Hungarian CRE investment volume reached EUR 795 million in H1 2017, in line with the corresponding period last year. The investment turnover is split across the asset classes and is more balanced in 2017 than in previous years due to increased retail and industrial investment activity.

Based on the pipeline of commercial real estate (CRE) sales transactions, we expect the 2017 annual CRE investment volume to reach EUR 1.6 M, i.e. similar level like last year.

All yields moved in by 25-75 bps compared to a year ago; sharpest compression registered for secondary assets. Prime yields have also compressed across all asset classes to 5.75%, 6.25% and 8.00% for retail, office and industrial, respectively. Despite recent yield compression, current yield levels remain above those recorded at the bottom of the previous yield cycle and maintain a clear pricing gap against other core CEE markets.