Ever-growing Hungarian real estate prices do not seem to decrease

Portfolio.hu examined whether real estate prices in Budapest can be subject to either a positive or negative change in the near future. Here is what they found.

We have already written about it that real estate prices are at an all-high: in Budapest, prices per square metre are as high as 1200 euros. Based on GKI’s April results, increase in Budapest flat prices will not be higher than that of 2017. Last year prices grow with 3-4% regarding used flats, while newly built houses’ increase was even 5-6%. However, newly built homes and flats can be expected to reach 6% in price increase according to the latest statistics.

Another new indicator entering the real estate market is the 5% tax discount for newly constructed houses – it is questionable how this change will affect the real estate market.

According to András Cordines, „as overpricing was not typical during last year, this year more reasonable prices are to be expected”. As the expert of Tower Real Estate office says, prices have already reached the level, above which overpriced flats would also be appealing to buyers. On the contrary, overpricing may decrease or completely disappear this year.