CIB Group expects to see further recovery on the Hungarian property market in 2016 due to a favourable investment environment combined with certain governmental stimulants. The bank group says demand
has increased expediently for land plots suitable for construction of residential properties, in addition to intensive interest in hotels and other investment properties.
The anticipated recovery is partly due to the projected effect of government measures, which, although primarily aimed to help buyers of residential properties, also have an indirect impact on the market for commercial properties. Due to the VAT rate cut and the CSOK home purchase subsidy scheme, CIB Group is also seeing considerable interest in plots suitable for construction and residential properties: since the start of this year interest has increased across the country from developers looking for suitable properties.
In addition to residential properties and plots suitable for home construction, there is also considerable demand for hotels, given the rapidly improving tourism sector.
CIB Group has seen growing demand for business and office properties in the capital and now more and more in the regional cities and towns. There is growing interest from prospective tenants or tenants expanding as businesses grow. The property market recovery is also being given a boost by the return of foreign investors to the Hungarian market. Although the market is still dominated by domestic investors, the bank group said there are currently investors from the Middle East, Russia, China and Asia seeking investment opportunities in Hungary.
More recently there has been an increase of Western European property companies seeking real estate opportunities. CIB Group’s experience shows foreign buyers are typically looking for investment properties promising a yield, whether commercial, hotel and catering, development, industrial, office or residential properties.
As a result of these positive trends, CIB Group expects to see a further strengthening of interest – already substantial in recent years – in its properties offered for sale, mainly repossessed in earlier years.