Yields on Hungary office transactions drop slightly
Investments on Hungary's real estate market totalled €158 mln in the third quarter, and yields on the office market slightly dropped, the commercial property services firm JLL said yesterday.
Transactions from the sale of income-generating real estate totalled €138 mln in Q3. Office sales were the largest transactions in the quarter, including the sale of Eiffel Palace, the Northern part of Vision Tower and Green House, all almost fully rent, in the quarter.
The largest available yield dropped as a result of the successful transactions, from 7.3% in Q2 to 7.5%, the lowest yield in six years, Benjamin Perez-Ellischewitz, heading JLL's investment division said
Real estate investment in Hungary totalled €440 mln in the first nine months, including €368 mln from the sale of income-generating property, JLL said, forecasting the annual total at €550 mln. Office vacancy ratios fell 0.7 percentage points in the quarter to 16.85%, which is down 1.7 percentage points from a year earlier.
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