Futureal Group’s Cordia to roll out 1,660 new residential units
Cordia, Futureal Group’s residential development subsidiary, has announced the largest roll-out of residential development projects in Hungary by any developer in the last 20 years, according to a press statement sent to the Budapest Business Journal today.
The simultaneous launch of eight new residential development projects in Budapest will bring a total of 1,660 new homes to the market, where annual supply collapsed to only 2,000 units in 2014 and where sales are projected to exceed 7,000 this year, the press statement says.
“The Futureal Group has created Cordia with the aim of becoming the largest regional residential developer active in CEE and SEE markets,” said Gabor Futó, founder of Futureal Group. "We see growing regional economies, historically low interest rates and the return of mortgage financing as the catalyst for a new period of healthy market performance. Significant pent-up demand, as well as bad-quality housing stock in some of the countries, create a strong background for our expansion plans.”
According to Cordia, residential real estate investment offers great opportunities for retail investors compared to stocks and bonds. Average rents have doubled over the last ten years in Budapest and an average net monthly income for a newly built, one-bedroom flat stands at EUR 650. “Investors could reach an annual gross rental return of 6-7% with Cordiaʼs well-located homes,” said Tibor Földi, CEO of Cordia. “What’s more, our property management unit offers a full range of services to investors in order to design, furnish, find tenants, rent out the apartment and supervise payments. All in all we offer a convenient, financial-type investment opportunity to our customers in a real asset.”
Cordia is also developing several residential projects in Kraków and Warsaw. Newly built apartment prices are in general 30% higher in Warsaw than in Budapest, and 10% higher in Kraków than in the Hungarian capital.
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