Friday, 22 August 2025
In a Q&A interview with CIJ EUROPE, Mátyás Gereben, Country Manager at CPI Hungary, shared insights into the company’s current market position, strategic focus areas, and future plans amid a challenging economic climate.
CPI Hungary remains one of the leading real estate owners and asset management firms in Hungary, managing a portfolio valued at over €1.3 billion and comprising approximately 650,000 sqm of gross leasable area across office, retail, and hotel segments. Gereben emphasised that the company’s efforts are balanced across these asset classes, with a strong emphasis on forging deeper partnerships with tenants. Instead of maintaining a traditional landlord-tenant relationship, CPI Hungary aims to understand and align with tenants’ needs, creating mutual benefits and longer-term stability.
Addressing shifting market dynamics, particularly in the office and retail sectors, Gereben highlighted CPI’s proactive approach to environmental, social, and governance (ESG) goals and evolving workplace trends. CPI Hungary has long positioned itself as an environmentally conscious player in the market. The company has implemented various initiatives to enhance its ESG performance, including 360-degree selective waste management, consumer-side electricity optimisation, adaptive building management systems, a 100% LED lighting programme, and the expansion of green spaces. Notably, nearly 70 percent of CPI’s office tenants have signed green leases, reflecting a shared commitment to sustainability and collaborative thinking for long-term success.
Economic and regulatory changes in Hungary have presented significant challenges for the real estate sector. Gereben noted that Hungary currently faces the highest economic and political risk levels in the Central and Eastern European region, which has implications not only for investments and development decisions but for the broader business environment. The relocation of approximately 500,000 sqm of government institutions from commercial office space into state-owned properties has contributed to increased vacancy in the office sector, complicating new development prospects. Despite these challenges, CPI Hungary maintains a cautiously optimistic outlook, seeking opportunities where long-term business cases remain viable. Recently, the company completed a comprehensive refurbishment of a downtown hotel and is preparing to commence development of a retail park in north-eastern Hungary in the coming weeks.
Looking at future initiatives, Gereben confirmed that CPI is actively working on repositioning parts of its portfolio in response to current market demands. This strategy includes converting some Class B office buildings into hotels or residential units, reflecting a flexible approach to asset management and market realities.
Over the next 12 to 18 months, CPI Hungary’s priorities will centre on tenant retention, portfolio optimisation, and sustainable capital expenditure. The company has established the CPI Club, an initiative designed to enhance tenant relationships and provide complex services tailored to tenants’ evolving needs. In addition, CPI remains focused on generating long-term value through smart and sustainable investment strategies, while also considering the repositioning or disposal of non-core assets to refine its portfolio and strengthen its market position.
Through this combination of adaptability, tenant-centric management, and sustainable investment, CPI Hungary is positioning itself to navigate both the immediate challenges and future opportunities within Hungary’s real estate market.
Source: CIJ EUROPE
