The real estate market shows the first signs of revival after a long time of hibernation during the crisis. Investments in volume terms this year can exceed 2009 figures, DTZ real estate consultancy projects.
Hungary's real estate market has weathered the worst spells of the crisis and while it is still stagnating, the first signs of revival are already visible, a recent analysis by real estate consultancy DTZ reveals.
But growth will largely depend on domestic economic policy and international investor sentiment, according to the survey.
DTZ projects that quality office space will become scarce in a few years' time, the retail sector will pick up, and development will gather pace in the logistics sector.
The investment market got off to a good start in 2011. In the first half of this year investors spent an overall €230 million, more than the value of transactions in the entire year of 2010 (€188 million).
Institutional investors mostly preferred outstanding retail properties and quality office buildings with long-term rental agreements. According to DTZ, these two segments account for a large portion of the overall investment volume.
At the same time, Hungary remains an unpopular target for investors due to country risks, a scarcity of first-grade properties and a gap between buyer and seller expectations. Yet, investment volumes can still exceed 2009 figures, says managing DTZ director Balázs Czifra.