After an exceptional 2007 which saw the volume of commercial property investment transactions in Hungary surge to €1.9 billion, total volumes in 2008 fell to €409 million, an 80% drop on 2007 and the lowest level since 2003, real estate consultant DTZ said in its newest Investment Market Report.
Total volumes in 2008 fell to €409 million, an 80% drop on 2007 and the lowest level since 2003. This was approximately 25% of the turnover in Poland in 2008 and 40% of the volumes in the Czech Republic. The re-pricing of the Hungarian market in 2008 was delayed because of a dearth of benchmark transactions and vendor resistance to revised pricing.
International investors are likely to re-enter the Hungarian market in 2009 as a number of distressed sellers dispose of assets to free up liquidity. After a lackluster 2008, transaction volumes in 2009 are likely to increase as distressed vendors dispose of assets and re-pricing sets in. A full-blown recession in 2009 will weaken the occupier market, curbing development pipelines which should help improve the supply-demand balance once the recovery begins, DTZ said. (press release)