Did you know that in 2018:
- 65% of transactions are tied to domestic investors?
- did 42% of the transactions have no financial collateral?
- in 63% of transactions, was the warranty period set by the parties 24 months or less?
- In 42% of transactions, was the liability of the buyer for breach of liability limited to less than 20% of the purchase price?
Experts from DLA Piper Hungary have collected the most relevant transactions to reflect market trends well in terms of customer, seller, investor, or insurance.
On this basis, yields have declined compared to recent years, although they are still outstanding compared to Western Europe.
In addition, although the most important foreign investors are still present, the activities of other players are becoming increasingly important in the Hungarian market: besides the Central European region, the strengthening of Asian participation is an excellent indicator of the maturity of the domestic market for serving such volume investors.
It is also a positive trend that the value of quality work continues to grow despite the fact that, unfortunately, the developer side has to fight not only with labor shortages, but also with increasing construction costs.
Quality development is not only evident in developments but in the entire real estate market , such as the rapid spread of warranties (W&I), the sophistication of the transaction structure and legal documentation.
However, all these are just the main directions in the commercial real estate market - for details, please see our English-language report , which is available at the link below .