Hungarian property developers pay about two percentage points more for credit than their peers in the Czech Republic, Slovakia and Poland, because of the country’s risk premium, Péter Futó, who heads developer Futureal, told journalists on Tuesday.
This makes developments more expensive in Hungary, Futó said. Banks raised the self-financing requirement for developers from 20% before the crisis to 40-50%, and Hungarian developers have the added burden of high interest rates. While banks in Slovakia, the Czech Republic and Poland lend to developers at 4%, Hungarian developers pay 6% because of the country’s risk premium, he explained.
Futureal is still considering new acquisitions, and it is looking into future projects in Romania and Poland, said Futureal chief architect Gábor Radványi.
Futureal will decide whether or not to build a shopping centre near the capital’s Kelenföldi Station after it learns when the new fourth underground line will start operating, Futó said, answering a question.
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