1500 new apartments – one of the biggest residential projects in the past 25 years to start in Budapest
Cordia Real Estate Development announces the development of 1500 newly built smart homes in 8 locations
Since the fall of communism, there has been hardly any development project of the scale announced today by the leaders of the real estate developer firm Cordia Hungary. The developers of Corvin Promenade are starting the development of about 1500 newly built apartments, most of which will be smart homes, in 8 different locations of Budapest. At the press conference, the firm also presented its real estate market report for Q1 2016. It shows that demand for newly built apartments has tripled in the inner city districts compared to the average of Budapest, therefore Cordia is focusing its new residential projects on these districts.
According to Cordia’s proprietary market survey, demand for new homes increased by 70% in the last six months compared to one year before and it was the triple of the demand two years ago. Cordia has responded partly to this phenomenon with its new real estate development projects. The significance of these 1500 new apartments is clearly demonstrated by the fact that during none of the past 4 years were more than 2000 new homes built in the capital city. In 2015, about 3500 newly built homes were sold in Budapest but this represented the whole supply as the supply of new apartments hit rock bottom by the end of the year.
Differences by district – up to 10-fold difference in supply
At the press conference, CEO of Hungary’s leading real estate developer Cordia Hungary Mr. Tibor Földi has also said that there are significant differences in the supply of residential property in different districts. Whereas supply is ample in the 3rd, 11th, 13th and 14th districts, there are parts of the city where there are only a few dozens of newly built homes for sale. The gap between supply and demand is the biggest in the inner city districts (5th, 6th, 7th, 8th, 9th districts) where demand exceeds supply three times i.e. only one out of three potential buyers can buy an apartment.
The market leader offers 1500 new apartments – The buzzword is „Smart Home”
In view of the above trends, Cordia has started a complex residential development project which consists of 8 sub-projects in 8 different locations of the city, building a total of 1500 new apartments in the forthcoming period. As a result, everybody will be able to find an apartment that fits their individual lifestyle and in their preferred location if they choose from the soon-to-be-available homes.
What is also special about this project is that Cordia’s newly built apartments will be so-called „smart homes”. With smart homes you can use your smartphone to access your home’s smart devices remotely e.g. from the city. It means that only with a push of a button you can check your heating or air-conditioning or whether you forgot to close the door.
Cordia will offer three different packages to their buyers representing three different service levels. The basic package will include lighting control and opening and closing the door whereas the premium package offers connectivity for virtually all web-enabled devices in the apartment: you can remotely control lighting, heating, electric sockets as well as the entrance security system.
The most recent development projects announced by Cordia will focus on districts where a significant gap has emerged between demand and supply in the past period.
8 locations in Budapest – 1500 new apartments
In the 8th district, Phase I of Corvin Atrium is part of the Corvin Project, one of the most prestigious projects in the city. Here, more than 260 apartments will be sold in a district where rental fees have doubled during the past 10 years. All this can be interesting especially for those who want to buy real estate for investment. In the 14th District, the Thermal Zugló II Project is very special because all the 190 apartments to be built there will be supplied with thermal water, not to mention the open-air bath across the street which is currently undergoing renovation and where an indoor swimming pool will also be built.
At the foot of the prestigious Rózsadomb, in Kapás Street, 2nd District, the 102-apartment Kapás21 project is also interesting because there has been no project offering newly built apartments in this area for years so Cordia expects tremendous interest. Cordia is launching two projects in the 13th district under which 410 new apartments will be offered to buyers. In the inner city districts, the Rózsa 55 project near Andrássy Street, and the Grandio project in a section of the 7th district called the “Budapest Soho” offer high-quality apartments to potential buyers.
Outlook on the real estate market of the capital
At the press conference, Cordia’s experts have said that since the number of empty plots is decreasing in the inner city, a significant shortage of new apartments may arise in these district and this may be one of the reasons, in addition to dwindling demand, why supply has shrunk lately. This is exactly why Cordia’s experts think it very likely that the price of the best situated inner city apartments might approximate the Western European price tags in just a few years.
The other reason why investors may remain interested in promising properties in the forthcoming years is that alternative investments offer very low yields currently primarily owing to the very low prime rate of the central bank. It is in response to these trends that Cordia is starting one of the biggest residential projects in the past 25 years in the spring of 2016. The 1500 apartments that will become available under this project will potentially satisfy most of the demand for real estate both for investment and for residential purposes.