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REAL ESTATE review
Corvin offices sold to OTP fund.
INTERNATIONAL AND HUNGARIAN CAPITAL ACTIVE IN HUNGARY Real estate investment volume for 2018 in Hungary was close to EUR 1.8 billion, reflecting a third consecutive year of strong investor appetite and the highest annual transaction volume since the economic downturn of 2007 according to JLL. By Gary J. Morrell The fundamentals are seen as being strong in all market sectors with rents rising and yields compressing. CEE investment volumes have continued to rise. Local capital is dominating the Hungarian and Czech investment markets. Hungary is the only market where yield compression is forecast in all market sectors. Bence Vécsey, head of investment services at Colliers International Hungary, estimates
that investment activity for the year will be EUR 1.2-1.5 billion.
Edwards, head of capital markets at Cushman & Wakefield Hungary.
“The last three years have been fairly stable in investment volume terms, but I think that we will be down on these levels [this year] due to a lack of available stock. Last year’s numbers were boosted by the transactions of two of Budapest’s sizable prime shopping centers and it is difficult to foresee how these can be replaced. I would expect around EUR 1.5 bln to be transacted this year,” said Mike
Tim O’Sullivan, head of investment properties at CBRE Hungary, broadly speaking, agrees with that assessment. “Around EUR 1.7 bln in commercial real estate transactions was concluded in 2018 and an estimated EUR 1.3 bln-1.5 bln in investment volume is predicted for this year, based on the current outlook. The represents stable and
