In contrast to real estate investments, investments coming to Hungary set another record

By: Trademagazin Date: 2023. 11. 20. 09:48

The real estate investment turnover decreased significantly this year, the global real estate development market closed a weak year this year, and the Hungarian market fell the least in the Central and Eastern European region. The decline of 43% in Hungary is smaller than in the large, Western European markets, and the slow recovery from the current low point may begin next year, which may be followed by a rebound in 2025-26 – concluded Ernő Takács, the Real Estate Developers’ Round Table Association, which brings together the largest real estate developers in Hungary ( IFK) president of November 20, XI. At the traditional annual appraisal briefing held on the occasion of Real Estate Development Day.

In contrast to real estate investments, investments coming to Hungary set another record, FDI already exceeds 8 billion euros after last year’s 6.2 billion, mainly thanks to battery factory investments. Among the submarkets, this year brought a slowdown in the office market and a decline in the residential real estate market, mainly due to the high interest rate environment, inflation and recession fears. However, there is an expansion in the industrial real estate market and the hotel segment, and momentum is expected to increase next year, thanks to slowly melting interest rates, economic growth and the resumption of lending.

Last year, the spectacular expansion trend of the domestic real estate investment market, which started after the coronavirus epidemic, came to a halt – reminded Ernő Takács, the president of the Real Estate Developers Round Association (IFK), which brings together the largest real estate developers in Hungary. Development was halted by the war in Ukraine, the energy crisis, rising inflation worldwide, the decline in economic performance, the strengthening of recession fears, and monetary tightening. The volume of real estate investment fell to the level during the coronavirus epidemic, but the industry was still confident that this year the catch-up to the record performance of 2019 would continue, albeit at a slower pace.