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Expo Real is the largest European commercial property trade fair. Today the heart of the trade fair is beating in the same rhythm as the heart of the industry, i.e. considerably less excitedly than in previous years.

Instead of seven halls as in 2008, this year trade visitors only had to negotiate six. Exhibitors came from 37 countries, and Hungary was present at two stands ,with a total of ten companies from the Budapest Business Region represented.

Karl Walter Schuster, Central European director of building technology enterprise YIT clearly set out his view of Central and Eastern Europe: “Poland and the Czech Republic are stable, in Hungary things have come to an absolute standstill and in Romania we learnt the hard way.”



Fighting perceptions

RE Project Development Kft, subsidiary of Raiffeisen Evolution Austria, took a slightly more nuanced view. “Hungary is better than its reputation,” said CEO Rudolf Riedl, who has represented the company since the nineties. “Non-payment of rental fees is limited. Tenants who are behind on payments want to fulfil their obligations and pay off the outstanding rent if they have the liquidity.”

RE is still building, but it is only completing projects already underway, rather than starting new ones. For some time the company has benefited from projects for Hungarian tenants, with rental fees EUR 3 to 4 lower per sqm than for international tenants and a solid, albeit trimmed-down furnishing concept.
IVG, the leading European provider of tailored property funds for institutional investors took a similar view of the Hungarian situation.

Kay-Uwe Blandow, country manager Hungary said that projects are being completed, such as Stefánia Park. IVG Hungary is concentrating on letting existing properties, and is not embarking on new projects for now.

The green scene

Going green was an important topic at the trade fair. Making sustainability measurable is strongly in the interests of the funds. Discounter chain Lidl presented its new store concept designed to save approximately 55 tonnes of C02 per year, per store. In Hungary the discounter is planning to double the number of its outlets. However, Hungarian customers will have to wait for the first sustainable stores, since the country is not on its priority list.

Lidl’s showcase project was awarded silver pre-certification by the German Society for Sustainable Building (DGNB). The certification organisation is expanding into Eastern Europe. In Bulgaria there is already a sister organisation and a “memorandum of understanding” was signed with Hungary. The signatories were Professor Werner Sobek, president of DGNB and László Szekér and Sándor Fegyverneky, presidents of the Hungarian Green Building Council (HuGBC).

It’s the whole package

The message for Hungary’s real estate industry was the following: Today everyone is competing with everyone else. Regions are more successful if they can point to innovations, a higher level of education, better transport connections, and a mix of values, from culture to history, business environment and quality of life.

 Those who want to do business have to prove themselves as professionals and score points with sound craftsmanship. Nothing else works any more.

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