Could Hungary's investment market be on the cusp of recovery?

There are plenty of reasons to be optimistic about the outlook for the Hungarian commercial property investment market. This afternoon’s further cut in interest rates, to a fresh record low of 3%, only serves to make property valuations look more attractive, while the economy is growing nicely and the lending environment is loosening up. But while we think this will support a strong rise in investment demand in 2014, this will be from a very low base and with little near-term effect on yields.