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New residential property tax to have little impact on real-estate funds

The residential property tax introduced in Hungary on January 1 will have little impact on the country's real-estate funds, since residential property subject to the tax constitutes only a minor proportion of their portfolios, the business daily Világgazdaság reported, citing Association of Hungarian Investment Fund and Asset Management Companies (BAMOSz) general secretary András Temmel.

Világgazdaság wrote that the newspaper's analysis of real-estate fund data revealed that the proportion of residential property did not exceed 10pc in any of the portfolios of major funds.

The newspaper reported that Europa Property Fund had the largest proportion of residential property in its portfolio at 7.5% as of November 2009, noting that the proportion of residential property in the portfolio of OTP Real Estate Investment Fund was only 2.19% in December 2009, while that in the portfolio of Raiffeisen Real Estate Fund was a mere 0.25% at the end of June 2009. (MTI – Econews)