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• CsanádCsűrös–Portfolio.huChiefAnalyst
• KrisztiánHornokMRICS–ReconceptPropertySolutionsPartner
• ÁronHorváth–ELTINGA
• JaroslavKopacMRICS–JonesLangLaSalleKft.NationalDirector–HeadofValuationHungary
• GyörgyLindwurmMRICS–DTZHungaryKft.AssociateDirector–Investment
• AlizMcLean–ELTINGA
• EdinaWinklerMRICS–DTZHungaryKft.SeniorSurveyor–Valuation,RICSHungaryBoardMember
Contributors
MarketSentiment Survey
H2 2013
MMMarketSentimmmeeennnttt SSSuuurrrvvvey
H2 20111333
Cover-Market-SS-05.indd 1 11/25/13 9:34 AM
Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
1
– Compared to earlier surveys, the most significant change is the cautious optimism now
expressed in regards to market trends, particularly towards investment activity. Respondents
still complain about low market liquidity just as much as macroeconomics and politics. How-
ever, optimistic comments are clearly more frequent than before. This latest survey was the first
one in which not a single respondent answered “worse” to the question about future investment
appetite.
– Although the responses regarding overall trend for yields have leaned slightly upward following
the first survey in H2 2011, the most recent answers indicate either stable levels or something
somewhat lower than before. The latter is most notable in the retail sector, where median values
have decreased across the board since H1 2013 (by 25 – 37.5 basis points).
– The market appears generally unchanged in that rental rates are still under pressure in most
sectors. This applies particularly to the office market as well as for cheaper retail segments (i.e.
Mall-type Retail Parks and Big Box units). The Top 5 Shopping Malls is the only category where
currently reported rental rates appear somewhat higher compared to both the first survey as
well as the one from H1 2013. However, relatively weak transparency in this segment and the
usually wide distribution of responses to the surveys must be noted here.
– The Budapest Commercial Property Index (BCP H2 2011 = 100.00) took a small upward turn
since H1 2013 (+0.38, to a level of 90.74), something we would not consider significant. Over-
all, the index has been vacillating somewhere around 10% below its starting level in 2013 – a
decrease driven by rental rates rather than yields. Two retail categories (Big Box stores and Mall-
type Retail Parks) as well as Prime Non-CBD Offices are jointly responsible for over 80% of this
decline.
Highlights
Yield(%)Rent(€/sqm/month)
Typical Minimum Maximum
Top CBD office building 7.50 13.00 12.00 17.00
Prime non-CBD office building 8.00 11.00 10.00 13.50
Good quality non-central office building 8.50 10.00 8.25 11.50
Prime out-of-town logistics center 9.00 3.25 2.50 4.00
Small Business Unit 9.00 4.13 3.13 5.50
Top 5 shopping malls 7.25 37.00 25.00 60.00
Mall-type retail park 8.25 10.00 7.00 14.00
Big box retail 8.13 7.00 5.50 9.00
AllmedianfiguresforH22013Portfolio.hu–RICS–ELTINGAMarket Sentiment Survey | H2 2013
01 Highlights 02 Explanation 03 Index 05 Officesector 09 Retailsector 13 Industrialsector 16 Generalsentiment
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
2 3
Rent (€ / sqm / month)
Distribution oftypical rent responses
median of typicalrent responses
median of maximumrent responses
median of minimumrent responses
Rati
o of
res
pons
es (
%)
Explanatoryexamplechart
The most important output resulting from our research is the rental rates and yields data
(presented in charts similar to the one below). As this publication is based on the opinions
of individuals, these charts reflect the distribution of responses received in respect to a given
variable, i.e. rental rates or yields related to a type of property. Extreme values were removed
and the ranges of the remaining answers were then divided into subsections. The charts
indicate the percentage of responses falling into each subsection, with the median value
marked with a red vertical line (the median is the middle value of the data set when it has
been arranged in ascending order, i.e. the numeric value separating the higher half of the data
from the lower half).
