S IMMO AG: Rental income up 40% in Budapest
After extremely difficult years on the Budapest office property market – including a vacancy rate of 44% as recently as 2014 – S IMMO AG can report very positive results at the end of 2017. Over the past three years, we have reduced the vacancy rate to 8% and boosted rental income by roughly 40%. Rental agreements for 14,000 m² of space were extended this year, and new tenants – including the internationally active facility management firm P. Dussmann Kft. and the pharmaceutical software development company Novodata – were secured for more than 8,000 m² of space.
The Marriott Hotel in Budapest has also experienced an encouraging development. The positive economic conditions on the Budapest market and rising demand have contributed to higher occupancy and an increase in room rates. As a result, revenues from hotel operations have risen by more than 25% since 2014.
Friedrich Wachernig, member of S IMMO AG’s Management Board, is pleased by these developments and optimistic about next year: “I am very happy about the positive trend being experienced by the market and our properties. We have made tremendous efforts and timely investments in recent years in order to keep our properties competitive with exciting concepts. And now we can reap the fruits of these labours. The location is booming, so I am highly confident that 2018 will be another successful year on the Budapest market.”