Showing posts with label Hungary Retail Real Estate Supply. Show all posts
Showing posts with label Hungary Retail Real Estate Supply. Show all posts

Wednesday, June 6, 2018

Hungary Real Estate Market Research Report-Ken Research


How is Real Estate Market Performing in Hungary?

Hungary real estate market contributes a substantial share in Hungary’s overall GDP with infrastructure projects accounting for highest spending. The growth in Hungary real estate market has been driven by four major segments namely- residential, commercial, retail and hotel sectors. Out of all the segments, residential segment has dominated the Hungarian real estate market. In Hungary some of the major cities which have seen the development of real estate sector have been Budapest, Debrecen, Szeged, Miskolc, Pecs and Gyor. The real estate market has witnessed growth in residential market at a CAGR of ~% during the period 2012-2017. But the major decline in retail market has led to plunge in the overall real estate market value.


In 2015, Hungary real estate market witnessed a major setback due to plaza ban has led to decline in construction of retail real estate property in Hungary. Low interest rates throughout the European market makes the real estate environment to grow; this also tends to improve the preferences for nonresident to invest in Hungarian property and also makes the prices to appreciate for housing projects. Boost in migration of people into Hungary during the period 2012-2017.  As number of people migrated in 2012 was ~ and in 2015 it reaches to ~. Whereas, ~ people migrated in 2016, turns out to be key reason for expansion of residential property.

What is the Major Segment in Hungary Real Estate Market?
Hungary Residential Real Estate Market has performed exceptionally well in response to increasing demand for homes by growth in number of immigrants, increasing tourists density in the country and reduction in VAT rate by ~% on new construction of building has all together grows demand for residential construction in Hungary. Most expensive streets for residential construction in Hungary are Orom Street which has land price of USD ~ per square meter, Ormodi Street in District 12 has the second highest land price as USD ~ per square meter. Whereas, Gyogy square Balatonfured has land price as USD ~ per square meter as of 2015. Major dwellings constructed in Hungary are in other towns and country towns as price of land is low as compared to price of land in Budapest. Hungary residential real estate market is supported by economic growth and influence of increasing expat population. Overall residential market volume has increased from ~ million square meters in 2012 to ~ million square meters in 2017 at a CAGR of ~% during the period 2012-2017. Residential real estate market prices are very high and active. A large number of residential properties are being dealt at the moment in Budapest.

How Does The Commercial Real Estate Market OPERATE In Hungary?
Hungary Commercial Real Estate Market majorly comprises of office space that has witnessed a growth during 2012-2017 as many multinational companies established themselves in Hungary, attracted by the strong business activities and robust economic growth. Occupancy rate has increased from ~% in 2012 to ~% in 2017 for commercial office space.
The commercial rental market is mainly concentrated in Budapest, where the SSC (shared service centers) and BPO sector with the introduction of major companies like British Telecom and others hold the majority of transactions in its commercial market. In Budapest, commercial real estate market is the most dominating market, contributing highest to the rental value. Grade-A office rent has increased from USD ~ per square meter per month in 2012 to USD ~ per square meter per month in 2017.
Major commercial projects operations in Hungary are, East - West Business centre project based on modern office, Green house project based on sustainable development, Nordic light “A” class project and many others. Currently, due to market and intensive economical boom, rates for commercial property will remain sky-scraping.

Snapshot On Online Hungary Real Estate Market
In Hungary, online property portals are increasingly becoming a tool for research on buying, selling or leasing residential, commercial, retail and other kind of properties. Revenue for these portals is derived by offering a packaged deal to brokers, developers and professional agents, as well as several online property agents. The basic business model for these portals is to charge commission once the property is bought or sold. The online property market in Hungary has been dominated by a few real estate portals such as Themovechannel.com, Primelocation.com and Zoopla.CO.UK, Mybudapest.home.com, Alberlet.hu, Hungarianhouses.com, Tranio.com, Budapestrent.com, Flat-Rent-Hungary.com and Mhomes.hu.

