ARTICLES LABELLED WITH TAG Hungary

Even though all figures available as well as market sentiment point to further growth on the Hungarian commercial property market, its players still keep looking over their shoulders for potential threats to this growth. According to the speakers of the Portfolio - RICS Valuation and Investment 2017 conference, global politics and potentially rising interest rates pose the biggest threat for CEE. We report from Budapest. 

Colliers International announced that Luke Dawson has returned to Colliers International, effective immediately, in the role of Managing Director & Head of Capital Markets for Central & Eastern Europe (CEE).

Colliers REMS Hungary has been assigned the role of Center Manager including the operational management of the in total 220,000 sqm KÖKI Terminál shopping mall. The assignment also includes the management and technical support of tenant fitting out works.

CA Immo has concluded rental agreements for around 12,000 sqm of office space in Budapest. The agreements include new rentals as well as contract extensions and expansions of existing tenants.

TriGranit, celebrating its 20th anniversary in business in 2017, will this year launch its newest development in Budapest, the Millennium Gardens office building that will provide 37,000 sqm GLA for future tenants from H2 2019 on the banks of the Danube, next to MÜPA and the prospective Congress Centre. In 2017, the company also plans to start the development of Building H, the eighth building in its office complex in Krakow, Bonarka for Business (B4B), providing 10,000 sqm GLA, and plans to start the second phase of Lakeside Park in Slovakia with 13,000 sqm GLA. 

All segments of the Hungarian commercial property market have shown signs of strong growth over the last couple of years. Developers embark on a record number of new projects, but most of them soon realise that construction will take more time and be a lot more costly than they initially anticipated. The latest Tea & Talk session, organised by RICS Hungary in Budapest, helped us understand how rising construction costs and labour shortage in construction can be tackled.

The amount of industrial space leased in key Central and Eastern European markets in 2016 was the largest ever recorded, totalling 5.7 million sqm. This represents a 25% increase over the preceding two years when about 4.5 million sqm was leased. The strong take-up among tenants was linked with an extensive new development at 2.2 million sqm. The findings are based on the research conducted by Cushman & Wakefield, which has been monitoring the industrial property market in the Czech Republic, Poland, Hungary, Romania and Slovakia over an extended period.

Occupier and investment sentiment continues to be positive across Central and Eastern Europe according to the RICS Commercial Property Monitor for Q4 2016. Hungary and the Czech Republic remain the most upbeat markets, with Bulgaria and Croatia also gaining momentum. In Romania the pace of growth seems to be slowing down, although sentiment and projections continue to be broadly positive.

IT Services Hungary, the largest ICT employer of Hungary has decided to move its Budapest site to Skanska’s Mill Park, from Q2 2018 and will occupy approx. 17,300 sqm in the second phase of the complex. In the leasing process, ITSH was advised by Colliers International.

CTP has announced a major energy saving initiative starting in logistics warehouse of DHL in CTPark Budapest South near Üllő. The entire property will be refitted with LED lighting by April 2017.