Commercial property investments up 133% in Hungary in 2016

MNB

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The value of commercial property investments was up by 133% in Hungary in 2016, reaching EUR 1.7 billion, property consultant Colliers International told Hungarian news agency MTI today.

Office properties remained the most popular asset type, accounting for 56% of the total transaction value, followed by retail properties with 25% and industrial and logistics projects with 11%, Colliers said.

Hungarian investors had a market share of 37% last year, it added.

The average size of individual deals reached EUR 25 mln in 2016, up from EUR 15 mln in the previous year. Yields declined by 0.5-1% from 2015. The typical prime office yield at the end of 2016 stood at 6.5%, while prime retail yields were at 6.25% and prime industrial and logistics yields at 8.25%, the real estate consultant said.

Colliers said it expected 2017 to be another active year, with a larger number of portfolio deals and value-added investments, combined with yield compression and rental increase in all asset classes.

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