The sales proportion of real estate properties through online market has consistently grown owing to rising internet penetration, growing demand of internet among youngsters, surging youth population and opportunities by government infrastructure investments. The online market is anticipated to be vibrant during the upcoming years, boosted by growing number of property portals.

How Competition Scenario Works In Hungary Real Estate Market?
Hungary real estate market has been dominated by the increase in demand for residential dwellings and commercial office buildings along with construction of hotels due to significant increase in tourist arrival in the country. Major real estate players such as Skanska, Trigranit are some of the largest international real estate players in Hungary which are majorly involved in the construction of both residential and commercial office buildings majorly in Budapest region as it is the capital of the country and has large number of residents living in this region.
Local real estate players of Hungary include Budapest Real Estate Plc, Graphisoft Park real estate development, Pannonian Exchange Plc, Appeninn Holding Asset Management, Futureal Group and its subsidiary Cordia real estate. They usually operate in construction of commercial office building and asset management. However, Cordia real estate particularly deals in residential construction in Hungary.

Major foreign investors has been investing in construction of commercial office buildings and retail shopping centers as Hungary real estate market has scope for development and land prices are cheap as compared to other European countries and to generate high return on their initial investment for long term period. Trigranit sold Class “A” 70,400 square meters of complex which was comprised by four office buildings within the Millennium City Center in Budapest for USD ~ million, which is still recorded as the greatest official deals in the terms, value and gross leasable area.

What Are Future Estimations About Hungary Residential Real Estate Market And Its Segments?
The future for residential real estate market in Hungary has been explained through three major cases namely Base Scenario, Worst Scenario and Best Scenario.
According to Base Scenario: Hungary residential real estate market volume has been anticipated to increase from ~ million square meters in 2018 to ~ million square meters in 2022 at CAGR of ~%during the period 2018F-2022F. It has been expected that low interest rates on mortgage loan and improved labour market position will maintain constant demand for residential houses in Hungary.
According to Worst scenario: Hungary residential real estate market volume has been projected to increase at a slower rate from ~ million square meters in 2018 to ~ million square meters in 2022 at CAGR of ~% during the period 2018F-2022F. In future it has been anticipated that reduced VAT rate will be effective till 2019. Moreover, VAT has been expected to increase in future which will affect real estate market adversely.

According to Best Scenario: Hungary residential real estate market volume has been projected to increase in future from ~ million square meters in 2018 to ~ million square meters in 2022 at CAGR of ~% during the period 2018F-2022F. In future it has been expected that growth in income level and non- refundable housing scheme subsidy from Hungarian government attracts more investment in residential sector.

What Are Future Estimations About Commercial Real Estate MARKET of Hungary?
The future for commercial real estate market in Hungary has been explained through three major cases namely Base Scenario, Worst Scenario and Best Scenario.

According to Base Scenario: Hungary’s commercial real estate market total leasing volume has been projected to increase from ~ thousand square meters in 2018 to ~ thousand square meters in 2022 at CAGR of ~% during the period 2018F-2022F. In future it has been expected that reduction in corporate tax rate by ~% will attract foreign investors as Hungary has been ranked first in trading across borders which makes it a prime location for foreign companies to start their business in Hungary and get access to trade freely across the borders.

According to Worst Scenario: Hungary’s commercial real estate market total leasing volume has been anticipated to decline from ~ thousand square meters in 2018 to ~ thousand square meters in 2022 at negative CAGR of ~% during the period 2018F-2022F. In future it has been expected country’s ease of doing business ranking will increase which would declines the rate of investment for MNC’s and other major industries in future which will bring down the commercial leasing activity in Hungary.

According to Best Scenario: Hungary’s commercial real estate market total leasing volume has been projected to increase from ~ thousand square meters in 2018 to ~ thousand square meters in 2022 at CAGR of ~% during the period 2018F-2022F. It is expected that in future around more than 100 companies are looking forward to invest in Hungary due to economic stability, growth and free trade access across borders.

