According to the latest study by the Equilibrium Institute, smart upgrades of Hungarian public buildings could generate annual savings in the magnitude of HUF 100 billion. In our analysis, we demonstrate how proptech solutions can become the driving force behind the public sector’s energy efficiency revolution.

Until now, the Hungarian proptech ecosystem has primarily focused on the commercial real estate market and residential properties, while a vast segment of 24,000 buildings has remained outside digital transformation: the world of public institutions. However, the Equilibrium Institute’s December study highlights that this “white spot” hides not only an enormous business opportunity, but also savings potential of national economic significance.

The Scale of the Problem: 50 Million Square Metres of Obsolete Building Stock

In Hungary, there are approximately 24,000 public buildings larger than 250 m² (municipal and state-owned), with a total heated floor area of around 50 million m². Their average energy consumption is 214 kWh/m²/year — which, for comparison, is equivalent to the average specific energy consumption of Hungarian residential buildings (205–225 kWh/m²/year).

The most painful point: there is no unified, public database about these buildings. We do not know exactly how many public buildings exist, what their energy performance is, how much they consume, and where the greatest inefficiencies occur. This digital blind spot makes data-driven decision-making and effective governmental programme planning impossible.

Why Is This Urgent Now?

Following the 2022 energy price shock, it became clear that municipalities and state institutions are financially extremely exposed to fluctuations in energy prices. From one day to the next, they had to move from protected consumer status into a new system operating with differentiated tariffs and market prices.

In addition, EU energy efficiency targets are exerting pressure: Member States must renovate at least 3% of larger public buildings annually and reduce public sector energy consumption by at least 1.9% each year.

The Proptech Solution: Energy Management Software and Building Automation

The Equilibrium Institute study identified three rapidly implementable proptech solutions that do not require structural intervention, yet can result in 20–35% energy savings.

1. Energy Management Software: Eliminating Invisible Waste

The first step is always data collection and analysis. Energy management platforms (such as Panda Energy Management or similar domestic and international solutions) enable:

• Automatic data synchronisation with utility remote meter readings

• Real-time monitoring of quarter-hourly electricity consumption and hourly gas consumption

• Identification of out-of-hours consumption — detecting night-time, weekend and holiday waste

Savings: In the case of municipal consumption points, average energy and cost savings of 20–25% can be achieved by optimising out-of-hours consumption. On average, 25% for electricity and 20% for natural gas.

Cost vs. Benefit: The annual fee of an energy management software equals approximately 1% of annual energy costs, while generating potential savings of 20–25%. The payback period is typically only a few months.

2. Contracted Capacity Optimisation: Administrative Low-Hanging Fruit

Contracted electricity and gas capacity refers to the maximum energy demand specified in contracts, on which the utility calculates the monthly base fee. If this capacity is higher than actual needs, it unnecessarily increases costs.

Following analysis of digital consumption data, municipalities can review their contracts annually and adjust contracted capacity to real demand.

Savings: On average 1.5–2% annual cost savings, without investment, purely through administrative measures.

3. Building Automation: The Truly Smart Building

The most sophisticated solution is full building automation: installation of sensors, creation of zone control, and implementation of a central Building Management System (BMS).

What does building automation enable?

• Zoned heating and cooling: each room receives its own temperature and schedule

• CO₂ concentration and presence detection: ventilation operates only when necessary

• Lighting and shading control: automatic adaptation to light intensity and solar radiation

• Remote access and data analysis: operators can see consumption patterns in real time

• Predictive maintenance: identifying where physical renovation is require

Savings: Through automation, sensor installation and zoning, energy consumption can be reduced by 15–35%.

Cost and Payback: Typical cost per building ranges between HUF 5–25 million, with payback between 3–6 years. Implementation can be completed within 2–12 months without structural intervention.

