Tower Rentals Budapest

Property prices in Hungary set to soar as Europe’s Las Vegas gets the green light

Interest in Hungary among pro-perty investors is set to soar with the news that Plaza Centers is to develop Hungary’s largest casino after being awarded a ga-ming license for its Dream Island scheme in the southern side of the Obuda Island. The €1.5bn (£1.19bn) development is being hailed as Europe’s version of Las Vegas and is predicted to boost Budapest’s attractiveness to investors. In addition to 430,560 sq ft of gaming space, the scheme will include 8 to 10 four and five stars hotels amoun-ting 3,000 hotel rooms, 1,000 leisure apartments, a convention centre for 3,500 delegates, a 1,500 seat opera house, a 3,500 seat multi-purpose theatre and a leisure marina with space for 300 vessels.

According to the real estate consulting Jones Lang LaSalle in Budapest, this news could prevent any future downturn in the Hungarian economy caused by the global credit crunch. On completion, Dream Island will fill this gap for the 350 million people who live within two hours flying time of Budapest, sparing them from long continental flight times and enable them to enjoy, relax, gamble and entertain themselves in a mega resort of the biggest magnitude in Europe.

 

Budapest… a strong Buy-to-Let market

Recent statistics and reports, together with our experience within the investment and rental markets in Budapest, show that Hungary’s capital city is one of the stron-gest buy-to-let markets in Europe.

The latest research published by the Global Property Guide on 2nd July 2008, shows that rental yields in Budapest are among the highest in Europe, with an average 8.09% per year, whilst it ranges Budapest within a good long term investment rating.

Moreover, the increasing number of international companies relocating or expan-ding their presence in Budapest is genera-ting an increasing demand for good quality rental properties for their corporate and ex-pat staff. Budapest is also a universities city, housing some of the largest education and research institutions in Central and Eastern Europe and it welcomes thousands of international students every year, not to forget the increase on local families looking to upgrade to a new and higher quality rental property.

All in all, Budapest shows no sign of a down market, but of a strengthening buy-to-let one.

To make the market even more appealing to foreign investors, the Hungarian government recently introduced some changes to the tax system, whereby investors can reduce their income tax liability to almost zero, making Budapest a unique tax efficient buy-to-let market.

 

Tower, leading the corporate rentals market

Our Corporate Rentals Department has achieved great success over the last few months. We have experienced an increasing demand for corporate rentals from large international companies already set-up or planning to relocate to Budapest. Back in March this year, we signed an agreement with Auchan’s Dunakeszi branch, whereby we provide them with short and long term accommodation for their staff coming over to their training center in Budapest. As a result of this unique agreement, all available apartments within the Szent Laszlo 80 project are currently rented to the Auchan staff, providing our investors with the fastest ever rental agreement for their apartment. This way, our Szent Laszlo 80 landlords started renting their apartments almost upon signing the property handover.

Our Corporate Rentals Department is always working hard to convince corporate tenants to rent our portfolio of buy-to-let properties, ensuring we always keep our occupancy ratio at the highest level, giving our clients highest possible returns on their property investment.

 

Tower manages over 400 properties in Budapest

The Tower Property Group is the No. 1 Property Investment and Management Company in Budapest. Such a statement is always based on expe-rience and figures. After over 5 years within the Budapest property market, our company has acquired the expe-rience and know-how to source the best property investments for our clients and to manage it in the most professional and profitable way for them.

More than 400 landlords currently trust their property investments to Tower, enabling us to create the most complete portfolio of buy-to-let properties and providing a wide range of rental properties to the market. We are now maintaining an average 89% occupancy ratio on our ren-tal properties, making sure that our investors always get the highest ROI.

 

Launch of Váci Business Suites

First week of May 2008 was the date chosen by the Tower Property Group to officially launch its newest project, Vaci Business Suites, a unique Buy-to-Let property investment with a 5 years leaseback contract. This new project has been carefully designed to provide investors with a secure investment return over a 5 year period, taking advantage of the new tax system recently introduced in Hungary and the strengths of Tower within the rental market in Budapest.

After the official launch, the project is attracting more and more interest from both, local and international investors, with more than 50% of the project sold within the first 5 weeks. Customers are assured a 5% net rental yield every year for the next 5 years, making VBS the No.1 But-to-Let property investment in Central Europe.

 

Hungary, picked for 800 Million EUR Mercedes plant

Hungary has been recently chosen for a new Mercedes plant by the Daimler Group. The new auto plant, employing 2,500 when fully operational, will be set up in Kecskemét, central Hungary, to manufacture the new A and B class models. Daimler is expected to sign a statement of intent with Hungarian government representatives shortly. According to the Hungarian Prime Minister, the factory is expected to start manufacture in 2012.

Against all expectations Hungary won the business of the world class manufacturer instead of Romania. Romania was thought be the best candidate, due to its very low wages. The Daimler Group indicated that the highly developed infrastructure, highly qualified employees and very prefe-rential tax incentives made Hungary the best choice.

With its total value of EUR 800 Million, the vast project is the largest so far in Hungary. Therefore it is not impossible that the news may have played a role in the strengthening of the Hungarian currency.

“A plant in Hungary will meet our corporation’s high requirements in respect of quality and quantity,” Dieter Zetsche, Chief Executive Officer at Mercedes-Benz Cars, told the German-Hungarian Chamber of Industry and Commerce. The latter welcomes the move as an investment decision that shows Hungary is a competitive location for high-tech manufacturing projects.

PHOTO TEXT: CEO of German car giant Daimler Dieter Zetsche

 

Great news at Ferihegy airport

Budapest International Ferihegy Airport is hugely developing, both in traffic and infrastructures. And it is not only the airport itself, but also the surrounding area experiencing a vast regeneration process. Picking up some of the most relevant news, we can highlight the expansion of the logistic park Europolis, which is planning to add 25.000 m2 to the existing 65.000m2, based on demand by current tenants for additional space.

Also the first step has been taken for a new high-speed rail to link Ferihegy Airport with Budapest city centre, with stops planned to be located near the Western Train Station, in District 6, and the National Theatre, in District 9. To cope with the increase on air traffic, Budapest Airport plans to spend 65 billion HUF on developing the infrastructure of Ferihegy Airport within the next few years.

To this end, the company will establish a new cargo city, construct an Airport City inclu-ding, amongst other facilities, a four-star hotel with 250 rooms, and increase the airport’s airside capacity.

 

Andrassy welcomes top fashion brands

After the recent opening of Luis Vuitton in Andrassy, Emporio Armani has just announced its intention to open its first Emporio Armani store and Emporio Armani Cafe in Hungary’s capital city, also on Andrassy Avenue. These exclusive brands are to widen the range of luxury shops in Budapest, where the “chic and exclusive” shoppers can already enjoy their shopping in luxury stores like Ermenegildo Zegna, Hugo Boss, Bulgari, Thomas Burberrys and Tommy Hilfiger.

On top of the Armani store, the World Heritage Andrassy Avenue is also awaiting the opening of Gucci and Roberto Cavalli stores. It is not only the infrastructure or the public transportation that is being improved; it is just a fact that Andrassy

 

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