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Investor Guide to Europe 2014
Despite being smaller in size compared to its
neighbouring markets of the Czech Republic and
Poland, Hungary benefits from a relatively high
share of cross border investment, notably from
austria, Germany and the united-Kingdom. Given its
size volumes are lower though. activity is strongly
focussed on the capital, Budapest, with limited
activity elsewhere.
Hungary has an active domestic investor base, including
private individuals, focussing on smaller office or retail assets
with long leases to international tenants. There is an active
listed sector, but this is comparatively small compared to
private individuals and funds. Institutional investors represent
a small portion of the market, but there are signs of growth.
Given its relative size, access to product can be challenging
at the core end of the market. There is also high activity in
the distressed sector where owner occupiers are able to find
suitable vacant properties at favourable price levels.
offices dominate the investment market, with industrial
volumes also relatively strong. Retail volumes are
comparatively small compared to other European markets.
Market sizing
Hungary
Europe
Invested stock*
(Total stock)
EUR 17bn
(EUR 70bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
2.5%
(2.5%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 0.4bn
(EUR 0.6bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Budapest (Q4 2013)
office
Retail
Industrial
Current Yield
7.75% 7.50% 9.00%
Min/Max
(10y)
5.75-8.30% 5.75-10.00% 6.50-9.80%
Yield
definition
net initial yield
Source : DTZ Research
HunGaRY
* 2012 figures
