IMMOEAST Annual Report 2006/07

Recreation/hotel properties 1.5%
Residential properties 1.6%
Logistics properties 14.4%
Parking 18.9%
6.1.4. Hungary
Country information
Population in mill.
2006
10.1
Real GDP increase in % 3.9
GDP per capita in EUR 8,850.0
I n f l a t i o n i n % 6 . 6
40.3% Office properties
23.3% Retail properties
Source: Eurostat
Segment Reports
The property market in Hungary
The office market in Hungary has roughly 1.8 million sqm of space and a vacancy rate of 14%, which
is concentrated in older buildings that have not been renovated. The demand for new high-quality
space has remained consistently high since the country’s accession to the EU in 2004. New rentals
have risen from 140,000 sqm in 2003 to a current level of 230,000 sqm per year. The supply of new
space has lagged behind this development to date, but the production of new space and demand
are expected to equalise in 2007.
The Hungarian residential market is concentrated in Budapest, where roughly 850,000 units are
registered as primary residences. A process to privatise state-owned apartments was started during
the early 1990s after the political transformation, and the share of owner-occupied apartments
has reached nearly 90%. As a result, the momentum on the rental market is correspondingly low.
The rising level of incomes has led to the development of new retail space, not only in Budapest but
also in the prospering provincial cities. The logistics market has shown steady development with
roughly 1 million sqm, which are concentrated on the autobahn ring surrounding Budapest and have
a vacancy rate of almost 9%.
The development of business in Hungary
Revenues recorded by the Hungary subsegment rose by roughly 55% to TEUR 32,568.4 as a result
of new acquisitions and the purchase of the remaining shares in IMAK CEE. Revaluation results
were influenced by the increasing strength of the Forint in comparison with the Euro, which held the
improvement in EBIT below the growth in revenues at 8.3%.
Report by the Executive Board 89
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
Distribution of letable space by
sector in the Czech Republic
As of 30.4.2007
Office and residential
market focus on Budapest,
retail also in in provincial cities
Revenues increase 55%,
EBIT influenced by
foreign exchange factors