Tourists and immigrants revitalise Budapest’s iconic region as 1/5th of shops change

Budapest’s iconic Nagykörút has seen significant revitalisation, driven by tourists and immigrant entrepreneurs, with one-fifth of its shops changing within a year. Food and drink establishments have become dominant, while Asian and Middle Eastern eateries are increasingly popular. Despite some positive trends, challenges remain, including poor infrastructure and a rise in homelessness.

Two years ago, a survey by G7 of Budapest’s Nagykörút revealed that 129 out of 662 retail spaces were vacant, indicating significant economic challenges. By November last year, the situation slightly improved, with the number of businesses rising to 673 and vacant stores reducing to 100. Recent observations show continued recovery, as the number of shops increased to 678, with only 75 vacant premises remaining.

Eateries surpassed vacant properties

Nagykörút. Photo: Wikimedia Commons/Rovibroni (Barna Rovács)

The Nagykörút’s profile remains dominated by food and drink establishments, despite issues like noise, lack of cleanliness, and limited green spaces. The section bordering the city’s famed ruin pubs leads in nightlife, heavily focusing on gastronomic venues. Notably, this year saw eateries surpass vacant properties in number, showing the significant influence of restaurants and food-related businesses in the area. Local food stores often act as informal substitutes for bars or restaurants.

Asian and Middle Eastern restaurants have notably grown, with an influx of businesses run by immigrant entrepreneurs, especially serving Indian and Vietnamese cuisine, G7 reports. Currency exchange offices, catering to tourists, remain stable, while niche shops selling snacks or specialising in specific items like chips and local lángos are increasing. On the other hand, shops meeting local needs—electronics, clothing stores, banks, bakeries, and opticians—have stagnated or slightly declined.

Instability seen among businesses

Hair salons have seen a marked increase, often operated by foreign barbers, resulting in a greater number of hair-cutting locations than bakeries. In total, nearly 120 out of 678 retail units have changed over the past year, signalling instability among businesses. The Nagykörút has also shown economic division: shops between Oktogon and Jászai Mari Square are more stable compared to the section extending toward Boráros Square, where changes are nearly three times more frequent.

Despite these commercial developments, the general conditions of the Nagykörút remain problematic. Sidewalks have not improved, and there is a noticeable increase in homelessness and people collecting recyclable bottles. Defunct phone booths, repurposed as makeshift restrooms, still dot the landscape.

While the backless bench featured in a previous report of G7 is gone and has been replaced entirely, new street furniture attempts to improve the public experience. Additionally, the Budapest Transport Centre (BKK) has applied for EU funding under the TOP Plusz program to build a new bike lane. If approved, the HUF 4.5 billion (EUR 11 million) project could begin in 2025, with completion optimistically expected by summer 2028. This bike lane could potentially revamp the area, making it more appealing commercially by enhancing pedestrian zones and overall infrastructure.

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