Hungary Real Estate Report Q4 2011
Includes 3 FREE quarterly updates
Hungary’s real estate market, like so many others, was seriously damaged by the global financial crisis. Economic growth is now returning and with that will come an uptick in demand for office and retail space, as well as industrial property.
The particular problems that are specific (but not unique) to Hungary’s real estate market are:
‘Investors on the ground understand what is going on and are now far more willing to invest. However, those that have yet to enter the country and are gathering information from the media or their respective companies’ research departments are still nervous and will be difficult to convince,’ O’Sullivan said.
Hungary’s real estate market, like so many others, was seriously damaged by the global financial crisis. Economic growth is now returning and with that will come an uptick in demand for office and retail space, as well as industrial property.
The particular problems that are specific (but not unique) to Hungary’s real estate market are:
- A weakened banking sector is restricting access to finance. Moody's Investors Service has noted that the banking sector is characterised by a high FX debt rate of more than 70%. The percentage of Swiss franc loans is particularly high, in an environment where households generally have no foreign currency income which would provide a natural hedge against currency rate risks. ‘The large amount of foreign-currency lending to households underpins the rating agency's expectation that asset quality will deteriorate further, as these borrowers' ability to service their debt has weakened significantly following more than 30% depreciation of the forint against the Swiss franc in recent years,’ Moody's Vice President and Senior Analyst Simone Zampa said.
- The present economic recovery is narrowly based. It is being built on the strength of manufactured exports to Germany. Domestic demand remains weak and is not expected to pick up until 2012.
‘Investors on the ground understand what is going on and are now far more willing to invest. However, those that have yet to enter the country and are gathering information from the media or their respective companies’ research departments are still nervous and will be difficult to convince,’ O’Sullivan said.
Contents
Executive SummarySWOT Analysis
Hungary Real Estate/Construction SWOT
Hungary Economic SWOT
Hungary Business Environment SWOT
Real Estate Market Overview
Real Estate Market Analysis
Table: Hungary’s Real Estate Market – Rents, 2010 And 2011 (per m2/month, EUR)
Table: Hungary’s Real Estate Market – Net Yields, 2011 And 2012 (%)
Table: Hungary’s Real Estate Market – Terms Of Contract/Lease, Mid-2011
Industry Forecast Scenario
Real Estate Outlook
Table: Hungary’s Real Estate Market – Rentals, 2011 And 2012 (m?/month, EUR)
Table: Hungary’s Real Estate Market – Forecast Yield, 2008-2015 (%)
Hungary’s Construction And Infrastructure Outlook
Table: Hungary Construction And Infrastructure Industry Data, 2008-2015
Table: Hungary Construction And Infrastructure Industry Data, 2012-2020
Hungary’s Macroeconomic Outlook
Table: Hungary – Economic Activity, 2008-2015
Business Environment
Hungary’s Business Environment
Table: BMI Business And Operation Risk Ratings
Table: BMI Legal Framework Rating
Table: Labour Force Quality
Table: Emerging Europe - Annual FDI Inflows
Table: Trade And Investment Ratings
Competitive Landscape
Company Profiles
Budapesti Ingatlan Nyrt
Casaro-Hungary
Fomterv
GTC Hungary Real Estate Development
Hidepito Zrt
KESZ Central European Building & Construction
SCD Group
TriGranit Development Corporation
Vegyepszer
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Sources Skip to top