The survey included questions regarding the realistic minimum, maximum, and typical
rental rates in respect to a particular type of property. While we also present all of these in
a tabular format, the rate charts only include the responses to the question of typical rental
rate levels.
Explanation
Based on survey data collected
in the second half of 2011, the
starting value for the Buda-
pest Commercial Property Index
was set at 100.00. Since then,
the Index has taken two major
steps downwards: it fell to the
region of 95-96 points in 2012
and just over 90.00 points in
2013. Recent data confirms this:
remaining within half-a-point
of its previous value, the BCP
Index now stands at 90.74 in
H2 2013.
This index has been calcu-
lated using a compound value
that traces senior real estate
professionals’ assessments
of current yields and rental
rates for the commercial real
estate market. The measure
of value was created by divid-
ing the median typical annual
rental rate by the current yield
for each of the eight sub-seg-
ments represented in the sur-
vey, attributing weights to these
values in order to reflect the
relative volume of each sub-
segment. The results are then
added up and compared against
the other surveys.
The overall decrease since
2011 has clearly been rent-
driven: at a total loss of 9.26
points, the impact of decreas-
ing rental rates has been about
four times more than it has
for yields, with the latter per-
ceived to have either remained
unchanged or grown by a
maximum of 25 basis points,
depending on the market seg-
ment. Obviously, the general
lack of investment transactions
should be taken into consider-
ation when interpreting the sta-
bility of yields.
In terms of market sectors
and property categories, Small
Business Units, Good-Quality
Non-Central Office units, and
Top 5 Shopping Malls have held
up fairly well. In fact, the lat-
ter was the only category to
have made a positive contri-
bution over the period since
2011. The weakest perform-
ers have been Mall-type Retail
Parks, Big-Box Retail units, and
Prime Non-CBD Offices, which
together account for over 80%
of the total decline since the
first survey.
BCPIndex
90.74
BCPIndex(H22011=100)
H22013 90.74
H12013 90.35
H22012 96.53
H12012 95.21
H22011 100
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
4 5
Citing the results of all sur-
veys to date, there have
not been any significant
changes in yield levels,
while rental rates appear
to be on a slight downward
trend.
Sentiment towards yield
levels actually indicates
stabilized values with only
one-off diversions by 13 or
25 basis points for a variety
of office categories.
Although rental rates
have not dropped dramat-
ically, respondents see a
slight downward movement,
which shows that there is
still pressure on rental rates.
The same conclusion can
therefore be drawn for typi-
cal rental rates, which tend
to approximate minimum
rental rates, particularly in
the higher-quality segments.
The survey uses eight hypothetical properties intended to represent major segments of the
Budapest commercial property market. Their descriptions include typical characteristics in
terms of location, quality, size, and occupancy, making them suitable investment products.
When asking about rental rates, hypothetical lease transactions were defined to reflect an
average exchange on the given market in terms of both size and basic conditions. The pho-
tos accompanying each detailed description of buildings are of properties that do not actu-
ally exist on the Hungarian market. However, they have been selected to create the right
impressions of the scenario at hand and to ensure that all respondents consider the same
property categories when answering the questions.
Officesector
Although rental rates have not dropped dra-matically, respondents see a slight downward movement, which shows that there isstill pressure on rental rates.
1.TopCBDofficebuilding
2.Primenon-CBDofficebuilding
3.Goodqualitynon-centralofficebuilding
4.OneoftheTop5shoppingmalls
5.Mall-typeretailpark
6.Bigboxretail
7.Primeout-of-townlogisticscenter
8.SmallBusinessUnit
Categories
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
6 7
1.TopCBDoffice 2.Primenon-CBDoffice
0%
4%
8%
12%
16%
20%
6–7
8–9
10–1
1
12–1
3
14–1
5
16–1
7
18–1
9
20–2
1
22–2
3
24–2
5
median=13
0%4%8%
12%16%20%24%
6–7
8–9
10–1
1
12–1
3
14–1
5
16–1
7
18–1
9
20–2
1
22–2
3
24–2
5
median=11
Rentopinions(€/sqm/m)Rentopinions(€/sqm/m)
0%
5%
10%
15%
20%
25%
30%
5–5.
