Hungary Real Estate Report Q1 2013

The Hungary real estate report examines the commercial office, retail, industrial and construction
segments throughout the country in the context of continuing domestic and regional economic weakness.
With a focus on the principal cities of Budapest, Gyor and Debrecen, the report covers the rental market
performance in terms of rates and yields over the past 18 months and examines how best to maximise
returns in the commercial real estate market, while minimising investment risk and exploring the impact
of government austerity on a market already characterised by a static supply and demand dynamic.
Hungary’s real estate market, like so many others, was seriously damaged by the global financial crisis.
An uptick in demand for office and retail space, as well as industrial property will only arise in tandem
with a broader economic recovery. Nevertheless, this is once again under threat as Hungary’s economy
continues to struggle as a combination of slowing economic activity across Western Europe and severe
financial stresses at home weigh heavily on all components of GDP by expenditure.
In spite of the weak economic backdrop, and a construction sector which continues to be under pressure,
our latest data collection from Hungary – covering the first six months of 2012 – has revealed a
cautiously optimistic outlook over the medium term. While our indicators were not unanimously positive,
the landscape represents a fairly steady start to 2012 as the numbers have remained broadly constant, with
Gyor holding the most promise in terms of annualised performance. We do not anticipate an immediate
change in fortunes for the sector, but believe that by 2013 the country will see a much improved pipeline
and real estate outlook.
Key Points:
• The continued deterioration in economic activity in the eurozone, and the failure of the
government to thus far reach an external financing arrangement with the IMF/EU continue to
weigh on all areas of the economy. As it stands, net exports will provide some degree of support
to headline growth this year given how weak import demand has been, however, risks to our
growth medium-term growth forecasts lie firmly to the downside.
• The Hungarian construction sector will become a victim of the country’s poor macroeconomic
conditions and register yet another year of sharp contraction in 2012. In line with our
increasingly pessimistic outlook for macroeconomic growth in the country, we have revised
down our forecast for the construction sector in 2012 from a marginal 0.2% year-on-year (y-oy)
contraction to a 5.5% y-o-y decline (in real terms). However, we expect the sector to tread on
a positive growth territory during the rest of our 10-year forecast period, helped by favourable
base effects and investments in infrastructure and non-residential construction projects.
• We expect the infrastructure segment to increase its contribution to the construction industry
value to 48.4% by the end of our 10-year forecast period in 2021, compared with its estimated
share of 46.4% in 2011. The use of EU co-financed infrastructure investments will be the key
driver of growth in the sector. Meanwhile, growth in the residential and non-residential subsector
will average 2.5% y-o-y between 2013 and 2021, primarily helped by private sector
investments in non-residential buildings.

