Hungaria's commercial investment market is expected to decelerate further in 2007 after dropping about 25% year-onyear to EUR 750 mln in 2006. 'With interest rates rising and the rate of yield compression slowing it is noticeable that investors are having to pay more attention to the risk element of possible transactions,' international consultant King Sturge said. The main causes of the slowdown are the emergence of Romania and Bulgaria as viable investment markets, and the limited amount of investment grade stock available in Hungary.
Hungaria's commercial investment market is expected to decelerate further in 2007 after dropping about 25% year-onyear to EUR 750 mln in 2006. 'With interest rates rising and the rate of yield compression slowing it is noticeable that investors are having to pay more attention to the risk element of possible transactions,' international consultant King Sturge said. The main causes of the slowdown are the emergence of Romania and Bulgaria as viable investment markets, and the limited amount of investment grade stock available in Hungary.
