Cresco Group’s latest development in Bratislava, UNIQ Staromestská has received its final inspection certificate. The building consists of three underground and seven above-ground floors. It offers 7,656 sqm of office space, complemented with retail facilities and storage areas covering 917 sqm. 

According to CBRE, it is very likely that business deals in the Hungarian investment property market in 2017 will reach last year’s €1.54 billion (HUF480 billion) turnover.

CBRE sees continuing strong demand from investors in the Czech Republic across the core sectors of office, retail and industrial with an increased demand for more specialist sectors such as hotels and residential. The retail sector in Q1 clearly dominated with more than €900 million transacted, followed by the office sector with a 20% share of total market volume.

The Váci Road office corridor, the central business district (CBD) and the inner quarters of Pest are the most significant office locations in Budapest. The Budapest office of CBRE has synchronized its office market database with the metro lines and stations to highlight the current status of the city’s office market.

Berlin-based developer Bischoff & Compagnons is to start a new office development, named Alphagon, in the South Buda area of Budapest. CBRE has been commissioned with the leasing of the property.

In Q1 2017, industrial space totalling 162,400 sqm was completed within 10 industrial parks across the Czech Republic, bringing the total stock of modern industrial and logistics space to 6.47 million sqm. The Industrial Research Forum announced its preliminary industrial market figures for Q1 2017.

In 2017, following its international assessment, CBRE has created a survey among real estate investors in Hungary asking them about their market expectations. At the CBRE Investment Breakfast investors turned out to be optimistic about the future. 43% of the respondents stated that the investment market might grow even by one-fifth from last year’s €1.5 billion and 23% stated that this year they might reach their highest turnover ever.

The current forecast for total construction volumes in Hungary shows increases of 8% and 12% for 2017 and 2018, respectively. The barriers for the realization of the developments are the rise of construction costs and the lack of skilled labour force. CBRE expects that these issues raise risks of delivery delays and decrease of developers’ profit margins.

London has been ranked as the most attractive European city for real estate investment for the sixth consecutive year, according to CBRE’s annual Investor Intentions Survey being launched at MIPIM 2017. At 6th place Warsaw is the most attractive CEE city among investors. Prague placed 8th, with Budapest (10th) and Bucharest (14th) also making in the top 15. 

Vienna-based investment manager GalCap Europe has acquired Merkúr Palota (the Mercure Palace), a fully renovated office building in Budapest. The seller is a private investor; both parties agreed not to disclose the purchase price.