Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hungary's property market investment set to reach pre-crisis levels in 2022

Hungary's property market investment set to reach pre-crisis levels in 2022

The Hungarian real estate market is poised to return to pre-pandemic investment levels, with the year-end pickup expected to lift the value of property investment in Hungary to €1.2bn-1.3bn this year, 20% over last year's level, data from consultancy CBRE show. The outlook for the sector is good, with next year's figures likely to reach pre-crisis levels at €1.5bn-1.7bn.
The pandemic had interrupted the boom of the market that began in 2015, with real estate investments falling 40% to around €1bn in 2020.

Investment volume on the property market reached €750mn at the of October, head of the Property Developers Roundtable (IFK) Erno Takacs said.

Office space has accounted for 85% of property market turnover this year, up from around 40% before the pandemic. Retail space, which earlier made up about 40% of transactions, now accounts for under 5% of turnover, he added.

Around 120,000 sqm is being added to the office space market this year after 230,000 sqm last year, bringing the total area in Budapest to over 4mn sqm by March 2022, he said.

Vacancy rates continued to rise at the beginning of this year to 9.8%, but demand has picked up noticeably in H2, with offices starting to fill up again. In Central Europe, only Prague has a lower vacancy rate, with Warsaw, Bucharest and Bratislava above 12%.

Industrial real estate is on track for spectacular growth as supply remains constrained in the premium segment, while demand got a huge boost from the surge in e-commerce. The industrial stock in the capital region stands at 2.6mn sqm, with 170,000 sqm of hall space completed this year and a further 400,000 sqm under construction. A significant number of new projects are expected to come to the market in 2022, which could boost investment flows.

The share of domestic capital in the construction industry is the highest in Hungary among V4 countries. The construction sector is now dominated by businesses close to the Fidesz government, beefed up by state-funded infrastructure projects. The construction sector’s boom from the mid-2010s helped Duna Aszfalt, Market Epito, and R-Kord to squeeze out foreign players.

Hungarian investors are increasingly present in the region, especially in Poland, Romania and the Balkans.

Hungary’s residential property market was unphased by the pandemic. The price increase was one of the highest among EU countries since 2015.

The housing market is driven by supply and demand-side stimulus. Lower VAT on new home constructions is fuelling supply and generous government subsidies and cheap financing are driving up demand.

The impact of the National Bank's green retail mortgage loan scheme is already being felt. The MNB launched a green housing loan programme last month, providing refinancing to commercial banks at 0% interest, which will be lent to clients at a fixed rate of 2.5%.

Hungary has one of the highest rate of ownership is Europe. In light of the rising inflationary environment, demand for homes will remain elevated.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×