Offices remain most popular investment assets in real estate market
Image by Pixabay
Office properties continued to be both the most abundant and attractive investment assets on the Hungarian commercial real estate market of 2020, according to “Real Estate Intelligence Report 2021 – Hungary”, a report by DLA Piper Hungary.
The annual real estate market analysis of DLA Piper Hungary shows that investor confidence in office properties remained unbroken in 2020 and accounted for 60% of the firm’s transactions. The vast majority of these office transactions involved Class A office buildings in central locations of Budapest. The law firm notes that offices will remain important long after the COVID-19 epidemic as a workplace and as an investment asset, according to market participants.
Due to the challenges and uncertainty caused by COVID-19, investment volume decreased by 20% compared to 2019; however, the Hungarian commercial real estate market continued to attract domestic and foreign investors. Although it was expected that COVID-19 would make it harder for foreign investors to transact and domestic investors would have an advantage, the market share of domestic investors dropped in 2020 to 61% from 72% in 2019.
"The arrival of the pandemic in March 2020 affected the entire Hungarian real estate sector – however, it had vastly different effects on the different market actors and asset classes. During the transactions we managed, we saw a virtually instant disappearing of investor interest in retail and hospitality-related assets, while logistic and industrial properties came into the focus," said Szilárd Kui, local partner and head of real estate at DLA Piper Hungary.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.