Forint Drops but Real Estate Activity Continues
January 6th, 2012
These are legitimate concerns. The reason for these issues however are a matter for debate. Most commentators believe it’s directly due to Government policy while the government blames speculators and sins of the past government. However explaining these issues in detail is beyond the remit of a mere property management company. However one thing is certain; while these issues are being debated real estate activity appears to be continuing as normal. Tower continues to rent and sell property without any noticeable drop in activity and we are also seeing a busy start to 2012 in both these areas, which is good news for clients. Tower has also moved into new, larger premises in the West End Business Center, and we have many plans for 2012. So we are looking forward to a busy year. However we remain vigilant and will continue to monitor all developments from our client’s point of view.
The last time Hungary faced a similar situation was in late 2008. In fact it was perhaps more serious. At that time the HUF also dropped significantly but eventually settled at between 260 and 270 for most of the next three years, with economic activity continuing as normal, and indeed with sectors such as manufacturing and exports developing strongly.
This week the Government will meet again with the IMF and we hope that things will move forward in a more positive manner.
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