Hungary Real Estate Report Q1 2013

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
Hungary Real Estate/Construction SWOT ............................................................................................................................................................ 7
Hungary Political SWOT ...................................................................................................................................................................................... 8
Hungary Economic SWOT .................................................................................................................................................................................... 9
Hungary Business Environment SWOT ............................................................................................................................................................... 10
Real Estate Market Overview ........................................................................................................................ 11
Real Estate Market Analysis - Office ........................................................................................................... 13
Rents and Yields .................................................................................................................................................................................................. 13
Table: Historic Rents - 2011-2012 (EUR per m2/month) .................................................................................................................................... 13
Table: Net Yield, 2011-2012 (%) ........................................................................................................................................................................ 13
Table: Terms Of Rental Contract/Leases - H112 ............................................................................................................................................... 13
Supply And Demand............................................................................................................................................................................................ 14
Industry Forecast Scenario ...................................................................................................................................................................................... 14
Table: Forecast Rents - (EUR per m2/month) ..................................................................................................................................................... 14
Table: Forecast Net Yield, 2010-2017 (%) ......................................................................................................................................................... 14
Real Estate Market Analysis - Retail ............................................................................................................ 15
Rents and Yields .................................................................................................................................................................................................. 15
Table: Historic Rents - 2011-2012 (EUR per m2/month) .................................................................................................................................... 15
Table: Net Yield, 2011-2012 (%) ........................................................................................................................................................................ 15
Table: Terms Of Rental Contract/Leases - H112 ............................................................................................................................................... 15
Supply And Demand............................................................................................................................................................................................ 16
Industry Forecast Scenario ...................................................................................................................................................................................... 18
Table: Forecast Rents - (EUR per m2/month) ..................................................................................................................................................... 18
Table: Forecast Net Yield, 2010-2017 (%) ......................................................................................................................................................... 19
Table: Retail Indicators, 2009-2016 ................................................................................................................................................................... 19
Real Estate Market Analysis - Industrial ..................................................................................................... 20
Rents and Yields .................................................................................................................................................................................................. 20
Table: Historic Rents - 2011-2012 (EUR per m2/month) .................................................................................................................................... 20
Table: Net Yield, 2011-2012 (%) ........................................................................................................................................................................ 20
Table: Terms Of Rental Contract/Leases - H112 ............................................................................................................................................... 20
Supply And Demand............................................................................................................................................................................................ 20
Industry Forecast Scenario ...................................................................................................................................................................................... 21
Table: Forecast Rents - (EUR per m2/month) ..................................................................................................................................................... 21
Table: Forecast Net Yield, 2010-2017 (%) ......................................................................................................................................................... 21
Forecast Scenarios ....................................................................................................................................... 22
Infrastructure Report ............................................................................................................................................................................................... 22
Table: Hungary Construction And Infrastructure Industry Data, 2009-2016 ...................................................................................................... 22
Table: Hungary Construction And Infrastructure Long-Term Forecast, 2014-2021 ........................................................................................... 23
Construction And Infrastructure Forecast Scenario ........................................................................................................................................... 25
Macroeconomic Outlook .......................................................................................................................................................................................... 26
Table: Hungary - Economic Activity .................................................................................................................................................................. 29
Risk/Reward Ratings ..................................................................................................................................... 30
Real Estate/Construction Risk/Reward Ratings ....................................................................................................................................................... 30
Table: Real Estate Risk/Reward Ratings ............................................................................................................................................................. 30
Hungary's Business Environment ............................................................................................................................................................................ 30
Table: BMI Business And Operation Risk Ratings .............................................................................................................................................. 30
Institutions .......................................................................................................................................................................................................... 32
Table: BMI Legal Framework Rating ................................................................................................................................................................. 32
Infrastructure ...................................................................................................................................................................................................... 34
Table: Labour Force Quality .............................................................................................................................................................................. 35
Market Orientation ............................................................................................................................................................................................. 37
Table: Emerging Europe - Annual FDI Inflows ................................................................................................................................................. 37
Table: Trade And Investment Ratings ................................................................................................................................................................. 39
Operational Risk ................................................................................................................................................................................................. 41
Competitive Landscape ................................................................................................................................ 42
Company Profiles .......................................................................................................................................... 44
Budapesti Ingatlan Nyrt ...................................................................................................................................................................................... 44
Casaro-Hungary ................................................................................................................................................................................................. 44
Fomterv .............................................................................................................................................................................................................. 46
KÉSZ Central European Building & Construction ............................................................................................................................................. 47
SCD Group ......................................................................................................................................................................................................... 48
TriGranit Development Corporation .................................................................................................................................................................. 49
Vegyépszer .......................................................................................................................................................................................................... 50
Demographic Data ......................................................................................................................................... 51
Table: Hungary's Population By Age Group, 1990-2020 ('000) .......................................................................................................................... 52
Table: Hungary's Population By Age Group, 1990-2020 (% of total) ................................................................................................................. 52
Table: Hungary's Key Population Ratios, 1990-2020 ......................................................................................................................................... 53
Table: Hungary's Rural And Urban Population, 1990-2020 ............................................................................................................................... 54
BMI Methodology .......................................................................................................................................... 55
How We Generate Our Industry Forecasts .............................................................................................................................................................. 55
Construction Industry .............................................................................................................................................................................................. 56
Bank Lending ........................................................................................................................................................................................................... 57
Real Estate/Construction Business Environment Rating .......................................................................................................................................... 57
Table: Weighting Of Indicators .......................................................................................................................................................................... 58
Sources .................................................................................................................................................................................................................... 60Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
Indonesia Consumer Electronics Market SWOT ................................................................................................................................................... 7
Indonesia Electronics Industry SWOT .................................................................................................................................................................. 8
Indonesia Political SWOT ..................................................................................................................................................................................... 9
Indonesia Economic SWOT ................................................................................................................................................................................ 10
Indonesia Business Environment SWOT ............................................................................................................................................................. 11
Asia Risk/Reward Ratings ............................................................................................................................. 12
Table: Asia Pacific CE Risk/Reward Ratings, Q113 ........................................................................................................................................... 15
Consumer Electronics Market ...................................................................................................................... 16
Computers........................................................................................................................................................................................................... 17
Table: Computer Spending By Sector (estimate) ................................................................................................................................................ 17
Table: Computer Sales, 2010-2017 ..................................................................................................................................................................... 20
AV ....................................................................................................................................................................................................................... 20
Table: AV Demand, 2010-2017........................................................................................................................................................................... 23
Mobile Handsets ................................................................................................................................................................................................. 23
Table: Mobile Telephone Industry Sales, 2010-2017 .......................................................................................................................................... 27
Consumer Electronics Industry .................................................................................................................... 28
Overview .................................................................................................................................................................................................................. 28
Industry Development ......................................................................................................................................................................................... 28
Table: Electronics Industry Overview, 2010-2017 .............................................................................................................................................. 28
Computers........................................................................................................................................................................................................... 32
Table: Computer Production And Exports, 2010-2017 ....................................................................................................................................... 32
AV ....................................................................................................................................................................................................................... 32
Table: AV Production, 2010-2017 ...................................................................................................................................................................... 33
Telecommunications ........................................................................................................................................................................................... 33
Table: Manufacturing, 2010-2017 ...................................................................................................................................................................... 34
Industry Forecast Scenario ........................................................................................................................... 35
Table: Consumer Electronics Overview, 2010-2017 ........................................................................................................................................... 36
Industry Developments................................................................................................................................. 37
Macroeconomic Forecast .............................................................................................................................. 39
Table: Economic Activity , 2011-2016 ................................................................................................................................................................ 41
Competitive Landscape ................................................................................................................................ 42
Computers........................................................................................................................................................................................................... 42
AV ....................................................................................................................................................................................................................... 44
Handsets ............................................................................................................................................................................................................. 46
Country Snapshot ......................................................................................................................................... 51
Table: Indonesia's Population By Age Group, 1990-2020 ('000) ......................................................................................................................... 52
Table: Indonesia's Population By Age Group, 1990-2020 (% of total) ............................................................................................................... 53
Table: Indonesia's Key Population Ratios, 1990-2020 ...................................................................................................................................... 54
Table: Indonesia's Rural And Urban Population, 1990-2020 .............................................................................................................................. 54
BMI Methodology .......................................................................................................................................... 55
How We Generate Our Industry Forecasts ......................................................................................................................................................... 55
Electronics Industry ............................................................................................................................................................................................ 56
Sources ............................................................................................................................................................................................................... 56BMI Industry View ........................................................................................................................................... 7
SWOT Analysis ............................................................................................................................................... 8
Indonesia Food Industry SWOT ............................................................................................................................................................................ 8
Indonesia Drink Industry SWOT ........................................................................................................................................................................... 9
Indonesia Mass Grocery Retail Industry SWOT.................................................................................................................................................. 10
Business Environment ................................................................................................................................. 11
BMI's Core Global Industry Views .......................................................................................................................................................................... 11
Table: Core Views .............................................................................................................................................................................................. 19
Asia Pacific Food & Drink Risk/Reward Ratings .................................................................................................................................................... 20
Table: Food & Drink Risk/Reward Sub-Factor Ratings, Q113 (score out of 10) ................................................................................................. 21
Table: Asia Pacific Food & Drink Risk/Reward Ratings, Q113........................................................................................................................... 24
Indonesia's Risk/Reward Rating ......................................................................................................................................................................... 25
Macroeconomic Outlook .......................................................................................................................................................................................... 26
Table: Economic Activity .................................................................................................................................................................................... 28
Industry Forecast Scenario .......................................................................................................................... 29
Consumer Outlook ................................................................................................................................................................................................... 29
Food ......................................................................................................................................................................................................................... 31
Food Consumption .............................................................................................................................................................................................. 31
Table: Food Consumption Indicators - Historical Data & Forecasts, 2010-2017 .............................................................................................. 32
Canned Food ...................................................................................................................................................................................................... 32
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, 2010-2017 ........................................................................................ 33
Confectionery ...................................................................................................................................................................................................... 33
Table: Confectionery Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017 ............................................................... 34
Drink ........................................................................................................................................................................................................................ 37
Hot Drinks .......................................................................................................................................................................................................... 37
Table: Hot Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017............................................................................................ 38
Alcoholic Drinks ................................................................................................................................................................................................. 38
Table: Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017 .................................................................................. 39
Soft Drinks .......................................................................................................................................................................................................... 40
Table: Soft Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017 ........................................................................................... 42
Mass Grocery Retail ................................................................................................................................................................................................ 43
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts, 2010-2017 .................................................................................. 44
Table: Grocery Retail Sales by Format (%) ........................................................................................................................................................ 44
Trade ........................................................................................................................................................................................................................ 45
Table: Food & Drink Trade Indicators - Historical Data & Forecasts, 2010-2017 ............................................................................................ 45
Food ............................................................................................................................................................... 46
Key Industry Trends And Developments .................................................................................................................................................................. 46
Fonterra Sees Strong Dairy Potential ................................................................................................................................................................. 46
Tapping Into The Fast-Food Potential ................................................................................................................................................................ 46
Market Overview ...................................................................................................................................................................................................... 47
Food Production ................................................................................................................................................................................................. 47
Confectionery ...................................................................................................................................................................................................... 48
Halal ................................................................................................................................................................................................................... 48
Agriculture .......................................................................................................................................................................................................... 49
Organics ............................................................................................................................................................................................................. 49
Drink ............................................................................................................................................................... 50
Key Industry Trends And Developments .................................................................................................................................................................. 50
Heineken Seals Control Of APB ...........................................

