Mass investments to start in 2022 in Budapest’s hotel sector
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Even though the depreciation of hotels in Budapest continues, for the time being, investors are more interested in other Western European cities. Presumably, mass investments in the hotel sector of the Hungarian capital can start at the end of 2022, with new trends to appear.
Hotel investments have already started in Western Europe where international and local investors are buying more and more hotels in Italian, Spanish, and French cities. The outstanding willingness to buy is due to the fact that in the declining European markets, investors can now get access to hotels offered for sale at super-affordable prices.
Currently, the ratio of risk and return in Budapest is not suitable for international investors. As for now, they prefer to make investments in the big cities of Western Europe, including Barcelona, ​​Amsterdam, or major German cities where the market recovery is predicted to be faster.
As we previously reported, it seems that the problem in the Hungarian hotel sector is much bigger than what the experts predicted 6–8 months ago. As a result of the pandemic, investments have slowed down in the Hungarian capital, which is further aggravated by labour shortages and the rising prices of building materials. However,
larger rates of sales could come in 2022, as this is the time when it is expected that the depreciation of hotels in Budapest will reach the level that will favour mass investments.
Therefore, the full recovery of the hotel sector is forecast for 2024-2025.