Hungarian news outlet Magyar Idők has reported that several real estate developers are about to begin the construction of residential buildings at various locations – on which, according to the original plans and arrangements, office blocks were supposed to be built.
The article explains the situation based on specialists’ opinions: contrary to the fact that office blocks grant far more profit and revenue for real estate companies, the reduced sales tax rates (currently at 5%), and the largely expanded housing allowance program shifts the focus and directs the attention at apartment houses.
Tibor Nagy, the business development executive of Otthon Centrum Solutions commented that in light of the general experiences on the market, locations which are suitable for the construction of both residential housing and office blocks are usually used for the latter. Mr. Nagy also noted that the aforementioned reduction of taxes and the expanded housing allowance program can make a significant change in said practice.
Moreover, he pointed out that in a short timeframe, several enquiries have already been made about various favourable lots in Budapest by residential designers, despite that office buildings were already planned out to be built on these locations. The executive reckons that this option is primarily available in the centre of Pest, Inner Buda, and the office district on Váci Corridor (Váci Avenue).
Ernő Takács, the president of Hungary’s Developers’ Roundtable Association commented that there possibly won’t be an explosive change in these tendencies, but complex developers – experts who not only excel in developing office buildings – can contemplate the decision to principally dedicate their work to residential apartments in the foreseeable future. Simultaneously, Mr. Takács emphasised that this will not result in the decline or reduction of the numbers of office blocks, because there are demands to be met in that sector as well.
The article also mentions that the government has already issued a detailed information sheet directed at banks about the allowance program, to facilitate the acquisition of CSOK for the families involved. According to the Ministry for National Economy, all banks were asked to cooperate and function in order to enable families to capitalise the benefits of the allowance and transfer the funds as soon as possible. Erste Bank has recently notified its clientele that CSOK will soon be available in their branches as well, following the footsteps of FHB and OTP.
(Source: http://www.vg.hu/vallalatok/ingatlan/irodahazak-helyett-lakoingatlanok-epulhetnek-463931)
