28 MAR 2018
Magyar Nemzeti Bank and RICS relaunched the questionnaire-based survey research on Budapest’s commercial real estate market, with the review period of second half 2017.
Over the preceding two years the typical rent for commercial properties observed for most property types has increased by more than 15% until the end of the second half of 2017. Prime yields for the office market and shopping centres approached the historical minimum observed in 2007 with 10-25 basis points. Most of the survey respondents expect an increase in demand in both the investment and the tenant markets for commercial properties in the next six months, however, with regards the development activity, the majority of respondents foresee an unchanged level or a drop in demand for several types of property.
A joint initiative by the Magyar Nemzeti Bank (MNB, the Central Bank of Hungary) and RICS, the Market Sentiment Survey, a questionnaire-based survey looking at the developments of the Budapest commercial property market, was recently relaunched for the second half of 2017. The common objective of MNB and RICS is to increase knowledge and consciousness regarding commercial property market developments and improve market transparency.
MNB and RICS would like to thank survey respondents for their valuable contribution to better understanding the current status of the commercial real estate market and improving market transparency. The Market Sentiment Survey monitors market sentiment on a bi-annual basis on the Budapest commercial property market. Respondents provide data on the typical rents, lease periods and yields of the various segments (offices, industrial and logistics, retails, hotels). Furthermore, in connection with the market developments for the period under review and real estate experts’ market expectations for the next six months, the survey includes questions related to changing trends in investor and occupier demand and development activity.