Retail and real estate market overview
The Indotek Group became a co-owner of Auchan and Ceetrus Hungary. Tesco has sold several of its shopping malls to the Adventum Group. The construction industry is booming, a record number of apartments are being built in Budapest. In our excerpts we have selected from the latest retail and real estate market news.
The average purchasing power per capita in Hungary is 7,643 Euros, which corresponds to 51 percent of the European average. This year, we are also ranked 30th in the national comparison. In Hungary, the regions with the highest purchasing power were once again able to defend their place in the ranking. The capital still has a clear advantage in the first place: those living in Budapest have € 9,722 per capita.
ELO (Auchan Retail Holding and New Immo Holding) and the Indotek Group have entered into a strategic partnership agreement under which Indotek will become a 47 percent minority financial investor in ELO's Hungarian subsidiaries, Auchan Retail Hungary and Ceetrus Hungary. For Auchan Retail Hungary and Ceetrus Hungary, the minority investor partner present in the real estate and logistics market represents a further development opportunity. And for Indotek, collaboration is an important element of its strategy, a new level of diversification.
Tesco has sold 14 Hungarian and 4 Czech shopping centers to the Adventum Group. The value of the transaction is approx. EUR 280 million. In seven locations, Tesco operates the hypermarkets under a long-term lease, and for the 18th property, the hypermarket building itself is not part of the transaction.
The Indotek Group has acquired a 43 percent share in Sberbank in Fortenova, Croatia, which employs 50,000 people. The price has not been announced, but the acquisition has yet to be approved by the competent regulatory authorities. Fortenova has also recently become 100% owner of the Slovenian Mercator, which is also present in Montenegro through the Idea chain.
An integrated process for the charitable takeover of food surpluses and the utilization of the remaining losses in biogas power plants has been developed in an international project called i-REXFO, of which the Hungarian Food Bank Association is also a member. The i-REXFO model is a new approach to reducing the food waste that is unfortunately on a huge scale today, which may finally pave the way for the charitable use of surplus food from the catering industry.
After Easter, the plastic bag used to weigh and repatriate fruit and vegetables, the so-called rollbag, will disappear from Auchan stores in Hungary: from April 19, customers will be able to take home the goods in the environmentally friendly packaging they have already offered.
The latest development of Budapest's city district, the Zugló City Center-project in Bosnyák Square, received the building permit. Construction of the multifunctional district center is scheduled to be completed in 2029. 240,000 square meters of usable space can be built to house year-round, functional spaces, smart offices, apartments, shops, restaurants and cafes. The implementation of the project is being developed intermittently by the Hungarian Bayer Construct Group.
The turnover of fairtrade products in Hungary has seen an unprecedented increase. This market is measured by the Association of Conscious Customers (TVE) in Hungary, the latest measurements for 2020 have now been made. Hungarians bought at least HUF 6.9 billion worth of coffee, tea, cocoa and chocolate products of this rating, which accounted for 3.5 percent of the total turnover of the categories. Actual consumption may be higher than this.
A record number of apartments are being built in Budapest still. According to the latest data of the CSO, 19,898 apartments received occupancy permits and 29,941 building permits were issued and address declarations were registered by the authorities nationwide last year. From the fact that although almost a third fewer new homes were in use, the number of new permits increased by 33 percent compared to 2020, we can forecast a surge in housing construction.
These were the highlights of the recent period in the domestic retail and real estate market. We'll be back with the most important news in our next issue! Stay tuned!