CIB Group expects further recovery on Hungarian property market
Due to a favorable investment environment combined with certain governmental stimulants, further recovery is expected on the Hungarian property market, CIB Group said today in a press statement.
As a result of positive trends in the market, CIB Group expects to see a further strengthening of interest – already substantial in recent years – in its properties, mainly repossessed, and now being offered for sale.
According to CIB, demand has quickly increased for plots of land suitable for the construction of residential properties in addition to intensive interest in hotels and other investment properties.
Although the Hungarian government’s primary aim is to help home buyers purchasing residential properties, these incentives can have an indirect impact on the market for commercial properties, CIB Group foresees.
“Due to the VAT rate cut and the CSOK home purchase subsidy scheme, the bank group is also seeing considerable interest in plots suitable for construction and residential properties: since the start of this year interest has increased across the country from property developers looking for properties suitable for development”, CIB Group said. In addition to residential properties and plots suitable for home construction, there is also considerable demand for hotels given the rapidly improving tourism sector, CIB added.
CIB said that the domestic market is also being fueled by the return of foreign investors to the Hungarian market, which is still dominated by domestic investors. These foreign investors are originating from the Middle East, Russia, China and the rest of Asia. More recently there has been an increase of Western European property companies seeking real estate opportunities, CIB added.
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