Hungarian Watch Winter 2015
Hungarian Watch editions
Budapest a potential candidate for Summer Olympic Games
Major construction projects ahead in 2015
The Agenda 2020 creates a historic opportunity for Budapest to host Summer Games. It remains to be seen whether Budapest will grab this opportunity, but the government’s commitment to the Hungarian sports industry will remain firm. Several big-ticket projects are already scheduled for 2015 to support the possible hosting of Summer Games and other major sporting events. The future is challenging, so investors should keep an eye on forthcoming tender developments.
The new Silk Road leads to Hungary
The mega railway deal signed
The several thousand years old Silk Road that connected Asia and Europe is now entering a new era. After long term negotiations the agreement on the reconstruction of Budapest- Belgrade railway line has been finally signed. The new railway track will enable Chinese goods to reach western parts of Europe faster than ever through Hungary. The investment volume is estimated to reach USD 2.89 billion. The call for tenders for one of the largest railway deals in Central Europe and the Balkans may be published this year. Stay tuned.
Be profitable or leave the market
Foreign retail chains could be driven out of Hungary
The Hungarian parliament passed a bill which can seriously hit foreign chains. The bill practically states that fast moving good retail chains with an annual turnover of more than HUF 15 billion shall close if they fail to report a profit over two successive years. Spar, Auchan, Aldi and Metro could immediately be driven out of Hungary if the law is applied retroactively. It seems that the government is sending a sharp ultimatum: either be profitable or check out from the Hungarian market. The ball is in the court of the foreign chains.
Arab investors give a boost to the Hungarian five-star business
Luxurious hotel deals out in front
Arab investors are ready to give a boost to the Hungarian five-star hotel business in exchange for highly lucrative opportunities in the long term. In 2014 alone, three major hotels were sold to Arab investors. If this course continues we may expect further rise of luxorius hotel deals.
Hungarian Residency Bond Program is very popular
Hungary raised the price of the residency government bonds
The Hungarian Residency Bond Program offers non-EU nationals permanent residency if they invest into government bonds. The Program has become very popular. The Government sold more than 2,200 residency government bonds by the end of 2014. The Hungarian state therefore considered it reasonable to raise the price of the residence government bond from EUR 250,000 to EUR 300,000 from 1 January 2015. VJT & Partners, which was bestowed with the Best Immigration Law Firm award, will continue to provide legal advice and assistance in Residency Bond Program.
Revival of Hungarian real estate investments
More investors considering the Hungarian real estate market
The Hungarian real estate market is finally showing signs of recovery after the financial crisis. Increasing office demand, falling vacancy and rising investment activity is expected for 2015. Although we are still not acheived the investment volume of the pre-financial crisis period, there are several high profile projects to be implemented in 2015. This is the right time for investors to seize new opportunities.