SPB Projekt & Immobilienmanagement e.K. BP World Trade Consulting Kft. / Ungarn Im Grohenstück 13, D- 65396 Walluf [email protected]
Tamas V. Budai Dipl. Kfm.
Dear Partners and Customers!
This newsletter about Hungary shall give you an actual information about the real estate situation in Hungary.
Investors loved Budapest properties in 2016
ast year was a record year on the investment market in Hungary. Over 910 million € have been transacted in the first half of the year and an astonishing amount of new deals could be finished in the second part of 2016. Looking at the transactions last year, two things seem certain: one is that several new entrants made purchases in 2016 and the other is that market transparency still has a long way to go.
Offices continue to be the most popular asset class.
Perhaps the most important deal was the purchase of the Eiffel Square office building and in September, the iconic Budapest office building, Park Atrium, was sold to a German-based asset manager for an undisclosed price believed to be about € 50 million as well Vaci 1, a multi-purpose heritage building.
One of the largest office deals in the Hungarian market was the purchase of the Millenium Tower Complex by the Austrian investor CA-Immo for about 175 million euro. Both the sale of Park Atrium and Millennium Towers were closed at post-crisis record low yield levels of below 7%.
German and Austrian investors became the owners of several other Budapest building this year, namely the Office Garden I office building, while the former headquarters of CIB Bank, a heritage building in the CBD of Budapest, were sold to a German investor.
German funds are not the only new players that attributed to the impressive investment volumes of 2016. Investors from The USA and other European countries purchased his year Budapest property, eg Váci Corner Offices and a redevelopment project in Hungary, Bem Palace.
Regional real estate fund also debuted on the Hungarian investment market in 2016. Belgian developer Atenor sold one of the buildings, Váci Greens to a Czech investment fund, managed by a subsidy of Slovakian investor.
Hungarian investors become increasingly active
Local investors remained active in 2016 with the public transactions of the year being the purchase of Budapest’s oldest modern office building, East-West Business Center as well as another popular building for about € 67 million.
Another major players have purchased the V17 and the V188 office building, the Infopark office complex’s building G, the Tabán office building as well as an adjacent development land located on Budapest’s Váci corridor.
The most unconventional investor of the Hungarian market, the Central Bank of Hungary also made several purchases in 2016 through its funds. The funds have purchased two office buildings in the Millenáris area of Buda, Buda Palace (a former post office), an office building in the city of Debrecen and a 7.5 ha development land on Váci Road that is planned to be the site of the largest ever office development in Budapest.
There is life outside of the capital
The retail and industrial segments of the market saw less movement than the office market, but Hungarian investors definitely made their marks in these areas in 2016. OTP Real Estate Investment Fund purchased a logistics property in Györ, while a fund managed by Diófa Alapkezelő purchased Europark (a shopping mall in South Pest), a retail asset in Western Hungary and a 3 star hotel in the city of Pécs.
Several foreign investors invested in Hungarian industrial property this year, eg two warehouses in Central Hungary, a real estate portfolio consisting of two retail centres and a vacant standalone urban logistics asset, as well as 50% logistics portfolio, which includes a lot of assets in Budapest as well.
Many of these investors have indicated that they plan to acquire more assets in their target countries which means that, without a doubt, 2017 will be another interesting year on the Hungarian investment market.
Mit freundlichen Grüßen, Pressestelle/ BP Consulting Best regards, Press Office / BP Consultingwww.spb-projektmanagement.eu