Press - Budapest at Property Expos
Five Billion Euros of Development to be Showcased at the Hungarian Booth of EXPO REAL in Munich
In consideration of the rapid progress of those ongoing construction projects exceptional even by European standards, and the highest GDP growth in the region exceeding 5 percent, the organizers of the Hungary-Budapest booth – the Municipality of Budapest, the Hungarian Investment Promotion Agency (HIPA) and the Property Developers’ Roundtable Association (IFK) – can expect significant attention from investors as they present developments with a value of nearly 5 billion euros at the internationally acclaimed EXPO REAL trade show in Munich.
To be held between October 7 and 9 and with over 2,000 exhibitors and nearly 40,000 decision-makers from 75 countries, EXPO REAL remains the largest exhibition for real estate and investment in Europe. Along with property developments in Budapest, projects from significant regional cities such as Debrecen, Kecskemét, Miskolc and Szeged will also be featured at this prestigious real estate event. Taking place on 7 October at 2:00 p.m. a roundtable discussion covering those fundamentals underpinning the dynamic Hungarian market will be held with commentary from Róbert Ésik, CEO of the Hungarian Investment Promotion Agency (HIPA), Ernő Takács, President of IFK, Noah M. Steinberg, Chairman & CEO of WING, Lóránt Kibedi Varga, Managing Director of CBRE Hungary and Attila Sághi, Chief Technical Officer of Városliget Inc. heading the implementation of the Liget Budapest Project. Led by the Publishing Director of fDi Magazine, a publication of the Financial Times, and taking place at the Hungary-Budapest booth, this forum promises to garner widespread international interest.
This combined presence at the forefront of EXPO REAL is reflected by the thriving Hungarian economy, which has exhibited an annual growth rate exceeding 5% for the third consecutive quarter. While several countries within the region have experienced stagnation, Hungary continues to display strong fundaments with the production industry, service sector and construction industry, growing 3.8%, 4.2%, and 28% year-on-year, respectively. Unsurprisingly, this growth acts a major driver for the property development market. In view of these positive indices, the development projects in Budapest and the countryside – representing a total value of EUR 5 billion – are expected to attract a record number of visitors and prospective investors.
As Róbert Ésik, CEO of the Hungarian Investment Promotion Agency (HIPA) pointed out, Hungary had been ranked again among the top 10 investment destinations in the world by Site Selection magazine’s 2019 Global Best to Invest report that covers various investment activities. In addition, the Hungarian Investment Promotion Agency (HIPA) received another accolade when it was voted again the best investment promotion agency of the Central Europe-Central Asia region this year. According to Mr. Ésik, the 43 investment deals initiated over the first six months of 2019, which carry a capital investment value of approximately EUR 2.3 billion, resulted in the creation of 7,274 new jobs. It should be noted that nearly 90% of the projects are being implemented in rural areas with numerous regional cities gradually catching up to Budapest. As a result, national and international investors are provided with a consistently high level of service, qualified workforce, and thriving property markets throughout the country.
Ernő Takács, President of the Property Developers’ Roundtable Association (IFK) describes the Hungarian market as stable with a significant growth potential. According to CBRE’s data, Budapest offers high – at least 5-6% – yields in comparison with other countries within the region. The order volume of the construction industry will amount to approximately EUR 7.5 billion by 2024. In the second quarter, the construction industry accounted for 60% of all investments, representing a year-on-year growth of 22.3%. Additionally, of the approximately 15% growth anticipated between 2019-2021, Hungary is expected to achieve 9.2% of these gains in the first year, clearly outperforming all Western and Eastern European countries. Budapest has become a major target for property development in Europe, considering that 90% of the EUR 2 billion in country-wide investment volume last year was allocated to Hungary’s capital city. Investment volume in the first half of the year reached EUR 462 million, representing a 24% year-on-year growth.
Class-leading projects, government developments, private investments across Budapest, and developments from Debrecen, Kecskemét, Miskolc and Szeged will be showcased at EXPO REAL, signifying Hungary’s power to deliver attractive investments throughout the county. The Liget Budapest Project will be the key project featured at the Hungary-Budapest booth. Representing a government investment of EUR 1 billion, an unparalleled scale of investment across Europe, parts of the project will be delivered before year-end. All new facilities of the Liget Budapest Project will open by 2023, and the refurbished park that will benefit from an increased green area will also be completed at this time. Városliget (City Park), the long-standing public park at the center of the Liget Budapest Project – drawing between 4-4.5 million visitors annually – is expected to increase yearly visitation in the amount of 2.5-3 million as a result of the investment. Puskás Aréna, which upon completion in November 2019, is expected to be the largest-capacity and most advanced stadium in Central Europe, will also be presented as a development’s central attraction.
The trade fair will also feature in-progress development projects by key players in the market, such as Atenor, Forestay Group, Futureal Group, Gránit Pólus Group, Infogroup, HB Reavis, Horizon Development, Property Market and WING. The world’s top property consulting company CBRE, leading audit, tax, and business advisory giant KPMG Hungary, and internationally top-ranking law firm Lakatos, Köves and Partners Law Firm will also be present at the booth. One of the most influential architecture and interior design firms in Central Europe, Budapest-based LIMA Architecture & Interior Design will also be making their debut at the fair.
The website of the Hungary-Budapest booth is available at
High-resolution visuals are available for download at https://www.dropbox.com/sh/bt3ytpeby4ajga2/AABGWbDPDHVzDGCaO8mT5EP9a?dl=0
Budapest, 23/09/2019; the Local Government of Budapest, the Hungarian Investment Promotion Agency (HIPA) and the Property Developers’ Roundtable Association (IFK)
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