Xpat Opinion: Retail Opportunities in Budapest, When Is The Right Time To Buy?
- 16 May 2013 9:00 AM
High-street retail rental prices are around 1020 EUR/m2/year in Budapest. The market has shrunk over the past years. According to the latest quarterly report of CBRE this is the reason there are exceptional opportunities in Hungary, attracting the attention of investors throughout Europe. The most expensive cities in Europe are of course London with 8843 EUR, and Paris with 8820 EUR. New York stands at 24,944 EUR/m2/year, with a number of new stores opened in 2012. Hong Kong leads the list with prices 150% higher than New York City.
The reason for the skyrocketing rental rates is the lack of new developments worldwide. The annual rent of the stores Chanel, Louis Vuitton, Hugo Boss, Sisley, Yves Saint-Laurent, and similar brands in Budapest only pays for 10 days of the rent in Hong Kong. Since rental yields determine the purchase price of high street commercial property, now is the time to buy.
By Andras Patkai, Entrepreneur, Founder and CEO of CE Invest Group, and expert blogger on real estate and property issues in Budapest and Bratislava.
This opinion does not necessarily represent the views of this portal, your opinion is welcome too via info@xpatloop.com
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