More western European property investors are learning to love Hungary, Poland and the Czech Republic. According to Chris Bennet, general manager of DTZ Debenham Zadelhoff, central & eastern Europe: “In Hungary the risks for investors are lower than in other East European countries. The taxes are relatively low and the country’s efforts to join the EU have led to changes in the law in the direction of western practice.”
Bennet added that anyone buying high value property in Hungary today will have the best chance of making profits from future increases in value because returns will fall in the medium term, coming closer to West European levels.
Budapest has around 500,000m2 of modern office space and is expected to have another 100,000m2 in the next few years. Office rents are around €23 (DM45) per m2 a month – similar to rents in Berlin.
Prague is similar to Budapest in terms of size and returns and has around 500,000m2 of modern office space and constant demand. The best locations have been at just over €25.6 (DM50) per m2 a month for some years. This makes Prague rents higher cities such as Brussels, Milan or Vienna.
Süddeutsche Zeitung, 08 September 1999
