The real estate market in Hungary saw an upswing in the first three months of 2024, with a rise in both property supply and buyer demand. We have reason for optimism for the rest of the year, according to one expert.
Encouraging performance in Q1 for Hungarian real estate
Both supply and demand in the housing market surged in March 2023. The market was characterised by a 16 percent annual increase in demand compared to 2023, reports Portfolio. In contrast to March 2023, 8 percent more apartments were offered for sale, which represents a 40 percent increase compared to 2022.
Overall, the Hungarian real estate market has been producing commendable figures this year. January 2024, for instance, witnessed a turnover that was 43 percent higher than a year before. Moreover, the amount of total mortgage loans showed an 80 percent growth.
As we elucidated in our article covering January’s statistics, the declining interest rate and loan rates below 6% contributed to the vitality of the market. Furthermore, the renewal of home purchase subsidies was also responsible for the skyrocketing buyer interest in properties.
Csongrád-Csanád county leads the list in terms of housing demand, experiencing a 50 percent increase in demand in the southern Hungarian region. In contrast, most apartments for sale were advertised in the counties of Nógrád, Jász-Nagykun-Szolnok and Vas.
In March 2024, Budapest saw a 16 percent increase in demand. However, there was a decline in the number of homes offered for sale, with 8 percent fewer ads placed compared to the previous year, resulting in a total of 12,000 properties advertised.
László Balogh, the leading economic expert of ingtalan.com, holds an optimistic view regarding the future of the housing market. He anticipates a significant increase in market activity in 2024, projecting a 15-20 percent rise in turnover compared to 2023. This would entail approximately 120 transactions completed within the year.
Budapest: an outlier in pricing trends
The increasing supply of properties for sale benefits homebuyers, compounded by the recent reduction in interest rates on home loans within the country. Moreover, heightened demand in the housing market facilitates the sale of their own properties, which speeds up the process of purchasing a new home and relocating.
Furthermore, as Portfolio points out, the upturn in demand has not resulted in a significant increase in prices thus far, which is advantageous for prospective buyers.
Photo: depositphotos.com
However, as we previously covered, property prices in Budapest present a different scenario: at the onset of 2024, they experienced significant growth. Consequently, in mid-March, the average price per square meter of a brick apartment in the capital surpassed the psychological threshold of HUF 1 million (EUR 2.533).
Despite historically low demand in 2023, prices in Budapest surged, indicative of a nine-year depression in the country’s real estate market last year. Notably, our article highlights stark price discrepancies among different districts within the city.
Read our other reports on the real estate market:
Positive changes at Lake Balaton: Far more holiday homes for sale than in 2023
Will the luxurious mini Dubai propel real estate prices to new heights in Budapest?
Source: Portfolio
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1 Comment
“The Real Estate Market saw an up-swing in the first three months of 2024”.
This leaves open numbers of questions that need transparency that allows the General Public to be presented with DEEPER facts of the “claimed” terms used of up-swing, surge and skyrocketing.
This commentator believes this article is extremely thin, just “skimming” the surface, not COMMUNICATING what still is a Real Estate / Property & Rental Market in Budapest, Hungary that REMAINS under extreme DURESS.
Experts far afield and inside Hungary are CORRECT in reporting commentating that the ENTIRE Economic & Financial “landscape” of Hungary is in a diabolical MESS.
Experts far afield and inside Hungary are CORRECT in reporting that the Forint can’t be sustained and will again sooner than later rise above the 400 mark, places IMMENCE deepening problems on the “collapsing” Hungarian Economy.
Interest Rates this article records below 6% – the renewal of new home subsides as claimed in this “questionable article are a major contributing factor to the Up-swing, surge and skyrocketing over-all pattern of the Hungarian Real Estate Property Market “blood transfusion” atmosphere for the first 3 months of 2024.
Interest Rates – it’s a HIGH Risk “punt” or gamble the Hungarian Central Bank are playing, with Interest Rates that will come back to “bite them” and Hungary nastily.
The current Finance Minister of the Orban / Fidesz Government of 8 years – Mihaly Varga – we are “bearing” witness to the WRONGFULNESS in the direction he has directed our Economy, that places us in this position of not knowing the Depth, we Economically & Financially – the ZENITH of it’s Decline.
It will WORSEN.
Nothing has FACTUALLY changed other than increased number of SELLERS over Buyers – in the real Estate / Property Markets of Hungary.
SELLERS just SMOTHER the number of buyers, which has post February 2020 ben a continual pattern and will REMAIN in Hungary for Longevity.
We build on, we renovate on but a population AGEING in Hungary, deaths to new born, over the past 15 years been the monthly pattern, then the Economy, the Political in-stability of Hungary, the distillation of Democracy growing RELATIONSHIPS with Russia & China – possible the expelling or leaving of the European Union, N.A.T.O. and Schengen – mass trepidation – encased in Fear & Anxiety of our FUTURE.
Expansion of this article, that CLAIM, in the first (3) three months in Hungary that the Real Estate / Property Market has – the capturing of word(s) usage of – up-swing, surge and skyrocketing should have included :
(1) – Budapest, is divided into (23) Districts.
– by District – what number of Property’s where factually SOLD ?
– what was the “mean” – average price of the sale of property’s per District ?
(2) – Sale of Property’s outside the (23) Districts of Budapest:
– where were THEY ?
– what was the “mean” – average price of there Sale ?
DEEPER clarity to SUBSTAINIATE the claim(s) of – up-swing, surge & skyrocketing SHOULD have been INCLUDED in this “compromised” article.
There remains Carnage, turmoil “grave” un-certainty in-side the Real Estate / Property & Rental Market Profession in Budapest, Hungary that FACTUALLY continues to be FLOODED with on-going increases on there books of SELLERS over those “knocking ” at there door, wanting to PURCHASE buy property’s in Budapest, Hungary.
Is FOREIGN investment into the Real Estate / Property Market going to be it’s SAVER ?
Answer is NO.
SMART investors looking long term, not a “quick” return from there Investment into PROPERTY, understand, that because of the FACTUALITY of the grate un-certainties associated with Hungary, being Economic & Politically, moving from a base of Democracy to a “Dictatorial” regime, closely aligned to Russia & China, to make Property Investment, in FACT any investment into Hungary, is FRAUGHT with gargantuan DANGER – High. high RISK.
This “tone” the wording explanation(s) contained in this article, the picture it ATTEMPTS to paint, is JUST from what the PROFESSION – of Real Estate & Property Agents – want to HAPPEN for there survival and want the CITIZENS of Hungary to believe is FACT, when all it is PAINTING is just a fabrication of truth & fact – what goes on, will continue to Go On – in the Real Estate / Property Market(s) of Hungary.
We must not be GULLABLE nor FOOLED by somewhat of a propaganda process that continues to be somewhat repetitive coming out of the Real Estate / Property Profession/Agents in Hungary.
THEY survive through the “lining” of there pockets by the FAT commissions they are paid receive from the SALE of a property.
THAT first and foremost is there AGENDA – what’s my COMMISSION ?
Purchase of a property is a LIFE time Investment.
Hungary – is a HIGHLY vulnerable “broadsheet” – High Risk Investment.