Great discussion at the CIJ Investment Roundtable in Hungary today at Bank Center. It certainly wasn’t all doom and gloom, but the panelists agreed that Hungary’s knack for attracting scary headlines isn’t helping matters.
On the positive side, strong projects continue to perform, providing a certain level of comfort to developers and investors who know they’re investing into projects with solid fundamentals. And if a certain trio of major transactions were to go through, which would silence the pessemists, at least for a time.
And investors continue to land at Budapest’s new airport in order to scout out the opportunities. Unfortunately, they’ve been running into increased resistance from banks to agree to financing of new transactions, to the point that some investors won’t begin due diligence until some level of credit agreements have been put in place. And clearly, the country is still in a tight spot, with the consumer spend continuing to be squeezed by unemployment and the Swiss franc mortgage mess.
There was an overall consensus that it would be helpful if there were a more active approach towards outside investors, be it from the state, the city or from the private sector.
We’ll be featuring excerpts from what was an open and frank debate about the state of the property market in the November issue of CIJ.