The city's rapid growth and the dynamism of the industrial property market are creating opportunities without precedent. In our view, logistics and industrial projects will continue to play a defining role in the region's property market. At the same time we are watching movements in the housing market, where the Debrecen Főnix Housing Programme may bring new momentum. Our portfolio therefore spans industrial, logistics, residential and mixed-use commercial developments alike.
We are weighing several financing options for these plans. We are examining project-level co-investors, and the possibility of establishing capital funds and REITs (regulated real-estate investment companies). Despite the slowdown in the property market, we are convinced that acting at the right moment can secure sustainable growth and success in the market.
With REITs, investment transactions are less frequent than with shares. Daily trading is not typical, but in my judgement — he said — this too is a predictable and secure form of investment. So we are examining all of these, and we will naturally take the decision on the form of capital raising in light of market conditions, explained Sándor Szabó, Deputy CEO of our Group.
In the view of Gyula Szűcs, Chairman and CEO, the Group's capability is shown by the fact that over the past ten years, as appetite for property investment strengthened significantly in Debrecen too, it delivered substantial developments both independently and with co-investors — and was a pioneer in several areas.
Significant results and ambitious plans
We developed Eastern Hungary's first grade A office building in the University of Debrecen's Industrial Park, for example, along with several industrial halls held for long-term letting.
Our appetite for innovation also shows in the fact that two decades ago we delivered Hungary's first PPP programme, and have since built several university halls of residence and student accommodation under similar arrangements. Working with the municipally owned Debreceni Vagyonkezelő Zrt., we contributed to the city's development with the Forest Offices building.
Future developments in focus
Several large-scale projects are currently in preparation. At Balatonakarattya, for instance, we are planning a premium residential park worth close to HUF 20 billion, comprising 99 apartments. Starting depends on our seeing sufficient demand in the market.
In Debrecen we are developing a real-estate package worth HUF 30–40 billion in total, comprising industrial and logistics developments alongside residential and mixed-use commercial property. That already takes us halfway to our 2030 objectives.
We are committed to the long-term development of Debrecen and its region, and we believe the right strategic steps can strengthen our position in the property market further.
We set out these plans and objectives in detail in an interview with the news portal Világgazdaság, where our Deputy CEO Sándor Szabó and co-owner Gyula Szűcs shared their thoughts on the opportunities and challenges ahead.
The article is available here (in Hungarian): https://www.vg.hu/cegvilag/2024/11/szazmilliardos-ingatlanfejlesztest-terveznek-az-orszag-masodik-fovarosaban