Budapest Offices


What boosts the real estate market besides CSOK?

Feb 15th, 2016

2015 was a great year for the Hungarian real estate market, all segments showed growth and everyone is looking forward to 2016 too. The growth is driven by multiple factors and even those sectors show signs of revival which have been weak ever since the financial crisis.

Portfolio asked experts about what can be expected on the Hungarian real estate market in 2016. Láránt Kibédia Varga, CEO of CBRE and Gábor Borbély MRICS, leading analyst of CBRE said that overall they are positive about 2016. The economy is on a stable and predictable path, households are more willing to spend on buying estates and even renovating them and investors are drawn in great numbers to the market.

The role of investors is especially important as several international firms entered the market in 2015 and more are expected to do so in this year. American assets are flowing to Hungary and analysts say the interest in the market is growing as once the proper teams could establish a presence in Hungary it is easier for the other to enter the market.

Developments are likely to gain momentum as well. The volume of office developments for example was only a small fraction of what we could see before 2009.

The experts also talked about the increasing role of the Hungarian National Bank (MNB) as they player a significant role as investors in past years. One of the largest transactions of 2014 for example was the purchasing of the Eiffel Palace office building by the bank. Analysts say it is not uncommon for the state or national banks to invest in the market and there is an existing strategy of buying valuable estates for investment purposes by the MNB.




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