According to the head of Panattoni Hungary, demand for high-spec warehouse spaces related to manufacturing will increase next year. We also discussed rural locations, the driving forces of the market, and the past two years.
Panattoni is one of the top three warehouse developers in several countries. Is this also the goal in Hungary?
Panattoni’s primary goal is to become a reliable, recognized partner in Hungary for logistics/industrial property users who are looking for either a new location or expansion opportunities for their companies. At Panattoni, it is crucial to design and build our properties in the most modern and environmentally conscious way. Our motto, “Go Earthwise with Panattoni,” is a project and goal that redefines the approach to investments, taking into account the environment, employees, and local communities. Regulations and local market demands differ from country to country, so our main objective is to elevate all our developments to a consistent standard and to create a new approach throughout Europe. As long as we enjoy the trust of our clients, financiers, and investor partners, what else could be our goal but to strive for a leading role in Hungary as well?
What are the key trends in the industrial real estate market?
The Hungarian industrial real estate market is receiving increased attention from both foreign investors active in the region and domestic investors, particularly regarding investments related to the automotive industry and battery manufacturing. Industrial real estate has become a popular and sought-after investment product, with growing interest from domestic investors. Financing is also available for good projects, and we are having encouraging discussions with local banks about our planned developments, even in the current economic environment. Demand for industrial real estate slightly decreased in the second half of 2023, while supply remained relatively stable, resulting in increased vacancy rates. Due to this, rental prices are expected to moderate in 2024, but there is likely to be higher demand for areas with advanced technical specifications related to manufacturing.
How was this year for you, and what are your plans for next year?
It has been an eventful year. We completed our first development in Törökbálint, the Panattoni City Dock Törökbálint logistics park. We launched two BTS developments in the countryside, and several speculative developments are in preparation and ready to go. Moreover, in recent weeks, we concluded significant negotiations, resulting in an order from a national retail chain to build a 32,000 square meter built-to-suit logistics center in the Budapest metropolitan area. So, we can say that Panattoni Hungary, just two years after entering the Hungarian market, is present with significant BTS and speculative development volume.
The office market seems to be slowing down, while warehouse developers are not complaining. How much potential is left in the sector?
Based on incoming inquiries and discussions with our international colleagues, it is clear that there is increasing demand for specially designed buildings with advanced technical specifications, whose rental rates often differ significantly from standard warehouses. The expectations regarding “standard warehouses” are evolving. We believe that in the coming years, demand in Hungary will be driven by larger, nationally significant investments.
Is there life outside the M0 ring road?
We can definitely say yes! Panattoni is currently developing in Debrecen and Kecskemét, and we continue to receive inquiries regarding several regional locations. Preferred locations are those near or close to major investments and easily accessible via Hungary’s road network. Such investments have led to the development of stable secondary markets, such as Győr, Komárom, Tatabánya, Kecskemét, and currently the largest “hot market,” Debrecen. At Panattoni, we are exploring specific development opportunities in several regional locations, and our goal is to realize as many of them as possible. (Raktarkereso.info)
Kemenes, L. (2023, december 14.). Mozgalmas évünk volt. Raktárkereső. https://www.raktarkereso.info/cikkek/interjuk/kemenes-laszlo-mozgalmas-evunk-volt
