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REAL ESTATE review
MARKET SENTIMENT Noah Steinberg Chairman & CEO, Wing
Viktor Nagy Country Manager Operations IMMOFINANZ Hungary
If you look at the way the Budapest office market has progressed in recent years, there has been a lot of development and growth, but there has also been a lot of take-up and we see a good balance between requirements for modern buildings and a diversity of types of new space and the ability of developers to deliver this. We also see that growth in the Hungarian economy and specifically in Budapest is very strongly founded on economic fundamentals and this makes us comfortable. I think that the quality and specification of the buildings that we develop is completely comparable with Western Europe. Last year we delivered the Telekom building, which is the largest single office building in Hungary, with a long-term lease to Magyar Telekom, the Ericsson building where they have both office and R&D functions, and we are also in the process of developing a building for evosoft; these are projects that conform to the highest international standards in every way. They are modern buildings, environmentally sound, very efficient in terms of space and environmental footprint and built to a very high quality with regard to both internal finishing and infrastructure. We are present across the entire spectrum of the Hungarian real estate market. Office is our largest single area but we are also active in all the other market segments and I think that this makes us a diversified Hungarian real estate player, which is a good strategy.
The Váci út office corridor has been very popular for years, and we also have well performing office centers there or in its catchment area. However, we are delighted that there is also considerable interest outside Váci út. For example, we achieved outstanding results last year with our Office Campus building in District IX, which is almost fully rented. New ways of working play a significant role, especially among tenants looking for new office space. The mere representation of the company is increasingly accompanied by the necessity to provide optimal working conditions. The intention of our myhive office brand was to create a friendly atmosphere and welcoming character. We launched the product together with hotel architects and created a hotel atmosphere with several signature elements like a low welcome desk, oversized floor lamps, and seating areas with comfortable armchairs that invite people to chat and relax. With regard to our properties and brands, we have a high degree of standardization. This means that regardless of whether you visit a myhive office building in Vienna, Budapest or Warsaw, or a STOP SHOP in Austria, Hungary or Serbia, you find the same standards and architectural features. IMMOFINANZ is firmly committed to environmental issues across our portfolio, and more than half of our Hungarian offices now have BREEAM In-Use certification. As responsible real estate owners, we consider this task a priority. Of course, it is also expected by clients, who increasingly see the clear advantages of being in a building that is environmentally-friendly, or environmentally neutral.
