Hungarian real estate market – Forecast for 2020!

Thanks to the continuous development of the real estate market in the last few years, Hungary has gained a significant role in the international property market.

“2020 is expected to be the year of buyers in the property market”

– reported László Balogh, senior economic analyst of ingatlan.com – to MTI.

According to the expert, 2019 began with a significant number of property sales compared to the previous year’s results; however, this increasing tendency started to cease soon.

Since mid-summer – primarily due to the Hungarian Super Bond providing a good return – customers purchasing for their own purposes gradually took over the place of the formerly dominant investors in the real estate market.

He added that this change does not necessarily bring lower prices, but buyers might be in a better position.

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According to László Balogh – in big cities, condominiums are the most popular properties. In 2019, the most demanded properties were the block apartments, whose price was dynamically increasing in the last few years; however, no further price increase is forecasted for 2020. He added that last year, the popularity of newly built homes was also significant – reported by the Hungarian news portal 24.hu.

“This can be explained by the 5% VAT on residential properties and the fact that a record number of newly built homes were realised in 2019”

– commented the expert, adding that high urban property prices gave rise to the real estate market of the surrounding small villages.

“Furthermore, from July, Family Housing Allowance ‘CSOK’ will be demandable in the case of second-hand apartments as well, resulting in the improvement of the housing stock quality in small settlements” – said László Balogh.

The expert also emphasised that thanks to the development of the real estate market in the last few years, Hungary has become a target country of foreigners in the international property market.

“This year, every 20^th purchaser was a foreign buyer in the Hungarian real estate market. Their proportion has achieved almost 10% in Budapest, while properties around Lake Balaton have been popular among purchasers coming from Western Europe” – he added.

Source: MTI; 24.hu