• Most Effective Treatments For Diabetes
  Diabetes is a chronic metabolic disease leading to high blood sugar because or troubled insulin secretion. There are two types of diabetes – type 1 and type 2. Type 1 or juvenile diabetes causes when the body fails to produce enough insulin. Type 2 on the other hand causes when the body cells have lower [...]
• Importance of Educational Books Publishing
  Education plays a crucial role in overall development of a person and the entire society. Students across the globe and various educational levels depend on study material. Whether they are textbooks, reference books or workbooks, they are in a constant need for systematic educational books. Educational book publishing is a versatile crucial branch of book [...]
• How to Treat Arthritis Effectively ?
  The word arthritis stands for inflammation of joints. It is an umbrella term for over 100 diseases that cause pain, discomfort, disability and several other symptoms amongst individuals. Osteoarthritis is one of the most common types of arthritis, which affects elderly. Several other forms of this disease may affect individuals at a very young age [...]
• Benefits of Set top Boxes Amidst the Wave of Digitization
  A set top unit or box is a useful device that provides content through television sets. Set top box is a term that refers to a device, which is used for broadcasting the content. It is different from the devices that help simple recording of media, such as DVDs. Cable operators and satellite companies provide [...]
• What are the Treatments for Alzheimer’s Disease ?
  Alzheimer’s disease is one of the most common types of dementia. Dementia is the condition defined by significant loss of global cognitive ability in a healthy person. This loss is beyond the normal aging process and it only worsens with the age. Alzheimer’s disease is a serious mental health condition and a progressive brain disease [...]

