On 19 May 2015 ESTON invited its partners for a press conference which was at the same time the opening event of a photo exhibition. At the exhibition organised in the main hall of the Bank Centre visitors can see the photos participating in the contest called EstOnthe Top and among them the winning photo awarded with the “Office panorama of the year” prize until 31 May. Concerning the overview of the real estate market the agency’s managing director, Adorján Salamon and its division leaders Ernő Kiss, Pál Tamás and Dániel Pintér gave a detailed account.
ESTON’s experts were exploring the questions whether spring had finally arrived and whether optimism about the real estate market was justified or if the crisis was over or the market wanted to forget easily. They were also talking about the favourable trends in the property market for investment purposes and the underlying processes behind it. New, big scale investment ideas can be seen with growing project size, at the same time decreasing leaseholder’s rates and seemingly unreasonable promises can also be observed in the changing market.
ESTON’s managing director, Mr. Salamon emphasized the favourable trends and he added that in their consultant team, which is one of the biggest in Budapest, there was an office leasing contract for every week in 2014, furthermore the total office area handled by the agency grew by 20%. Their appraisers worked in a portfolio of 1000 billion HUF total value, and participated in handling investment transactions worth of more than 40 million EUR.
In the changing market environment we also have to keep an eye on the new processes such as the stabilising financial sector and the restart of loans (the expected settlement of failed loans). A clearer, more concentrated market has been formed with fewer but stronger participants. There has been restructuring on the side of investors, developers, service providers (agencies) and financial institutions as well. The low interest rate has made properties attractive for investors again. The premium investments in the market and the state’s role in eliminating the bad loans, furthermore the state’s role in property investments and development are worth to be noted.
The shrinking bond yields have a direct, positive impact on property investments, which result in expanding lease property supply.
One thing is for sure: now is the time for developers, tenants, investors to enter into or return to the market. Economic prospects are positive, financing is taking a positive turn, the decreasing tendency of rental fees has stopped and now they are expected to increase. The vacancy rates in the office buildings handed over in 2012-2014 are rather low (e.g.: in Eiffel Palace: 14,500 m² -9%, Green House: 17,800 m² -2%, Vision Tower North: 11,125 m² -0%).
All in all the prospects are positive and there is definitely life after the crisis.
(Source: Eston)