25
5.5–
5.75
6–6.
25
6.5–
6.75
7–7.
25
7.5–
7.75
8–8.
25
8.5–
8.75
9–9.
25
9.5–
9.75
10–1
0.25
10.5
–10.
75
11–1
1.25
median = 7.5
0% 5%
10% 15% 20% 25% 30% 35% 40% 45%
5–5.
25
5.5–
5.75
6–6.
25
6.5–
6.75
7–7.
25
7.5–
7.75
8–8.
25
8.5–
8.75
9–9.
25
9.5–
9.75
10–1
0.25
10.5
–10.
75
11–1
1.25
median = 8Yieldopinions(%) Yieldopinions(%)
A-category (according to BRF) office building
located within the CBD of Budapest:
– represents the highest standard in
the market in terms of technical
specifications and prestige
– It has an underground garage
– The building is at least 95% let to
multiple tenants,
– at least 80% of the tenants are
international companies
– the average unexpired lease term
is at least 4 years
Market headline rental rate for a specific
letting transaction:
– 500 sqm office space
– 5-year lease term
– strong international tenant
A-category (according to BRF) office building
located in an established, but non-CBD office
location:
– represents high standard in the market
in terms of technical specifications and
prestige
– it has an underground garage
– the building is at least 95% let to
multiple tenants
– at least 80% of the tenants are
international companies
– the average unexpired lease term is at
least 4 years
Market headline rental rate for a specific letting
transaction:
– 500 sqm office space
– 5-year lease term
– strong international tenant
0%
6%
12%
18%
24%
30%
5–6
7–8
9–10
11–1
2
13–1
4
15–1
6
17–1
8
median=10Rentopinions(€/sqm/m)
0%
5%
10%
15%
20%
25%
30%
35%
5–5.
25
5.5–
5.75
6–
6.25
6.
5–6.
75
7–7.
25
7.5–
7.75
8–
8.25
8.
5–8.
75
9–9.
25
9.5–
9.75
10
–10.
25
10.5
–10.
75
11–1
1.25
median = 8.5
Yieldopinions(%)
A-category (according to BRF) office building
located in a non-central office location:
– built no more than 10 years ago
– it has an underground garage
– good public transportation
– the building is at least 95% let to
multiple tenants, not necessarily of
international covenant
– the average unexpired lease term is at
least 3 years
Market headline rental rate for a specific
letting transaction:
– 500 sqm office space
– 4-year lease term
– reliable and financially stable tenant
3.Goodqualitynon-centraloffices
Everybodyiswaiting
fortheelections,duein
Spring2014.Hopefully
wewillseeanimprove-
mentofthe"unortho-
doxeconimicpolicy"in
somewayinthefuture.
RudolfRiedlMRICS,RaiffeisenEvolution
Definitelymoreinterest
sinceQ22013,evenfrom
coreinstitutionalinvestors
whohavebeennotpresent
intheHungarianmarket
forthelastfouryearsor
more.Financingstillre-
mainsaseriousbottleneck.
BenjaminPerez-EllischewitzMRICS,JonesLangLaSalle
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
8 9
Distributionofresponsesin'PrimeNon-CBDofficerent'category
Retail sector, similar to other
categories, showed stabiliza-
tion of yields with continu-
ous pressure on rents.
Over the previous 4
rounds of this reported retail
sector yields have moved out
by 50bp.