• Foresight 2020: Network Development in a Multi-Channel World

London, May 24th, 2013 – As the costs of branch banking increased in the 80s and 90s, banks attempted to reduce costs by reliance on centers, mobile and online channels to lower costs and improve service. The digitization of banks …

• Italy Healthcare Industry Regulatory and Reimbursement Landscape

The Italian Pharmaceutical Market has Declined in Value Terms Due to the Introduction of Price Cuts and Increasing Focus on the Usage of Generic Drugs in Order to Rein in Ballooning Healthcare Expenditure   The pharmaceutical market (at the consumer …

• Men’s Health & Midlife Women Consumer Market Research Reports

RnRMarketResearch.com offers new market research reports on masculinity Vs health and midlife women embracing power and avoiding invisibility in global consumer markets.   “Masculinity Vs Health: Challenges and Opportunities” and “Midlife Women: Embracing Power and Avoiding Invisibility in Global Consumer …

• France Healthcare Market Regulatory and Reimbursement Landscape

France has a Mature Healthcare Market as it Offers Universal Public Access to Healthcare Facilities and Insurance. The Increasing Disease Burden and the Launch of New Products will Drive the Growth of the Pharmaceutical Market; however, Increasing Focus on Generics …

• Lebanon Cards and Payments Industry Worth 2.4 Million Cards By 2017

Between 2008 and 2012, Lebanon’s cards industry recorded a CAGR of 4.89% in terms of volume and the total number of cards increased from 1.6 million to 2.0 million. The industry has been forecasted to grow at a CAGR of …

Philippines Real Estate Report Q3 2013

"......acroeconomic headwinds are on the horizon. With a focus on the principal cities of Manila, Makati City and Cebu City, the report covers the rental market performance in terms of rates and yields. It also examines how best to maximise returns in the c......"

Qatar Real Estate Report Q3 2013

"......h a focus on the principal cities of Doha, Al-Khor and Al-Wakra, the report covers rental market performance in terms of rates and yields over the past 24 months and examines how best to maximise returns in the commercial real estate market, while mi......"

Romania Real Estate Report Q3 2013

"......ich expanded by an estimated 5.7% year-on-year (y-o-y) in 2012 and is set to see real growth of 4.7% in 2013. An increase in pipeline dynamism should help to re-invigorate the Commercial Real Estate sector as it continues to suffer the after effects ......"

South Korea Real Estate Report Q3 2013

"......ities of Daegu, Busan and Seoul, the report covers the country's rental market performance in terms of rates and yields and examines how best to maximise returns in the commercial real estate market while minimising investment risk with the country's......"

Germany Real Estate Report Q3 2013

"...... Munich, the report covers the rental market performance in terms of rates and yields over the past 24 months, and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact o......"