Optimistic Mood in the Hungarian Commercial Real Estate Market

Hungary emerged as an extremely optimistic country in the region based on the latest results of the retail market mood index. 

The research of The Royal Institution of Chartered Surveyors (RICS) compares the mood of commercial real estate market in various countries, taking into account both the lending and investment sides, and ranks the market atmosphere of the countries based on the results achieved by a cumulative index. Based on the latest results, the most confident atmosphere reigns in Hungary.

Emerging Investor Market

This result is clearly reflected in the fact that Hungary has the region's most dynamically growing investor market. Hungary's result was similar to that of the Czech Republic: both countries gained +46 points in the first quarter of 2017 and Hungary scored only +3 points higher in the second quarter. Within the investor market, the office market grew the most, which growth, according to experts, is expected to remain for about two years. As regards the post-2019 period, the future is uncertain.

What about the Tenants?

The tenant market is skyrocketing too: tenant mood index remained good in the second quarter of this year (+43). Although the first quarter of this year was stronger with its +59 results, even this result surpasses the current dominant mood in the rest of the region. Over the past four years, tenant activity has increased steadily in the office, commercial and industrial sectors as well. However, it is also true that the biggest growth in the last quarter occurred in the office market.

Priorities for Investors

While considering developments, investors are paying particular attention to the building of sustainable, environmentally conscious, cost-effective buildings. In fact, one can successfully increase the value of the property if it has a green certificate. The optimistic mood may drop due to the region-wide problem of employee shortage, but 95% of respondents in the survey conducted by RICS continue to believe that this does not adversely affect the interest of new investors in the market.

Source:http://www.portfolio.hu/ingatlan/iroda/magyarorszag_mindenkit_maga_moge_utasitott.261571.html