Real-World Examples

The Equilibrium Institute study presents three anonymised case studies:

Urban school (2,500 m²)
Investment: Heating control and scheduling, HUF 7.2 million
Result: -22% heating energy, HUF 3.1 million/year savings
Implementation: 6 weeks
Payback: 2.3 years

Municipal office (1,800 m²)
Investment: Lighting and shading automation, HUF 5.8 million
Result: -28% electricity, HUF 2.4 million/year savings
Implementation: 2 months
Payback: 2.4 years

Urban swimming pool (4,200 m²)
Investment: Humidity control and BMS integration, HUF 14.5 million
Result: -18% gas, -12% electricity, HUF 6.5 million/year savings
Implementation: 4 months
Payback: 2.2 years

These case studies demonstrate extremely short payback periods (2–3 years), making such projects particularly attractive for municipalities.

The Market Opportunity: HUF 100 Billion Per Year

According to the conservative estimate of the Equilibrium Institute — even calculated with the discounted residential tariff of HUF 35/kWh — smart upgrades of Hungarian public buildings could generate annual savings in the magnitude of HUF 100 billion for the central budget and municipalities.

This figure would naturally be higher if actual procurement or market energy prices were considered, which significantly exceed the residential discounted tariff.

What Does This Mean for the Proptech Ecosystem?

• 24,000 potential client buildings in an immediately addressable market

• 50 million m² awaiting digitalisation

• HUF 5–25 million per building investment volume = total market size of HUF 120–600 billion

• 2–6 year payback = favourable investment profile for municipalities

• Stable, long-term contracts = predictable revenue streams for service providers

Challenges and Barriers

1. Lack of Data and Transparency

The biggest problem is the absence of a unified, public database of Hungarian public buildings. The Energy Performance Cadastre of State Public Institutions (ÁKÉK) was promised for October 2025, yet by November it was still unavailable.

Solution: Proptech companies should collaborate with municipalities in conducting individual assessments, which could later form a national database.

2. Financing Difficulties

Many smaller municipalities lack liquid resources for HUF 5–25 million investments, even with 2–3 year payback.

Solution: Targeted state subsidy schemes, ESCO (Energy Service Company) models, or green bank loans.

3. Lack of Expertise and Knowledge

Municipal operators often lack energy expertise and are unfamiliar with modern proptech solutions.

Solution: Educational programmes, training modules, best practice sharing — active knowledge transfer by proptech companies.

What Can Proptech Companies Do?

1. Focus on the Public Building Market

Beyond commercial real estate, public buildings represent a vast underserved segment. Dedicated products and service packages should be developed specifically for municipalities and state institutions.

2. Simplify Decision-Making

Provide free energy audits and quick calculators enabling municipalities to instantly see savings potential in their buildings.

3. Share Success Stories

Sharing best practices accelerates adoption. If a municipality sees a successful neighbouring project, it is much more likely to initiate one itself.

4. Develop ESCO Models

Create financing structures where the proptech company pre-finances the investment and repayment occurs from the savings — allowing projects to start with zero initial capital requirement.

Proptech Hungary Conference 2026

All these trends, innovations and challenges converge at the 7th Proptech Hungary Conference, taking place on May 14, 2026 in Budapest.

Why You Should Not Miss It

✅ 50+ international and domestic speakers – innovative leaders and global experts
✅ 250+ participants – Developers, investors, innovation leaders, startups
✅ AI Networking Zone – Hands-on AI experience, test it yourself and build your own model
✅ Startup Pitch Arena – Live pitches from the most promising proptech startups
✅ Innovation Playground – Interactive exhibition: digital solutions, smart technologies

Topics and Sections

• Smart Building & IoT – Latest building automation trends (residential, office, retail, logistics)

• AI & Data Analytics – Artificial intelligence in real estate

• PropTech Startup Ecosystem – Innovation competition, pitch sessions

• ESG & Sustainability – Sustainability reporting, green buildings

• BIM & Contech – Digital design and construction optimisation

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🎟️ Early Bird tickets are now available
📍 Venue: Budapest Music Center
📅 Date: May 14, 2026

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