The Hungarian government has announced plans to establish real estate investment trusts (REITs) in the country in an effort to boost investment activity and to attract foreign capital. According to Hungarian press reports, the Hungarian structure will allow REITs to invest in development projects as well as in existing assets.

The trusts would be listed on the stock exchange and would have the obligation to redistribute around 90% of their profits to shareholders.

The Fidesz-led government of Prime Minister Viktor Orban came to power last year with the promise of making Hungary 'the 21st century financial services centre of Central Europe'.