However, in the last six
months all retail submar-
kets saw decreasing yield
opinions by 25 to 37.5 basis
points. Sentiment towards
rental levels is however
deteriorating in two of the
three retail categories con-
tinuously. Rent opinions have
decreased by 10%-20% in
respect of Mall-Type Retail
Parks and Big Box units,
while responses regard-
ing the Top-5 Malls oscillate
around a fairly stable level.
Retailsector
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
5-6
6-7
7-8
8-9
9-10
10-1
1
11-1
2
12-1
3
13-1
4
14-1
5
15-1
6
16-1
7
17-1
8
18-1
9
19-2
0
typical rent frequency (2013 H2) (MA) typical rent frequency (2013 H1) (MA)
1 2 3 4
How has the difference between headline and effective rents have changed in the last 12 months in the office sector?
Decreased:
16%
Unchanged:
46%
Increased
34%
No answer:
4%
Retail sector showed stabilization of yields, with continuous pressure on rental rates.
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey
8
Distribution of responses in 'Prime Non-CBD office rent' category
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
5-6
6-7
7-8
8-9
9-10
10-1
1
11-1
2
12-1
3
13-1
4
14-1
5
15-1
6
16-1
7
17-1
8
18-1
9
19-2
0
typical rent frequency (2013 H2) (MA) typical rent frequency (2013 H1) (MA)
1 2 3 4
How has the difference between headline and effective rents have changed in the last 12 months in the office sector?
Decreased:
16%
Unchanged:
46%
Increased
34%
No answer:
4%
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
10 11
4.OneoftheTop5shoppingmalls
0%
4%
8%
12%
16%
20%
0–5
10–1
5
20–2
5
30–3
5
40–4
5
50–5
5
60–6
5
70–7
5
80–8
5
90–9
5
100–
105
median = 37
0%
5%
10%
15%
20%
25%
30%
5–5.
25
5.5–
5.75
6–
6.25
6.
5–6.
75
7–7.
25
7.5–
7.75
8–
8.25
8.
5–8.
75
9–9.
25
9.5–
9.75
10
–10.
25
10.5
–10.
75
11–1
1.25
median = 7.25
Prime shopping center located in Budapest,
at a metro station or central location:
– GLA is at least 40,000 sqm, no vacancy
– the property accommodates at least
2 major anchor tenants
– the average unexpired lease term is
at least 5 years
Market headline rental rate for a specific
letting transaction:
– 200 sqm retail unit
– 5-7 year lease term
– strong international brand
– well-positioned unit within the centre
0%
5%
10%
15%
20%
25%
30%
0–2
4–6
8–10
12–1
4
16–1
8
20–2
2
24–2
6
28–3
0
median=10
0%
5%
10%
15%
20%
25%
30%
5–5.
25
5.5–
5.75
6–6.
25
6.5–
6.75
7–7.
25
7.5–
7.75
8–8.
25
8.5–
8.75
9–9.
25
9.5–
9.75
10–1
0.25
10.5
–10.
75
11–1
1.25
median = 8.25
Retail park located in Budapest, in an
established location:
– GLA is approx. 12,000 sqm, no
vacancy
– the property accommodates at
least 1 major anchor tenant
– the average unexpired lease term is
at least 5 years
Market headline rental rate for a specific
letting transaction:
– 300-400 sqm
– 5-year lease term
– local company / strong international
brand
5.Mall-typeretailparks
0% 2% 4% 6% 8%
10% 12% 14% 16%
5-5.
25
5.5-
5.75
6-
6.25
6.
5-6.
75
7-7.
25
7.5-
7.75
8-
8.25
8.
5-8.
75
9-9.
25
9.5-
9.75
10
-10.
25
10.5
-10.
