Budapest: Danube City
Hungary has been the hardest-hit economy in the CEE region in 2012, with GDP falling by more than 1% in the first two quarters of the year. Yet real estate activity in the capital Budapest has held broadly firm, with the retail market exceeding expectations in terms of both retailer demand and turnover.
Among the biggest retail developments is the “new city centre” development at Etele Square. The 700,000 m2 site will host a multi-level retail and leisure complex linked to a new metro line, an overland railway station and a bus terminal. The centre has been designed to serve as the cornerstone of the entire area’s revitalisation.
Budapest is also an important city for the logistics sector, thanks to its location at the intersection of several pan-European corridors. The city remains a major river port thanks to its location on the River Danube, a waterway linking 19 countries and 81 million people.
The biggest logistics development underway is the EUR 100 mln Danube Intermodal Logistic Center (DILC), in the south of the city. On a true intermodal location along the pan-European M6 motorway, the project promises to offer exceptional advantages to service large scale European logistics due to the possibility of building a river port, a rail and container terminal on the Danube.
Key business sectors in the city include mining, metallurgy, construction and automotive manufacture. Budapest is also a popular destination for conferences and cultural tourism.