EXPO REAL: Budapest is an Attractive Destination for Investors

The most prestigious real estate event in Europe, EXPO REAL, was held this fall again. This time at the professional exhibition, Budapest was represented on Budapest-stand by the Budapest Municipality, the National Investment Agency (HIPA) and the Real Estate Development Round Table Association (IFK). The Budapest stand introduced what iconic developments will shape the future of Budapest and a forum focused on how popular Budapest is for investors.

In the forum entitled "Hungary: Growth of Investor Trust", included among the expo programs, Balázs Szeneczey, Deputy Mayor of Urban Development, Róbert Ésik, HIPA Chairman, Noah M. Steinberg FRICS, RICS Hungary President, Attila Kovács, one of Horizon Development's owners, and André Zücker, managing director of KGAL Investment Management represented Hungary’s capitol. Both government and institutional side representatives agreed that Budapest is still a very popular capital for investors and also emphasized that, over the first half of 2017, the volume of transactions almost doubled over the last three months in the domestic commercial real estate investment market.

"From the developer side, the most important thing is to keep track of rapidly changing tenant demands and to provide them with the right answers. The high-quality developments are in demand in the office, industry and hotel segments" said Noah M. Steinberg and also added that "both international and domestic investors are looking for long-term, stable opportunities. Looking ahead, the Hungarian economy is expected to grow steadily and the country and Budapest represent an attractive target on the basis of objective and subjective factors." He sees that a strong domestic layer is emerging, which is very good for the Budapest market.

André Zücker believes that the yields on real estate investments are indeed attractive, given the low risk factors, and not yet political risk. According to him, Budapest is also popular for investors, not only because of relatively low wages, but also because of their skilled and talented workforce.

Not only is the growth of the past years is giving joy for the market, but also, according to experts, investment interest and investor interest will continue to grow in the following years too.

Source:

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