75
11-1
1.25
median = 8.125
0%
5%
10%
15%
20%
25%
30%
0–1
2–3
4–5
6–7
8–9
10
–11
12
–13
14
–15
median = 7
Stand alone hypermarket located within
an established retail park:
– GLA is at least 5,000 sqm and
single let to a reliable and
financially stable tenant
– the remaining lease duration is at
least 10 years
Market headline rental rate for a specific
letting transaction:
– 5,000 sqm big-box, 10-year lease term
– reliable and financially stable tenant
6.Bigboxretail
Yieldopinions(%)
Rentopinions(€/sqm/m)
Rentopinions(€/sqm/m)
Yieldopinions(%)
Rentopinions(€/sqm/m)
Yieldopinions(%)
Marketisstillslowwithlimitedinterestforassetsbycoreinves-tors,ifany.Purelylocalbuyersandprivateequityinvestorsarearound,thehigh-profileinvestorssuchasinsitutionalpropertyfunds,listedpropertyinvestorsandinsurancecompaniesarefullyrefrainingfrominvestinginHungarianrealestate.Thisismostlyduetounderlyingpropertyfundamentals(vacancy,pressureonrents,noliquidity,rentalvolatility)andeconomicindicators(creditrating,lackofsensiblerealGDPgrowth,levelofpublicdebt,increasingtaxlevelsacrosstheeconomy,etc.).Littlefinancingisavailable,andevenifitisavailable,itisveryexpensive.Thegovern-ment'sperceptionisalsoextremelyunfavourable.
(Undisclosed)
Themarketisshowingsignsofim-provementandinternationalinves-torsareagainconsideringinvestinginHungary.Thebanksarealsotalkingtotheirpotentialcustomerswhichisagoodfirststeptoaliquidmarket.However,marketrecoveryandgainingbackconfidencewilltakemorethan12months.Hungarywillseearecognizedpositionforgrowth,togetherwithstronginvestorandoccupierinterestin2015-2016.
(Undisclosed)
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
12 13
Distributionofresponsesin'rentalratesformalltyperetailparks'category
Distributionofresponsesin'rentalratesforthetop5malls'category
0%
2%
4%
6%
8%
10%
12%
14% 0-
5
5-10
10-1
5
15-2
0
20-2
5
25-3
0
30-3
5
35-4
0
40-4
5
45-5
0
50-5
5
55-6
0
60-6
5
65-7
0
70-7
5
Typical rent frequency (2013 H2) (MA) Typical rent frequency (2013 H1) (MA)
0%
5%
10%
15%
20%
25%
0-2
2-4
4-6
6-8
8-10
10-1
2
12-1
4
14-1
6
16-1
8
18-2
0
20-2
2
22-2
4
24-2
6
26-2
8
28-3
0
30-3
2
typical rent frequency (2013 H2) (MA) typical rent frequency (2013 H1) (MA)
The low level of activity
on the industrial & logis-
tics market is reflected in its
fairly constant rental rates
and yield assessments.
Respondents estimated
these assets sell at a 9%
yield in all but one of the
surveys since the start.
Rental rates have shown
a moderate drop in terms
of out of town logistics
schemes, while the gap
between minimum and max-
imum rental rates has wid-
ened for both categories.
Small Business Units are one
of the most stable categories
overall. Compared to other
types of real estate, appe-
tite for industrial property
is considered low by both
investors and developers.
Industrialsector
Appetite for industrial property is consid-ered low by both investors and developers.
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
14 15
7.SmallBusinessUnits
median = 3.25
0%
10%
20%
30%
40%
50%
0–0.
5
1–1.
5
2–2.
5
3–3.
5
4–4.
5
5–5.
5
6–6.
5
7–7.
5
Rentopinions(€/sqm/m)
0%
10%
20%
30%
40%
50%
5.25
-5.5
5.
75-6
6.
25-6
.5
6.75
-7
7.25
-7.5
7.
75-8
8.
25-8
.5
8.75
-9
9.25
-9.5
9.
