Large transactions set up market for its strongest year ...
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MARKETVIEW Large transactions set up market for its strongest year since the pre- crisis record Hungary Property Investment, H1 2016 H1 2016 CBRE Research 1 Note: Arrows indicate change from previous year 6.75% 8.50% © 2016 CBRE Kft. | 6.25% EUR 735 M Chart 1 – Commercial Real Estate* (CRE) Turnover in Hungary Sources: BRF, CBRE Research *Commercial Real Estate stands for any kind of income-producing property, excluding land and residential for lease SUMMARY Hungarian CRE investment volume reached EUR 735 million in H1 2016, marking a 177% y-o-y increase. The Hungarian investment market has shown the most dynamic expansion amongst the core CEE countries over the past 18 months. Based on the pipeline and the recent acceleration of international investment activity, we forecast a higher share of large portfolio transactions bringing further growth in total volume. For 2016 we expect the CRE investment volume to reach EUR 1.2 billion, which would make it the second-highest annual figure to date.
Transcript of Large transactions set up market for its strongest year ...
MARKETVIEW
Large transactions set up market
for its strongest year since the pre-
crisis record
Hungary Property Investment, H1 2016
H1 2016 CBRE Research 1
Note: Arrows indicate change from previous year
6.75% 8.50%
© 2016 CBRE Kft. |
6.25% EUR 735 M
Chart 1 – Commercial Real Estate* (CRE) Turnover in Hungary
Sources: BRF, CBRE Research *Commercial Real Estate stands for any kind of income-producing property, excluding land and residential for lease
SUMMARY
Hungarian CRE investment volume reached
EUR 735 million in H1 2016, marking a
177% y-o-y increase.
The Hungarian investment market has shown
the most dynamic expansion amongst the
core CEE countries over the past 18 months.
Based on the pipeline and the recent
acceleration of international investment
activity, we forecast a higher share of large
portfolio transactions bringing further growth
in total volume.
For 2016 we expect the CRE investment
volume to reach EUR 1.2 billion, which would
make it the second-highest annual figure to
date.
MARKETVIEW
MACROECONOMIC SUMMARY
SOURCE OF INVESTMENT
H1 2016 CBRE Research 2
HUNGARY PROPERTY INVESTMENT
Chart 3 – Investment Turnover in Core CEE Countries
Source: CBRE Research
© 2016 CBRE Kft. |
Chart 2 – Key Financial Indicators in Hungary
Source: National Bank of Hungary
Chart 4 – Annual Growth Rates Amongst Core CEE Countries
Source: BAMOSZ, CBRE Research Note: Slovakia did register the highest growth rate but was excluded from the chart to optimize visual scaling due to marginal base year volume.
MARKETVIEW
H1 2016 CBRE Research 3
HUNGARY PROPERTY INVESTMENT
Chart 7 – Prime Yields by Sectors and Yield Gap on 10-yr Bond Rate
© 2016 CBRE Kft. |
TARGETS OF INVESTMENT
YIELD LEVELS
Sources: Oxford Economics, CBRE Research *Yield gap equals the difference between the prime yield for Budapest office, and the 10-year government bond.
Chart 6 – Split of CRE Investment Turnover by Purchasers’ Nationality
Source: CBRE Research
Chart 5 – Investment Turnover of Hungarian Purchasers and Their Share in Total Volume
Source: CBRE Research
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
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