Part 3 in our “First-time exhibitors 2016” series
Horizon Development – a Hungarian developer of prime commercial properties – is presenting its Budapest portfolio at EXPO REAL for the first time. Managing Partner Attila Kovács shares valuable background information regarding the company’s aspirations and expectations at the trade fair.
Why are you attending EXPO REAL in 2016?
We have been visiting EXPO REAL in previous years, but this is the first time that we are displaying our portfolio as a co-exhibitor. The opportunity to showcase our ongoing and planned premium buildings on the Budapest stand – co-exhibiting with the Municipality of Budapest, the Hungarian Investment Promotion Agency, and fellow developers from the Hungarian Property Developers’ Roundtable Association – definitely marks a new era for us. In Spring 2016 we officially presented our Váci 1, Promenade Gardens and Szervita Square projects to the international real estate audience, and laid the foundations of our international presence. We truly believe that EXPO REAL will generate quality feedback and substantial professional interest from the global property industry. Apart from using print materials and digital displays to introduce the key features of our sustainable, multifunctional prime properties (office, retail, luxury residential), we will also hold roundtable discussions and project presentations on the Budapest stand.
What is the current real estate situation in Hungary?
Recent changes and trends we experience on the Hungarian commercial property market definitely give reason to be optimistic about our future as developers. In response to the economy having bounced back in Q2 2016, the Budapest office market showed a 53% rise in take-up. The overall vacancy rate demonstrates drastic improvement, with the lowest figures in the past 19 years. Depending on the submarket, rents are either marginally increasing or steady. Investment activity has also intensified, with a recorded €191 million invested into the office sector in Q2 2016. Prime yields currently stand at 6.75%. After a relatively long period of dormant projects and low-intensity development activity, commercial developers are now breaking ground in Budapest for new buildings one after the other. With increased demand for offices, and scarce availability of larger contiguous units (1,000 sqm +), we as developers have a great responsibility to provide ample quality space for tenants seeking new premises with move-in dates in 2018 and 2019. Ever since its establishment, our company, Horizon Development, has focused on the premium segment both in terms of developing projects in the most sought-after downtown Budapest locations, incorporating the most innovative solutions and complex services into its buildings, and involving clients and business partners in the process, thus creating long-term, trust-based relationships. When divesting our mixed-use buildings, the yields we managed to reach were always more attractive than the Budapest market average. Specializing both in heritage protection and modern architecture, and quickly responding to refined and unique demands formulated by market leading companies, the ambitious and visionary leadership of Horizon Development fills a niche on the Hungarian development market.
Will you be holding any special events at EXPO REAL this year?
The Hungarian stand – with Budapest in the spotlight – will be buzzing with expert activities and project presentations in 2016. The stand itself will host two roundtable discussions, both of them followed by a Wine & Champagne Reception with an exclusive selection from St. Andrea Winery.
On 4 October, ’Sport and Tourism Investments in Budapest’ will be the topic among the Deputy Mayor of Budapest, the President of the Hungarian Investment Promotion Agency, our hotel partner and an expert panelist from Colliers International.
On 5 October, ‘Office Investments in Budapest’ will be the main theme, discussed by a panel of five developers active in the region, a law firm specialized in real estate, and CBRE providing relevant market information.
To welcome visitors not only to the stand, but also to our beautiful country, we will be drawing special prizes at the Budapest stand: 10 weekend getaways for 2 people/2 nights, offered by our hotel partner.
The Hungarian capital will also be the focus at the EXPO REAL trade fair, as part of the central conference program. The INVESTMENT LOCATIONS FORUM will tackle the questions of Hungary getting back on the investment map with its increased demand, development boom and rising transaction volumes.