Investors maintain momentum in Hungarian commercial real estate

After an outstanding investment market performance in 2016 with EUR1.54bn invested, investors have already spent EUR795m in the H1’2017 in the Hungarian commercial real estate market, CBRE Hungary said in a press statement.

Central Europe as a region proves to be more attractive to international investors than last year, with Hungary accounting for approximately 15% of the overall investment volume. The volume split across asset classes has been more level this year thus far than in previous years, CBRE says.

Offices still took the lead with a 41% share in the first half, down from last year’s figure of 55%. Both retail and industrial have increased their share on last year to 31% and 28%, respectively. Office investment volume was driven by three transactions above EUR50m, all purchased by domestic funds, CBRE notes, while the average deal size was around EUR40m.

Capital values varied widely between EUR2,000-3,000 per sqm, as the first generation and brand new office buildings were similarly traded. The largest transaction was the purchase of Nordic Light by the Hungarian Erste Fund.

The retail investment volume was high with a total volume of EUR248m – mainly driven by the acquisition of two non-centrally located shopping centers in Budapest by Czech Republicʼs CPI as part of a portfolio. Industrial investment volume was more diverse, including a cross-country portfolio of added-value assets and prime city logistics as well.

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