75-1
0 10
.25-
10.5
10
.75-
11
median = 9
Yieldopinions(%)
A-category industrial property located within
Budapest, close to main arterial road:
– GLA is at least 10,000 sqm (could be in
multiple buildings)
– the property is approx. 100% let to
multiple tenants
– the average unexpired lease term is at
least 3 years
Market headline rental rates for a specific
letting transaction:
– 500 sqm warehouse space
– 3-year lease term
– reliable and financially stable tenant
A-category industrial property located
approx 5 minutes from a motorway:
– GLA is at least 25,000 sqm (could be in
multiple buildings)
– The property is approx. 100% let to
multiple tenants
– the average unexpired lease term is at
least 4 years
Market headline rental rates for a specific
letting transaction:
– 3,000 sqm warehouse space
– 5-year lease term
– strong international tenant
8.Primeout-of-townlogisticscenters
median = 4.125
0%
6%
12%
18%
24%
30%
0–0.
5
1–1.
5
2–2.
5
3–3.
5
4–4.
5
5–5.
5
6–6.
5
7–7.
5
Rentopinions(€/sqm/m)
0%
5%
10%
15%
20%
25%
30%
35%
5-5.
25
5.5-
5.75
6-
6.25
6.
5-6.
75
7-7.
25
7.5-
7.75
8-
8.25
8.
5-8.
75
9-9.
25
9.5-
9.75
10
-10.
25
10.5
-10.
75
11-1
1.25
median = 9
Yieldopinions(%)
Distributionofresponsesincategory'rentofout-of-townlogisticsbuildings'
0%
5%
10%
15%
20%
25%
0-0.
5
0.5-
1
1-1.
5
1.5-
2
2-2.
5
2.5-
3
3-3.
5
3.5-
4
4-4.
5
4.5-
5
5-5.
5
5.5-
6
6-6.
5
6.5-
7
typical rent frequency (2013 H2) (MA) typical rent frequency (2013 H1) (MA)
How has the difference between headline and effective rents have changed in the last 12 months in the industrial / logistics sector?
Decreased:
8%
Unchanged:
38% Increased:
24%
No answer:
30%
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
16 17
Which commercial segment do you think currently offers the best conditions for an Investor?
How do you think investment appetite for property will change over the next six months?
Which commercial segment do you think currently offers the best conditions for a Developer?
Office 34%
Retail 34%
Industrial 17%
Other 12%
I don't know 3%
Office 38%
Retail 16%
Industrial 20%
Other 22%
I don't know 4%
Improve 40%
Same 58%
I don't know 2%
Generalsentiment
Compared to earlier surveys, the most significant change isthe cautious optimism now expressed in regards to mar-ket trends, particularly towards investment activity. This lat-est survey was the first one in which not a single respondent answered “worse” to the ques-tion about future investment appetite.
Change in rent opinions (euro/sqm/month)
Change in rent opinions (euro/sqm/month)
0 5 10 15 20
Top CBD office building
Prime non-CBD office building
Good quality non-central office building
Prime out-of-town logistics center
Small business unit
2013 H1
2013 H2
2013 H1
2013 H2
0 5 10 15 20 25 30 35 40 45
Top 5 mall
Mall-type retail park
Big Box Retail
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
18 19
Change in yield opinions (euro/sqm/month)
Change in yield opinions (euro/sqm/month)
2013 H1
2013 H2
0 1 2 3 4 5 6 7 8 9 10
Top CBD office building
Prime non-CBD office building
Good quality non-central office building
Prime out-of-town logistics center
Small business unit
2013 H1
2013 H2
0 1 2 3 4 5 6 7 8 9 10
Top 5 mall
Mall-type retail park
Big Box Retail
A biannual publication, the Market Sentiment Survey is a collaboration between the Eltinga
Centre of Real Estate Research, Portfolio.hu and RICS Hungary. It has been designed to pro-
vide a clear picture of how Hungary’s senior real estate professionals see current yield and
rental rates, as well as general market expectations. The purpose of the Market Sentiment
Survey is to improve transparency on the Hungarian real estate market by establishing a
benchmark for sentiment drawing on a wide professional basis. All Hungarian RICS mem-
bers (both full members and candidates for membership) were invited to fill in a question-
naire prepared by RICS and Portfolio.hu. They were asked for their opinions on current mar-
ket yields and rental rates, as well as on future market expectations. A total of 51 real estate
professionals, nearly a third of RICS Hungary’s membership, participated actively in the cur-
rent Market Sentiment Survey. Of the respondents, 70% were full RICS members and more
than 70% have over 10 years of professional experience. The completed surveys indicate
that around 55% of respondents work for international companies.
