Speaking with one voice

A number of Hungarian developers have set up an interest group. one of their main aims is to make their voices heard when the state takes key decisions. They also hope to improve the industry’s image in the public eye, which often sees real estate firms as something akin to demons

Gergo Racz

July marked the founding of the Property Developers’ Roundtable Association (IFK), an interest group comprising some of the most prominent development companies in Hungary. The founding members Ablon, AIG Lincoln, Biggeorge’s, Futureal, GTC Magyarország, ING, IVG Development Hungary, Orco, Skanska, TriGranit and Wing claim they have now formalized an association that will provide long overdue interest representation for the industry. “Property development is a major contributor to national GDP, not to mention the fact that construction creates many jobs, especially for workers with lower qualifications – so there is also an important social factor,” Gábor Futó, CEO of Futureal Holding told ‘Eurobuild CEE’. “Given our role in the national economy, it is only natural that we want to have a bigger say in policy-making questions, and this is why the association was founded.”

Having established a single entity to represent them, they now hope that it will provide the industry with a bigger push, while the economy in general would also benefit. Also, there are matters of public image. “What I believe to be one of the most important missions of the association is to counterbalance the common opinion that real estate developers are somehow the manifestation of natural evil,” claims István Hajnal, CEO of Biggeorge’s.

“The profession is constantly scorned by the public, who feel that new developments are launched with the sole purpose of erecting shopping malls and office buildings, while taking away community spaces and destroying historic buildings. This is a key prestige issue that we are striving to address and as a result improve the reputation of the industry,” Mr Hajnal adds.

“The members of the association have built billions of square meters of space and these are areas and facilities that Hungarians use for business or during their everyday activities on a regular basis. It would be unfair to leave developers out of important policy-level decisions, since they have contributed so much. And we feel the roundtable is a good tool to achieve this goal,” he added. “It is also important to point out that the group comprises local as well as foreign companies, showing that the sector has common goals and that its players are capable of keeping their eyes on these targets regardless of their nationality,” Mr Futó explains.

The group is already seeing a positive response. “The government was willing to accept input from us and take our opinions on board when drafting the latest new tax laws, which is a very good sign and a positive development,” Mr Futó concludes.