In Hungary, the vast majority of greenfield investments are concentrated in the battery and automotive industries.
What Is a Greenfield Investment?
A greenfield investment refers to a project that involves building an entirely new facility on previously undeveloped land. Unlike brownfield investments, which expand or modify existing infrastructure, greenfield projects start from scratch—constructing new manufacturing plants, warehouses, logistics hubs, or any production or service facility. These developments require significant capital, have long-term horizons, and bring substantial economic and social impact by creating jobs, developing infrastructure, increasing local tax revenues, and reshaping the structure of Hungary’s manufacturing sector.
Where Is Investment in Hungary Most Active?
Between 2020 and 2025, 64 companies announced greenfield investments in Hungary totaling over €21 billion. Several of these projects are set to begin operations by late 2025 or early 2026.
Pest County (including Budapest) leads in the number of investments, with 19 companies choosing this logistically advantageous region. It's followed by Hajdú-Bihar County with 10 investments and Borsod-Abaúj-Zemplén with 7. The presence or quick development of industrial parks, availability of skilled labor, and both state and EU incentives have made these areas attractive investment destinations.
When measured by value, Hajdú-Bihar County tops the list with €11.4 billion, thanks to major projects from BMW, CATL, and EVE Power. Csongrád-Csanád County ranks second due to BYD’s new manufacturing plant in Szeged, worth over €4.66 billion. Komárom-Esztergom County is third with €3.07 billion from six projects.
While Debrecen, Pest County, and Tatabánya were historically the most attractive targets, Szeged is undergoing rapid industrial transformation due to BYD’s investment, potentially creating a new economic hub in southern Hungary.
Where Is Investor Interest Low?
At the opposite end, Győr-Moson-Sopron, Heves, and Tolna counties show limited investment activity. Long-term labor shortages in Győr-Moson-Sopron deter new investments, as existing companies compete fiercely for workforce. Though Heves and Tolna offer strong logistics, earlier foreign investments established significant capacity before 2020, making them less appealing now.
Some activity has emerged in Baranya County—such as projects by Seiren and Hanon Systems in Pécs—but these remain small in scale. Baranya thus continues to hold untapped potential.
Békés County has also lagged due to poor accessibility. However, the full completion of the M44 expressway between Békéscsaba and Kecskemét now offers direct motorway access to Budapest, potentially revitalizing the region.
Dominant Industries in Greenfield Investment in Hungary
Most greenfield investments in Hungary target the battery sector (21 projects, €13+ billion) and automotive sector (20 projects, €6+ billion). These two alone account for over 90% of total investment value.
In the food industry, four companies have launched projects worth €270 million, including Hungarian firms like Hungerit Zrt. and Biotech USA, along with CJ Foods (South Korea) and Glencore Agriculture (Switzerland).
Largest Greenfield Projects Announced
- CATL (Battery manufacturing, Debrecen) – €7.34 billion
- BYD (Vehicle manufacturing, Szeged) – €4.5 billion
- BMW (EV production and battery assembly, Debrecen) – €2 billion
- Huayou Cobalt (Cathode production, Ács) – €1.3 billion
- EVE Power (Battery manufacturing, Debrecen) – €1 billion
Investment Trends Over Time
Between 2020 and 2022, Hungary averaged 15 greenfield project announcements annually. However, this trend shifted in 2023, with fewer projects announced. Despite maintaining high investment value in 2022 (€11B) and 2023 (€7B), only 7 greenfield investments were reported in 2024, totaling just €300 million.
What Does It All Mean?
Data show that by the end of 2023, Hungary had secured many capital-intensive projects with long-term impact on its manufacturing structure. The automotive industry remains central, and no major diversification is expected soon.
This concentration may drive technological advancement and provide opportunities for local SMEs to integrate into global value chains. However, it also leaves the economy vulnerable to fluctuations in the global auto sector. Resilience could be improved by promoting high value-added services and supporting sectors like healthcare, renewable energy, and food processing.
Moreover, the geographic concentration around Debrecen, Szeged, Tatabánya, and Budapest increases regional inequalities. These overburdened regions face acute labor shortages, raising production costs and fueling wage competition.
In contrast, underutilized regions—Békés, Baranya, Zala, and Szabolcs-Szatmár-Bereg counties—could become attractive alternatives through infrastructure upgrades like expressways and industrial park expansions. These regions not only offer lower labor costs but also play a crucial role in reducing regional disparities.
Available Incentives for Greenfield Investment in Hungary
Hungary offers both non-refundable grants and corporate tax incentives for businesses planning greenfield investments.
In recent years, successful grant applications have been submitted by companies developing high value-added services or operating in advanced industries (e.g., pharmaceuticals, medical tech, biotech), especially in southern Hungary.
Corporate tax benefits are also available, potentially covering up to 60% of investment or new workforce wage costs for large enterprises.