Respondents were asked to provide information on their industry and their personal spe-
cialty within their organization. Around 45% of respondents work for consultancy firms.
However, developers and asset management professionals also weighed in heavily within
the survey. The respondents’ fields of specialization were fairly diverse: valuation, invest-
ment, development and asset management were the best represented categories in the sur-
vey.
Aboutthesurvey
Ratioofrespondentsownworkspecialism
0
5
10
15
20
25
30
35
OtherValuationInvestmentFinancingDevelopmentAsset management
2013 H2 2013 H1 2012 H2
H2 2013 | Portfolio.hu–RICS–ELTINGA Market Sentiment Survey
20
Definitions
Market Yield: The current net annual income divided by the purchase price received by the
Vendor in a transaction where the asset has been traded at Market Value as of today. Mar-
ket Value is the estimated amount for which a property should exchange on a certain date;
between a willing buyer and a willing seller; in an arm’s length transaction; after proper mar-
keting; when both parties had each acted knowledgeably, prudently and without compulsion.
Market Headline Rent: The estimated amount for which a property, or part of a property
should lease on appropriate lease terms between a willing landlord and a willing tenant; on
a certain date; in an arm’s length transaction; after proper marketing; when both parties had
each acted knowledgeably, prudently and without compulsion.
Category ‘A’: A building that either conforms to all the „hard criteria“ and at least 6 of the
„soft criteria“ or certified by Breeam / LEED. Hard criteria: modern cable management, a mod-
ern air handling system, adequate provision of secure dedicated parking (at least parking ratio
of 1/75 not applying to refurbishments and periphery sub-market), a high quality standard
finish, 24-hour access and security. Soft criteria: high speed modern lifts, clear ceiling
height of at least 2.70 m, prestige/quality reception area, flexible partitioning, high quality
architectural design, services in the building / immediate vicinity, power-supply back-up, dou-
ble-glazed windows / anti-glare glass, restaurant/canteen, quality finish to working areas.
Budapest Research Forum (BRF): It was established in 2000 and currently include the fol-
lowing members: CB Richard Ellis, Colliers, Cushman & Wakefield, DTZ, Eston, GVA Robertson,
Jones Lang LaSalle. The aim of BRF is to represent a regulated framework where the leading
property advisors can discuss the problems related to the Budapest property market, share
and analyse market information.
RICS – the Royal Institution of Chartered Surveyors – was created in 1868 in the United Kingdom. It received a royal charter in 1881.
RICS members are known as chartered surveyors, and are recognised by the designation after their name – FRICS (for Fellow of RICS) or MRICS (for Member of RICS).
Today RICS is a global property professional body with 100,000 qualified members in over 100 countries. The key roles of RICS are to regulate and promote the profession, maintain the highest edu-cational and professional standards, protect clients and consumers through a strict code of ethics and provide impartial advice, analysis and guidance
Chartered surveyors help to sustain the use of land and unlock the long term value of property. They are key to efficient markets in land, property and the environment without which important world economies would not be able to function effectively.
Anna Orcsik, Regional Manager – RICS Central & Eastern EuropeE: aorcsik@rics.org W: www.rics.org/europe
référence pantone = 269
Portfolio.hu–RICS–ELTINGA Market Sentiment Survey | H2 2013
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