Investors come, see and ...
18 August 2011
In the first semester of 2011 in the Hungarian property market the total volume of transactions in transparent investment was around 283 million euros. As Hungary becomes more and more attrative to potential investors, by the end of the year the total investment volume can reach up to 600 million euros by the estimation of Colliers International .
Generally, the foreign interest for Hungarian real estates keeps growing, but the potential buyers still just look around and consider the market entry well, so this activity has not appeared in the form of specific transactions yet. However, some new foreign players has also appeared. Hungary becomes increasingly interesting for investors because the current yield level and low rental fees forecast a potential increase in the coming years, when a reduction in vacancy and parallelly a rise in rental fees are expected. Another positive sign is the reduction in the gap between vendor and customer expectations, what also assumes that more transactions will be executed in the upcoming future.
However, it still remains difficult to obtain financing for investments which is the key of transactions. Banks are only willing to provide credit for a proved product, so it also indirectly determines the demand.
Recently yields have not been changed significantly and rapid improvement is not expected either. Investors are still interested in high quality or long-term lease real estates such as ’A' category modern offices, high-quality retail centers or industrial properties. Sustainability and green certificate also become indispensable.
Source: Resource Info
