Info centre News items & press releases Big recession on the newly built dwelling market of Budapest 
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| Big recession on the newly built dwelling market of Budapest |
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9 March 2009 - Ecorys Hungary has prepared a list of the most successful actors on the market of newly built dwellings in Budapest for the year 2008. The results are in line with the global trends, it shows a dramatic decline on the market of the capital. The most successful developers were the ones that could market more than 100 residential units. In 2008, developers could sale 2.500 newly built flats in Budapest, which is greater than a 50% decrease compared to the results of 2007, since that time the number of sold units ran over 5300. In prior years, 27 developers could sell over a 100 units, while this year there were only 15 of them being so successful to hit the magic number. Residential developers in Budapest based on the number of residential units they marketed
There were several companies that appeared last year on the market with a strong background support and optimistic vision, still some of them had to pack up sooner they thought about it. Similarly to last year’s survey the 10 top developers were mainly Hungarian and Israeli. It is true, that their highly ranked position are because of large-scale successful projects started years before and at present their action is all about finishing a next phase of the same development. The top first actor of the former two years list is the Hungarian based Cordia Hungary Plc. who could preserve its leading position because of its results reached at the end of the year. The company has continued the retailing of the Corvin Promenade project, after the 100% sold Fontana house, City Garden, Sun Resort and Park Residence projects. In addition, the company managed to increase the number of sold units up to 60% regarding its XIV. district Cordia Thermal Zugló and the XI. district Cordia Terrace Residence projects. The second developer after Cordia is the Olimpia Group that could preserve its prior sales position thanked to its four large unit projects. The leading investment of the company is the Mandarin Garden which has done a great job as it did last year, besides the project located in the XI. district, the company is also present in the XIII. (Tüzér Garden), XIV. (Városliget Apartment house), and XVIII. (Magnólia Residential Park) districts as well. GB Europe Real-estate is the third on the list this year, which was established by Benyakar Israel and Gindi Group in 2005, they were being active in Israel, the United States and other European countries before Hungary. In Budapest they firstly debuted with the Cyprus house and Dune terrace residential park (prior Fadesa Danubio Park) completed through the D&B Real Estate. Number of developers that sold more than 100 flats and the number of flats they sold in total in the past three years
Source: ECORYS Hungary survey Over analyzing the statistics of the past three years, it is visible that there is an effect of the credit market crisis erupted in the last. On the market you can not only realize a drastic sale decrease, but also a market concentration has evolved since a number of developers were able to repeat their 2007 sales results even in this narrowing market situation. Based on the number of sold flats onto a single developer the results are: 172 flats in 2006, 204 flats in 2007 and 168 flats in 2008 so it can be stated that there isn’t a dramatic decrease. The regional scattering of the sold flats is just about the same as last year, the traditionally popular territories gave the best results (the largest numbers) in 2008 as they did in previous years. The most dwellings were marketed in the XIII. district, just slightly in front of the VIII. and XIV. districts. The losers of last year are the XI. district where the marketed dwelling results were 50% less, however the IX., XVI., and XXII. districts brought also poor results. Residential sales in 2008 of developers that sold over 100 flats separated according to districts
Based on the summing up it is noticeable that the most active districts remained in position therefore the most units were sold in the XIII., VIII. and in the XIV. districts. The list is still lead by Cordia and followed Olimpia Group and GB Europe, while Csizy & Lukács, the AL Holding and the Autóker has performed badly. Due to the crisis situation it can be expected that there will be less developers competing to be on the list next year. The survey of 2008 has been completed from public information sources, from data supply of developers and based on personal surveys of Ecorys Hungary. The survey contains the total values of sold and reserved flats. Among the analyzed projects there are previously delivered developments that were still to be marketed in 2008 and it also includes projects under planning or construction where the developer has already done presales. The graphs are only informative. For more information: ECORYS Hungary |
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