Commercial property investments reach EUR 1.8 bln in 2018
The value of commercial real estate investments in Hungary rose 4% to EUR 1.82 billion last year, the National Bank of Hungary (MNB) said in a biannual report on the sector released Monday, as reported by state news agency MTI.
Investments in office real estate accounted for 48% of the total, while investments in retail property made up 42%. Industrial and logistics property investments made up 6% of the total, and hotel investments 5%.
The annual yield on prime office property stood at 5.75%, while the yield on industrial property reached 7.50%, and the yield on prime shopping center space came to 5.50%.
Hungarian companies accounted for 65% of the investment volume on the commercial real estate market last year, up from 41% in 2017 and 32% in 2016. South African companies accounted for 14% of the investment volume last year, U.S. companies for 7%, and German companies 5%.
Most industry insiders say investment demand for commercial real estate will stagnate in the first half of 2019, with the exception of demand for the most successful shopping malls, which more than half of insiders say will increase, according to the MTI report.
More than two-thirds of industry insiders project increased demand for office space leases in the capital and the most successful shopping malls. Most expect stagnating demand for retail parks and warehouse space.
On the Budapest market, leases for prime office space were being offered for a monthly EUR 25.00 per square meter at the end of last year. Offered monthly rents were lower in the "A" and "modern" office space categories, at EUR 14.73 and EUR 12.19, respectively, per square meter.
Rents for retail space stood at EUR 70-140 per square meter per month in high streets, at EUR 70-105 in primary shopping malls, and at EUR 35-60 in shopping malls in regional towns.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Gov't Awards HUF 6.5 bln of Subsidies to SMEs in Underdevelo...
Hungary's Largest ESG Consultancy Formed by Merger of EY, De...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
