CIB Group selling 29 Hungarian properties as one package

Acting on behalf of CIB Group, Otthon Centrum Solutions Kft. is offering the properties at an average discount price of HUF 94,000 per square meter, the statement said.

The bank group decided to sell the properties in the form of a package deal in response to a pick-up in property market demand, and it expects to launch similar special offers in the future, the group said in the press statement.

The portfolio – including 11 buildings in Budapest and 18 situated in five counties in Northern Hungary – only consists of properties that are free and clear of all liens, claims and encumbrances, with clear title, and in the possession of the bank group, the statement said.

“If the investor intends to resell the real properties one by one for a profit, in addition to the package discount the expected appreciation will also contribute to a higher profit,” Otthon Centrum’s head of business development, Tibor Nagy said. Nagy stressed that, though the experts at Otthon Centrum anticipated a slowdown in Budapest real estate price growth in the coming period, a near 10% increase could still be expected over a one-year period.

“Based on an increase in demand on the real estate market, a low-yield environment and a pick-up in the mortgage loan market, we expect to successfully sell the package on offer in a short time,” said CIB’s senior expert, Rudolf Nemes. He added that the CIB Group had selected the properties for the package based on their purpose, location and value. “We know that in many parts of the country there are only very few properties available for rent or lease, and this creates opportunities for investors,” Nemes said.