Further opportunities arise for real estate investors
July 14th, 2016
CIB Group is currently selling a 29-piece bundle mostly consisting of residential properties. The bank group has decided on the bundle sale based on the increased demand on the market, and is planning on making similar offers in the future as well.
CIB Group has commissioned Otthon Centrum Solutions Ltd. with the selling of a 29-piece bundle mostly consisting of residential properties, with an approximate average price per m2 of 94 000 HUF. The portfolio exclusively contains estates that are free of any liens and encumbrances with clear titles, pertaining to the ownership of the bank group. Out of the properties included in the bundle, 11 of them is located in Budapest, while the other 18 can be found in five Northern Hungarian counties. Besides the 11 estates that are in Budapest, 10 are situated in cities with county rights, 6 in smaller towns, while only 2 of the total 29 can be found in small settlements. The currently empty properties are marketable and fit to be sold in their actual technical status.
“If the investor’s goal is to sell the properties separately, one by one aiming for a future return, besides the price discount available with the bundle purchase, a possible growth in value also contributes to an increase in profit” – emphasised Tibor Nagy, Otthon Centrum’s business development manager. He added that according to the company’s experts, the rise in real estate pricings in Budapest is going to get slower in the following period, but there’s still a 10% expected in a one-year timespan. In the Northern region, however, properties are still 20-25% less expensive than they were before 2008, thus a rise of the same magnitude can be expected to happen in the next 12 months.
“Based on growing demands, low-return environment and the increased activity on the mortgage market, we’re expecting to successfully sell the portfolio in a short while” – commented Rudolf Nemes, CIB’s leading expert. He added that CIB Group selected the estates based on their usability, location and value. The group is planning on making similar offers in the future as well.
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