Lawyer's addressLövőház utca 20/A.
1024 Budapest Hungary

Attorney's phone number Tel.: +36 1 316 9233
Law office's fax number Fax.: +36 1 336 0107
Attorney's office e-mail

Property market: downturn already at 60 per cent in Hungary, 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.