Decline in commercial real estate investment could last till end-2021
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Commercial real estate investment in Hungary fell 41% to EUR 1.1 billion last year, and experts expect the decline to continue until the end of 2021 or early 2022, the National Bank of Hungary (MNB) said in a biannual report on Wednesday, according to a report by state news wire MTI.
MNB'x report on commercial real estate shows the average size of property investments dropped 34% to EUR 21 million in 2020. The inauguration of five big projects accounted for 48% of investments during the year.
Office buildings made up 57% of commercial real estate investments, hotels 15%, industrial and logistics properties 14%, real estate property 7% and development plots 6%.
The Housing and Real Estate Market Advisory Board (LITT), a body of real estate professionals and policymakers established by the central bank, augur a return to investment growth in the sector at the end of 2021 or early in 2022, MNB said.
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