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Sustainability: Surprise from the Developers of Gigantic Agora Office Complex2017.09.15

Sustainability: Surprise from the Developers of Gigantic Agora Office Complex

Agora Budapest project is in the making since this spring. The first phase of the office complex built at the Pest side of the Árpád Bridge is planned to be finished by 2019, and the completion of the entire project is expected to take place in 2023. However, there was no need to wait so long for the area around the construction to be built up: until the first stage is fulfilled, a huge public park will make the construction process more pleasant for the passers-by. The contractor HB Reavis is planning on keeping the temporary park open for about a year.

The project is a five-office complex that is expected to attract a number of retail outlets. Although, for now there are no investors that are ready for built-in high-rise buildings, however, Örs Kigyóssy, HB Reavis Hungary's acquisition and development director is still confident. When responding to the Portfolio, he suggested that the market is working dynamically, requests are to be expected, and although no specific contract has been signed, negotiations with several tenants are in progress. They continue to increase their optimistic attitude to their London connections, since it is expected that several London-leaving companies can move their offices to Hungary during Brexit.

The planned price per square meter of the future offices is going to be 4.5-17 euros (4300-5100 forints), which is hoped to bring back the expected market value of the entire project: 140 billion forints.

After all, this park is a pleasant surprise. Though it was previously suggested that may be a shopping center will be connected to the building complex, as the proximity of subway 3 could justify it, it is not yet planned to expand the project in this direction. Besides the creation of the public park there is a plan for establishing a parking lot in the underground garage with 2107 parking spaces, moreover there is plan for building electric filling points and they promised the reparation of nearby bicycle paths. 

HB Reavis found it important for the project to meet the needs of sustainability and well-being, and fit into the city skyline, as well as to create a people-centered place where both employees and passers-by feel themselves comfortable. Creating the current friendly public space perfectly serves this purpose.

Sources:
http://www.portfolio.hu/ingatlan/iroda/egy_3-as_metronyi_osszegbol_epul_at_az_arpad_hid_kornyeke.245424.html
http://www.portfolio.hu/ingatlan/iroda/egy_uj_parkban_setalhatsz_az_egyik_legforgalmasabb_metromegallonal.4.260125.html 
http://www.ujiroda.hu/jon-az-uj-megairoda-egy-kisvarosnyi-ember-befogadasara-alkalmas 

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Optimistic Mood in the Hungarian Commercial Real Estate Market2017.08.31

Optimistic Mood in the Hungarian Commercial Real Estate Market

Hungary emerged as an extremely optimistic country in the region based on the latest results of the retail market mood index. 

The research of The Royal Institution of Chartered Surveyors (RICS) compares the mood of commercial real estate market in various countries, taking into account both the lending and investment sides, and ranks the market atmosphere of the countries based on the results achieved by a cumulative index. Based on the latest results, the most confident atmosphere reigns in Hungary.

Emerging Investor Market

This result is clearly reflected in the fact that Hungary has the region's most dynamically growing investor market. Hungary's result was similar to that of the Czech Republic: both countries gained +46 points in the first quarter of 2017 and Hungary scored only +3 points higher in the second quarter. Within the investor market, the office market grew the most, which growth, according to experts, is expected to remain for about two years. As regards the post-2019 period, the future is uncertain.

What about the Tenants?

The tenant market is skyrocketing too: tenant mood index remained good in the second quarter of this year (+43). Although the first quarter of this year was stronger with its +59 results, even this result surpasses the current dominant mood in the rest of the region. Over the past four years, tenant activity has increased steadily in the office, commercial and industrial sectors as well. However, it is also true that the biggest growth in the last quarter occurred in the office market.

Priorities for Investors

While considering developments, investors are paying particular attention to the building of sustainable, environmentally conscious, cost-effective buildings. In fact, one can successfully increase the value of the property if it has a green certificate. The optimistic mood may drop due to the region-wide problem of employee shortage, but 95% of respondents in the survey conducted by RICS continue to believe that this does not adversely affect the interest of new investors in the market.

Source:
http://www.portfolio.hu/ingatlan/iroda/magyarorszag_mindenkit_maga_moge_utasitott.261571.html

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