ARTICLES LABELLED WITH TAG Hungary

The CEO of TriGranit is still optimistic for 2017 on the Budapest property market, but he expects some kind of correction in the coming years. The question is: will this correction take place in the form of a market stabilisation or will it bring on a significant downturn? Árpád Török talked to Property Forum about TriGranit’s plans for new developments and acquisitions.

The office markets of Central European capitals are growing dynamically: the number of new leases is on the rise, vacancy rates have hit record lows in several cities and demand for large office space is also growing. In light of all this it is no surprise that development activity is also heating up on the most popular markets of the region. We asked three major office developers to tell us which city in the region offers the most attractive development opportunities, how tenants’ requirements are changing and what makes Central European capitals different.

Atenor has acquired 19,000 sqm of land on Hungária körút, one of the main road corridors in Budapest. The site provides an opportunity to build a campus of 4 office buildings with commercial spaces covering approximately 85,500 sqm, which will be developed in different phases. Permit application for the first building is set to be submitted by the end of the year, allowing construction to begin in 2018.

Occupier and investment sentiment remains positive across all Central and Eastern European countries tracked by the RICS Commercial Property Monitor. Results for Q2 2017 show that Hungary and the Czech Republic continue to post the strongest overall results. The vast majority of respondents expect new investors to enter the market with the presence of local and CEE investors predicted to increase across the region in the year ahead.

Hungarian developer and investor Wing has purchased the Európa Center Business and Logistic Park, located in the northernmost part of Budapest, next to the M0 ring road. Wing plans to further develop the park which has been renamed Login Business Park.

Investment volumes in Central and Eastern Europe (Poland, Slovakia, Hungary, Czech Republic, Russia and Turkey) reached €7 billion in H1 2017. This is 6% less than in the same period of the previous year.

The industrial real estate market in Hungary hit the vacancy rate of 5.5% in the first half of 2017, which is the lowest number on record since it has been measured by the Budapest Research Forum (BRF). In total, less than 73,000 sqm space is currently vacant in the Budapest metropolitan area of the 1.95 million sqm total modern logistics area, and only four Class A buildings can offer more than 5,000 sqm contiguous warehouse space. The lack of available space is due to the strong absorption of the last few years, and at the same time there are still limited number of speculative projects in progress or have building permits, says Tamás Beck, Director of Industrial Agency at Colliers International Hungary.

The first half of 2017 saw the Czech Republic overtake Poland as the most popular investment destination within CEE. Based on the current pipeline of deals Poland might retake its position rather soon, nevertheless, the combination of growth, yields and stability make Czech Republic and other countries in the CEE region highly attractive to international and domestic investors. Luke Dawson, Managing Director & Head of Capital Markets CEE at Colliers International shared his expectations with Property Forum.

Europa Capital has concluded the sale of a portfolio comprising two city centre office buildings in Budapest with a total floor area of approximately 26,000 sqm. KGAL, a European asset and investment manager, acquired the Kálvin Square and CityZen assets on behalf of institutional investors. The combined price for the portfolio is approximately €60 million. The property management will be carried out by KGAL´s local partner ConvergenCE. 

An international investment consortium comprising Wing, Morgan Stanley Real Estate Investing and CC Real has sold the West End Business Center office building in Budapest to OTP Property Investment Fund.