ARTICLES LABELLED WITH TAG Hungary

Immofinanz is continuing the expansion of its successful Stop Shop retail park portfolio with the acquisition of eight locations in Slovakia and Hungary. The purchase price for these properties totals approx. €79.0 million. The newly acquired retail parks have an occupancy rate of roughly 98% and generate annual rental income of approx. €6.6 million. The transactions will close in several steps, presumably by the end of the first quarter of 2017. Immofinanz‘s Stop Shop portfolio will then cover 66 locations in seven countries with roughly 449,000 sqm of rentable space and a book value of more than EUR 600.0 million. Further locations in Serbia and Poland are currently in the preparation phase for project development. 

General optimism, attractive investment opportunities and more capital characterises the Central and Eastern European property market that is now considered a favourable investment destination by international investors. The second Emerging Europe Property Forum, co-organised by Portfolio Property Forum and RICS, took place on 8 November at the RICS HQ in London. 

According to Cushman & Wakefield, commercial real estate investment activity in the core Central European markets of Poland, the Czech Republic, Slovakia, Hungary and Romania reached €6.05 billion in the first three quarters of 2016, a 37% increase y-o-y, albeit with reduced activity during the third quarter. Investment in the CE region slipped back following a strong second quarter. The volume of assets traded totalled €1.4bn in Q3 2016, down over 20% a year ago and half Q2 volumes.

In the middle of August, the whole world was once again in Olympic fever, as Rio hosted the 31st Summer Olympic Games. The event bears significance for Hungary, beyond the achievements of its athletes, because Budapest is one of the cities which has applied to host the 2024 Summer Olympics.

CBRE Hungary continued its expansion in 2016: the project management team has expanded to five members, and the work of the retail real estate unit is supported by a new senior professional. The team responsible for capital market operations is also completing significant orders, so this area has also increased the number of staff in 2016. The industrial property experts, in turn, have set a record with the market share of CBRE.

As the term of three board members ended, RICS has presented its new board in Hungary. Further strengthened by strong professional and business skills, the new board represents an interesting mix of areas covered. 

The Budapest commercial property market has seen a real turnaround over the past two years. Demand is evidently strong for quality office and logistic space in many parts of the Hungarian capital, including its airport. Budapest Airport has an area larger than London Heathrow and ambitious long-term plans that aim to attract a wide range of companies, including cargo and logistics operators. René Droese and Réka Sebestyén, responsible for the property business of BUD, talked to us about the airport’s development plans.  

V17, a new office building located at the beginning of the Váci corridor in Budapest has officially opened. The seven-storey sustainable building offers nearly 13,000 square meters Class A office space, most of which is let to E.ON Hungary Zrt. for long term. V17 is owned by Torony Ingatlan Befektetési Alap represented by Diófa Alapkezelő Zrt., and was developed by Hungarian commercial real estate developer WING Zrt. Building V17 required a HUF10 billion investment.

Today one quarter of modern office buildings in Budapest have a sustainability evaluation certification, and even among the older office buildings a growing number apply new technologies. Almost all new real estate entrants offer architectural and environmental management solutions to their future tenant, says a report by CBRE.

Horizon Development has laid the cornerstone for its new office project. Promenade Gardens, located on Budapest’s Váci Road, is expected to be completed in Q4 2017.