Property groups look to Hungary

Hungary and other Central and Eastern European countries have seen a rush of interest from various property groups which bodes well for smaller investors.

In the last week an astonishing number of businesses have announced various new ventures which indicates interest in this part of Europe is not dwindling.

ING Real Estate has appointed three senior managers to its investment management business in central and Eastern Europe. They will add to the teams already in place in the Czech Republic, Hungary, Poland, Slovakia and Romania.

Nanette Real Estate has bought a 38 acre site in Hungary for a mixed use development.

The AIM-listed company has bought the land, which is three miles from Budapest city centre, in a joint venture with the local authority. It already has eight other projects in the country.

This latest project is designated for public buildings and facilities but the joint venture is working to change the land use to residential, commercial and hotel, releasing some excellent opportunities for property investors.

The company said the move highlights its belief that Hungarian economy will continue to grow, which will sustain the demand for new housing aimed at the urban middle class.

And just last month in a joint venture with Lehman Brothers, the company bought a 236,000 sq ft residential development site in Gdansk, Poland.

Spain's largest real estate agency and financial service company is also moving east. Fincas Corral Servicing, has begun work on a network of offices in Hungary.

In a statement it declared it want to quickly build up a network in Hungary, which has seen an increasing number of franchise-based offerings in the property and finance sector.

Fincas' services include mortgages, commercial lending, insurance, real estate trade, investment and management and it wants to open a minimum of 30 franchise offices during the course of this year.

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