Property consultancy Colliers International expects yields to rise on Hungary’s property market this year as prices drop, an analysis of the market sent to MTI reveals.
Yields are likely to rise as companies hit by the global financial and economic crisis are forced to sell their property. But buyers will probably not appear until banks start lending again.
Prices are also likely to fall as more new office space comes onto the market, and as more companies go under liquidation, boosting supply.
Last year, the yield on Hungary’s office market rose 50bp, the yield for industrial property climbed 100bp and the yield for retail property was up 20bp.
Property transactions were worth €411 million in 2008, one-fourth of the amount in 2007, Colliers said. (MTI-Econews)