What would be the Future for Retail Real Estate Market in Hungary?
According to Base Scenario: Hungary’s retail real estate market volume has been anticipated to increase from ~ thousand square meters in 2018 to ~ thousand square meters in 2022 at CAGR of ~% during the period 2018F-2022F. It has been expected that major retail brand stores will be set up in Hungary as retail sales are increasing due to increasing growth in tourist arrivals in the country. On the other hand, Etele Plaza in City Center will be delivered in 2018-2019 which is situated in Budapest and it would be third largest mall of Hungary.

According to Worst scenario: Hungary’s retail real estate market volume has been expected to decline from ~ thousand square meters in 2018 to ~ thousand square meters in 2022 at CAGR of ~% during the period 2018F-2022F. Major shift has been expected in mode of purchasing products in future as people prefer to buy online rather than retail stores. It has been expected that Plaza ban can be again implemented by the Hungarian government in near future.

According to Best Scenario: Hungary’s retail real estate market volume has been expected to increase from ~ square meters in 2018 to ~ square meters in 2022 at CAGR of ~% during the period 2018F-2022F. In future it has been anticipated that construction of high street market and malls will increase as people have become trendy and have variety in choice to capture larger market share more number of company outlets can establish their business in Hungary.

What will be the future for Hotel Real Estate in Hungary?
According to Base Scenario: Hungary’s hotel real estate market generation of gross income from accommodation fee has been expected to increase from USD ~ million in 2018 to USD ~ million in 2022 at CAGR of 11.9% during the period 2018F-2022F. In future it has been anticipated that major pipeline projects which are under construction in Hungary will generate higher revenue as they are mostly five star and four star grading hotels which focuses majorly on higher spending visitors. Hungary is hosting UEFA EURO Football Championship 2020 and European Aquatics Championship in 2020 which would lead to increase in number of tourist’s arrival in Hungary and contribute to generate high revenue from accommodation fees.

According to Worst Scenario: Hungary’s hotel real estate market generation of gross income from accommodation fee has been expected to  grow from USD ~ million in 2018 to USD ~ million in 2022 at CAGR of ~% during the period 2018F-2022F. It has been anticipated that major new construction of hotels in future will took place in country side as Budapest is already occupied. Whereas, hotels in country side has low rental rates which will generate lower income for hotel sector in Hungary.

For more information on the research report, refer to below link:
https://www.kenresearch.com/manufacturing-and-construction/real-estate/hungary-real-estate-market/149544-97.html

Related Reports:
https://www.kenresearch.com/manufacturing-and-construction/real-estate/qatar-real-estate-market/112182-97.html
The Government of Qatar is focusing a lot on construction to meet the demand of tourists visiting Qatar in 2022 and meet the need of residence owing to increasing population.

https://www.kenresearch.com/manufacturing-and-construction/real-estate/indonesia-real-estate-market-research-report/583-97.html
Indonesia real estate market in terms of competition is extremely fragmented since there are a large number of local small builders who operate within the cities. However, Indonesia property sector has continued to be dominated by several big developers.

https://www.kenresearch.com/manufacturing-and-construction/real-estate/philippines-real-estate-market-research-report/29319-97.html
Metro Manila contributes the largest share in the Philippines real estate. The retail sector contributed to the highest market share in the Manila real estate market accounting for ~ % share in 2015.

