According to experts of CIB Group Hungarian real estate market can expect further growth due to the favourable environment for investments combined with certain governmental stimulants.
Further growth in the Hungarian real estate market
One of the reasons of the increase is the prospective effect of the government actions, which primarily attempt to boost residential property market, buying new homes but the incentives can have an indirect impact on the market for commercial properties in Hungary.
Booming tourism
Due to the reduced VAT and the CSOK housing benefit program the bank is also seeing significant interest in residential properties and plots of land suitable for the construction of residential properties in addition to intensive interest in hotels and other investment properties. There has been a growing demand for properties suitable for construction developments from the part of real estate developers since the beginning of this year. Beside residential properties and lands, hotels are also in high demand in the rapidly booming touristic sector.
Demand for business and office properties
The bank group reports growing demand in business and office properties in Budapest. This trend has already taken place in the country and in bigger towns as well. CIB expects to see a further strengthening of interest of future and existing tenants extending their business.
Foreign investors in large numbers
CIB said that foreign buyers have started to return to the Hungarian market, which is very beneficial for the expansion of the real estate market. According to the analyses investors both from the East -Middle East, China, the rest of Asia – and the West - Western European real estate companies - seek Hungarian property investment opportunities.
(Sources: http://www.portfolio.hu/ingatlan/lakas/keleti_befektetok_vasaroljak_fel_budapestet.229343.html, http://www.cib.hu/system/fileserver?file=/Sajtoszoba/cib_sajtokozlemeny_ingatlanpiac_160329.pdf&type=related)
