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REAL ESTATE review
INVESTMENT CLIMATE FACES NEW CHALLENGES, BUT FUNDAMENTALS ARE GOOD Having recorded increasingly positive investment volumes in recent years, the coronavirus emergency and subsequent national and international lockdowns and the expected economic downturn have combined to severely hit investment activity, with volumes for the year expected to be significantly down. However, in the longer-term, developers argue that there is a strong pipeline of asset grade products to meet investor demand and once the current emergency situation is lifted, then deals can be completed as investment fundamentals in the Hungarian
and the wider Central European markets will continue to be perceived as positive. Analysts consider that the office and industrial markets will be the favored investment destinations, while questions are being asked with regard
to the longer-term positions of the retail and hotel sectors. Further uncertainties abound regarding the price of debt finance, loan-to-value ratios and prelease requirements for investors and developers. It is believed some developers will need to reconsider their development and exit models.
Nordic Light Trio by Skanska.
