Budapest, 22 November 2016 – Cordia, Futureal Group’s market leading residential development subsidiary has announced the largest roll-out of residential development projects in Hungary by any developer in the last 20 years. The simultaneous launch of 8 new residential development projects in Budapest will bring a total of 1660 new homes to the market, where annual supply collapsed to only 2000 units in 2014 and where sales are projected to exceed 7000 in this year.
“The Futureal Group has created Cordia with the aim of becoming the largest regional residential developer active in CEE and SEE markets.” said Gabor Futó, founder of Futureal Group. “We see growing regional economies, historically low interest rates and the return of mortgage financing as the catalyst for a new period of healthy market performance. Significant pent-up demand as well as bad quality housing stock in some of the countries create a strong background for our expansion plans.”
According to Cordia, residential real estate investment offers great opportunities for retail investors compared to stocks and bonds. Average rents have doubled over the last ten years in Budapest and an average net monthly income for a newly built, one-bedroom flat stands at €650. “Investors could reach an annual gross rental return of 6-7 per cent with Cordia’s well located homes” said Mr Földi Mr Tibor Földi, CEO of Cordia’s Hungarian subsidiary. “What’s more, our property management unit offers full range of services to investors in order to design, furnish, find tenants, rent out the apartment and supervise payments. All in all we offer a convenient, financial-like investment opportunity to our customers in a real asset.”
Cordia is also developing several residential projects in Krakow and Warsaw. Newly built apartment prices are generally 30% higher in Warsaw than in Budapest, and 10% higher in Krakow than in the Hungarian capital.
About Futureal Group
Futureal Group is one of the leading real estate developers and investors in Central and Eastern Europe and is among the top 20 largest real estate developers in Europe. To date, the Futureal Group has developed over 350,000 square meters of real estate projects with a total value of EUR 900 million. One of the Futureal Group’s most outstanding projects is Corvin Promenade, the largest inner-city urban regeneration project in the CEE region. In 2010, the project received the European Commercial Property Award for the Best Mixed Use Development of Europe and in 2014, the company received the Urban Land Institute’s (ULI) Global Award for Excellence, considered to be the Oscars of city and real estate development.
