The Budapest Business Journal held its traditional real estate conference on June 3.
In the opening presentation, Jones Lang LaSalle managing director Thierry Delvaux highlighted the advantages presented by the Budapest office market, particularly to the service centers of international firms.
Tim O’Sullivan, head of capital markets for CB Richard Ellis, discussed property valuation issues, stressing that investor confidence is a key factor in the matter.
Anna Malarczyk, business development manager of Poland’s Echo Investment, delivered a presentation of her company’s MUNDO project in the Zugló district of Budapest.
Pál Baross, country manager at ING Real Estate Development, stressed that the key to avoiding further crises is returning to basics and sticking to the fundamentals.
Stuart Durrant, program director of real estate studies at the CEU Business School, urged a new approach in the valuation of real estate assets in order to avoid the unjustified devaluation of properties.
Gábor Tríz, enterprise sales manager for UPC Business, presented the advances his company has made in extending its clientele of Budapest office operators.
“Keep your gunpowder dry,” said Tibor Tatár, CEO of Futureal Development, adding that projects starting now or already underway in poorer locations, will definitely struggle.
Gábor Beer, a director at KPMG, discussed the expected changes to be enacted by the government regarding the taxing of property, in particular, offshore wealth.
A panel discussion on defaults bringing new supply to the housing market featured László Harmati, deputy CEO of FHB Bank and László Bánfalvi, CEO of Otthon Centrum Hitel Center as panelists, with the discussion moderated by Ákos Murányi, senior analyst at Duna House Hitel Centrum. The experts said banks have begun enforcing more stringent conditions on issuing loans, even though demand has increased considerably.
Gergely Árendás, deputy CEO of WING, discussed the importance of sustainability in constructing new offices.
As the concluding event of the conference, a panel moderated by Charles Taylor, partner and managing director at Cushman & Wakefield and featuring Michael Smithing, managing partner at Colliers International, Judit Varga, head of the office agency at CB Richard Ellis and James Berry, director at Jones Lang LaSalle, discussed the state of B and C category office buildings. The speakers concluded that although this sub-market is not dead, they would nonetheless advise against launching new projects.