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249

Thursday, May 31, 2018

Hungary Real Estate Market Outlook to 2022 – Ken Research

The report titled Hungary Real Estate Market Outlook to 2022 - by Residential (Dwellings Constructed by Regions, by Builders Type, Holiday Units Constructed by region, Dwellings Leased by Regions, Dwellings Sold by Regions), by Commercial, Retail and Hotel provides a comprehensive analysis of Hungary real estate market introduction and genesis, Hungary real estate market size by value and market segment by residential real estate market (Dwellings constructed by regions, Residential dwellings constructed by type of builders, Holiday units constructed on the basis of region, Dwellings leased on the basis of regions, Dwellings sold on the basis of regions) by Commercial real estate market (Hungary commercial real estate by volume, Budapest commercial real estate by volume, Budapest commercial rental real estate market) by Retail real estate market (Volume) by Hotel real estate market (Capacity of accommodation establishment, Tourist nights at Hotel, Tourist arrivals at accommodation establishment). The report covers the overall competitive landscape; government role and regulations, trends and developments, snapshot on Hungary online real estate market which covers overview of online companies operating in Hungary, business model, comparative analysis on business model, company profile of online real estate companies. The report also covers SWOT analysis, future projections for real estate market in Hungary along with analyst recommendation.
Market Size: Hungary real estate market contributes a substantial share in Hungary’s overall GDP with infrastructure projects accounting for highest spending. The growth in Hungary real estate market has been driven by four major segments namely- residential, commercial, retail and hotel sectors. Out of all the segments, residential segment has dominated the Hungarian real estate market. In Hungary, some of the major cities which have seen the development of real estate sector have been Budapest, Debrecen, Szeged, Miskolc, Pecs and Gyor. The real estate market has witnessed positive growth in residential market during 2012-2017.
Market Segmentation:
By Residential Real Estate Market: Hungary Residential Real Estate Market has performed exceptionally well in response to increasing demand for homes by growth in number of immigrants, increasing tourists density in the country and reduction in VAT rate. Major dwellings constructed in Hungary are in other towns and country towns as price of land is low as compared to price of land in Budapest. Hungary residential real estate market is supported by economic growth and influence of increasing expat population. Overall residential market volume has increased at a positive CAGR during the period 2012-2017.
By Commercial Real Estate Market: Hungary Commercial Real Estate Market majorly comprises of office space that has witnessed a growth during 2012-2017 as many multinational companies established themselves in Hungary, attracted by the strong business activities and robust economic growth. Occupancy rate has reached to record high rates in 2017 for commercial office space. The commercial rental market is mainly concentrated in Budapest, where the SSC (shared service centers) and BPO sector with the introduction of major companies like British Telecom and others hold the majority of transactions in its commercial market.
By Retail Real Estate Market: Hungary retail real estate market volume has registered a positive slow growth during the period 2012-2017. Hungary retail real estate market has been supported by real income of the citizens and the majority of young population. Budapest retail market is mostly dominated by 3 malls- West End City Center, Corvin Plaza and MOM Park along with high street market. There was no new supply for years 2014-2016 as there was plaza ban on new construction above 300 square meters of property in Hungary from 2012-2014.
By Hotel Real Estate Market: Hungary Hotel real estate market has showcased a rapid surge in gross income generation from accommodation fee at a double digit CAGR during 2012-2017. Major chunk of income from accommodation fee of Hungary hotel real estate comes from 4-star and 3-star hotels in 2016.
Snapshot on Hungary Online Real Estate Market:
In Hungary, online property portals are increasingly becoming a platform for research on buying, selling or leasing residential, commercial, retail and other kind of properties. Revenue for these portals is derived by offering a packaged deal to brokers, developers and professional agents, as well as several online property agents. The basic business model for these portals is to charge commission once the property is bought or sold. The online property market in Hungary has been dominated by a few real estate portals such as Themovechannel.com, Primelocation.com and Zoopla.CO.UK, Mybudapest.home.com, Alberlet.hu, Hungarianhouses.com, Tranio.com, Budapestrent.com, Flat-Rent-Hungary.com and Mhomes.hu. The sales proportion of real estate properties through online market has consistently grown owing to rising internet penetration, growing demand of internet among youngsters, surging youth population and opportunities by government infrastructure investments. The online market is anticipated to be vibrant during the upcoming years, boosted by growing number of property portals.
For more information on the research report, refer to below link:
Related Reports:
The Government of Qatar is focusing a lot on construction to meet the demand of tourists visiting Qatar in 2022 and meet the need of residence owing to increasing population.
Indonesia real estate market in terms of competition is extremely fragmented since there are a large number of local small builders who operate within the cities. However, Indonesia property sector has continued to be dominated by several big developers.
Metro Manila contributes the largest share in the Philippines real estate. The retail sector contributed to the highest market share in the Manila real estate market accounting for ~ % share in 2015.
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249