The sub-index measuring the outlook for industrial properties, warehousing and distribution showed slight improvement, while all other indices either stagnated or declined.

The office market is in the pits, said GKI managing director Laszlo Akar. Vacancies are very high at 24% for class A buildings, as new developments coming onto the market have added to supply while demand remains weak.

The sub-index of retail property remains the lowest at -50. GKI expects average prices for both new and old homes to decline by 2.2% and 3.3%, respectively, next year.

GKI projects construction of 20,000 new homes next year."

Source: Hungary Around the Clock.

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