ARTICLES LABELLED WITH TAG Hungary

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.

CPI Property Group announced that its subsidiaries have acquired a retail portfolio with the value of approx. €650 million consisting of predominantly 11 shopping centres located in the Czech Republic, Hungary, Poland and Romania with a total leasable area of approximately 265,000 sqm from two funds managed by CBRE Global Investors. The closing of the deal was completed on 29 March, 2017. 

Obtaining a green certificate for modern office buildings has become a must in recent years. Still, developers, operators and tenants don’t fully realise what does a certification actually stand for and what kind of effect green solutions actually have on operating costs and productivity. The latest Green Talk, co-organised by RICS and HuGBC, focused on green buildings in Hungary. 

Resilient European economies, the continued popularity of Mediterranean leisure destinations and Europe’s importance for business travellers, should drive hotel occupancy and revenues in 2017, according to the latest PwC European Cities Hotel Forecast. Most European cities, including Budapest and Prague, are expected to see additional revenue growth in 2018.

Diófa Asset Management has purchased the South Pest Business Park from Wing Zrt. The new owner is Magyar Posta Takarék Property Investment Fund, which is Hungary's second largest domestic open-ended fund. The city logistics scheme, located in the 9th district, is 90% occupied.  The South Pest Business Park was transacted for app. €29.1 million (HUF9 billion).

Budapest was among the 50+ cities that showcased its strengths and potential to real estate professionals at MIPIM 2017 with an emphasis on new developments and investment opportunities. Two panel discussions were held during the first two days of the event, both of them moderated by Portfolio Property Forum, the media partner of the Budapest stand. Here are some takeaways from the first two days in Cannes. 

Futureal Group signed a credit agreement of €45.1 million with Erste Bank Hungary Zrt. in order to finance the realisation of the Corvin 5 office building. The first phase of the building is expected to be handed over at the end of 2018. 

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.

HB Reavis has gained planning consent for its next new major development, Agora Budapest, situated next to city’s busiest boulevard and the Váci Road office corridor. Construction on the first building called Agora Hub has already commenced. Agora Budapest will be built in several phases and will comprise more than 136,000 sqm of modern office spaces and retail units by 2023. The project will require an investment of approximately HUF140 billion (€447 million).