Last year’s crisis, which started with the American loan market and the shocks on the stock exchange, has initiated positive trends in certain markets. As János Hidasi, Director of the Valuation Division of Colliers Hungary, points out, this is why 2007 proved to be a record year for Colliers Hungary in the dynamically growing field of valuation services. Investors still pay more attention to the safe Hungarian real estate market which offers good yields, where the limited risk taking and the well-criticized conservatism of domestic banks have been very beneficial.

2007 experienced a strong interest in valuation services, which may be partially related to the American crisis. Banks are reacting to risks with stricter and stricter measures. According to János Hidasi, the rising importance of valuation has, however, a normalizing effect on the real estate market - i.e. real estate is transacted at more and more realistic prices.

There has been a lot of criticism about the conservatism of the Hungarian bank system in regards to the aspect of the development of competitiveness. This is due to the efforts of the banks to reach an exaggerated level of security; therefore, a similar loan crisis is not expected to occur in Hungary. While the 2007 western European investment market proved to be difficult, Hungary was still considered a developing market by real estate investors even though the margin in Hungary has narrowed in comparison with the yields in the European Union.

After the restrictions had been announced for the previous year, the news of the economy’s slowing pace was acknowledged by the investment market with relative discipline. However, considering the present political processes, it is questionable how positive market changes may be sustained, but if there is a relaxed investment environment, 2009 and especially 2010 could be successful years on the real estate market.

Colliers’ experts even expect good and expanding market opportunities this year in the market of the valuation field. János Hidasi thinks that a market purification due to the maturing processes of the market as well as the more conservative attitudes of banks will be inevitable and necessary this year.