Portfolio.hu writes that the commercial property market is characterised by a positive atmosphere all over the region, but Hungary stands out regarding the amount of optimism in both the occupier and investment market – as it turned out from RICS’s newest Global Commercial Property Monitor.
The RICS (Royal Institution of Chartered Surveyors) examines, surveys the commercial property market of several countries. Their global commercial property monitors are the leading indicators of conditions in the commercial property occupier and investor markets around the world.
The investment sentiment index has reached a record in Hungary (+48), thus illustrating the positive atmosphere in the investment market. Experts reported on the increase of investors’ interest in all three segments (office, retail, industrial), but the biggest expansion was registered in the office market. Meanwhile, the supply of property for investment purposes increased in the office sector while falling modestly in the industrial and retail segments.
The Hungarian and Czech markets are the most dynamically improving in the region, the interest in Poland has decreased slightly due to the political imponderability. According to Lóránt Kibédi Varga, CBRE’s Hungarian manager, the current increase will last until 2019, the question is how great the following cyclical decrease will be.
95% of respondents anticipate new investors entering the Hungarian market in the next year, while all respondents agreed that the rate of investors coming from other countries of the region would increase.Photo: www.rics.org
RICS’s occupier sentiment index is still stably in the positive range (+43), even though this is the lowest number from the past two years. The tenant demand kept on growing in all three segments in the last quarter, which means that growth has characterised the market for four years now.
Meanwhile, the availability of leasable space declined, which led to the decrease of discounts given to tenants. The projections concerning the average rental price on the market are similar to the previous quarter, coming in at 3.5%. This will keep on facilitating estate development activity, with the office sector seeing the most significant quarterly rise.
The European economy is strongly improving, but low unemployment rates can set back further development. The main consequence of the shortage of work force characterising many segments of economy is that developments cost more than before.
All in all, the experts asked by RICS reported on a positive occupier and investment atmosphere in all countries of the regions, but of course the rate of growth will take different turns in the different countries.