Property market: downturn already at 60 per cent in Hungary
napi.hu, 17. August 2018 – Property investment transactions worth approximately EUR 320 million were closed in Hungary by the middle of the year, a 60 per cent reduction from the same period of the previous year. At the same time the favourable financing environment and sufficient liquidity may keep demand steady in the market of investment purpose properties. The annual investment value in 2018 may be close to previous year’s EUR 1.75 billion but closure of some high-value transactions may be delayed until 2019. Demand for retail outlets has grown significantly in the first half of 2018. The reduction of return on invested capital stopped in the first six months of 2018, the only exception being the premium retail sector. ROI in office and industrial/logistics properties is 6 and 7.7 per cent, respectively. ROI for retail outlets has sunk to 5.8 per cent. Analysts predict a slight reduction of returns. As far as sectoral distribution is concerned, a further increase of the share of retail outlets is expected and – on account of the Category ‘A’ office premises completed – the number of transactions in the office sector is also likely to increase.
Budapest residential property market may slow down
Napi.hu, 30 July 2018 – In the first half of 2018 there were 6517 apartments built in Hungary, 30 per cent more than in the same period of the previous year. The number of residential units under planning was 18,066, 8.9 per cent less than in the first half of 2017. The number of planning approvals issued in Budapest decreased by 27 per cent. 50-50 per cent of residential properties are still built by private persons and companies, respectively.
54 per cent of apartments created in a new building are located in houses, 36 per cent in condominiums and 6.2 per cent in gated residential communities.
The average floor space of apartments is 101 square metres, an increase of 5 square metres from the previous year. The number of apartments planned reduced by 27 and 3.5 per cent in Budapest and in county centres, respectively, and increased (by 17 per cent) in other towns and cities only.