalu.
Total value of warehouse and industrial real estate projects completed this year is still below the record 2018 level; the Activity Completion indicator has been HUF 190 bn. Q3 2019 saw the completion of REHAU-Automotive car parts manufacturing plant in Újhartyán, and the Opera House and the Eiffel Hall of Erkel Theatre in Budapest.
Several projects are expected to be completed for the remainder of the year and 2019 could break last year's record in terms of the value of completed warehouse and industrial real estates. For example, this year may see the completion of Phase II of Mercedes-Benz K2 OF lacquering plant in Kecskemét, Phases II and III of Samsung Lithium Battery Manufacturing Plant in Göd-Felsőgöd, Phase I of SK Innovation Battery Factory in Komárom, and the SRF BOPET film production and metal coating plant in Jászfényszaru.
Cover photo by Getty Images
