property news

Published: 27-03-2008
Realdeal.hu

Hungarian property market deals surge to €2 billion in 2007

Property sales in Hungary totaled €2 billion last year, two and a half times more than in 2006, according to data released by global real estate adviser DTZ. Two major deals accounted for a third of the total.

The single largest transaction was the sale of the recently opened Arena Plaza by Israeli property developer Plaza Centers. The United Kingdom's AIM Symmetry Fund, the buyer, paid €380 million for Hungary's latest and as yet largest shopping complex located near the Keleti railway station.

The sale of the Corvin Atrium, a commercial center currently under construction in District VIII, was the second biggest deal last year. French real estate specialist Klépierre bought the project from Futureal Real Estate Holding Ltd. and pledged to invest €229 million to develop the shopping complex.

The overwhelming majority of the transactions were cut by foreign-owned real estate firms as Hungarian companies made up only 3% of the total, with German, Austrian and French property investors accounting for 40% of all deals in terms of value.

Yields fell to 6%, both on the office and commercial property markets last year, with the former registering a larger, 4 percentage point decline, while the latter only 2 points.

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