Good news: 2025 will be a better year in Hungary’s property market, says Duna House
After this year’s reversal of trends, a strengthening real estate market in terms of transaction numbers and prices, an ever-widening customer base, and a further 10pc expansion of the credit market are expected next year, listed real estate broker Duna House said in its forecast for 2025 on Friday.
The company said government measures, like the Home Purchase Subsidy Scheme (CSOK) Plus, housing allowance from employers used for rent and loan repayments, state-subsidised credit for young Hungarian blue-collar workers, could raise demand and from the investor side capital from government bond payments could add 20,000 transactions.
Duna House expects supply will not be able to keep up with buyer interest, so it is possible that prices will start to increase to a greater or lesser extent depending on the property type, condition and location. Annual price increase could be around 10-20pc in 2025.
The company said annual home sales this year could be around the middle of the 110,000-130,000 band, which is an approximately 14pc increase compared to 2023 and a two-year high.
Central bank issues instructions to boost competition on home insurance market
The National Bank of Hungary (NBH) has issued four executive circulars in connection with the annual home insurance campaign due in March instructing insurers and insurance brokers on best practices to boost competition on the home insurance market, the central bank said on Friday.
The NBH instructed insurers on displaying data to help consumers compare offers and switch insurers.
It also made the conditions for announcing consumer-friendly home insurance premiums more flexible to make these policies more competitive with conventional ones.
The NBH also made it clear in the customer information document that contracts cancelled during the campaign uniformly terminate on April 30 (until which date the premiums must be paid). In order to protect their property, the customers concerned must have a new insurance policy from May 1.
Another circular concerns the term discounts offered by several insurers (the principle that those who contract for a longer period pay a lower premium). Due to rapidly changing customer needs, the NBH considers a maximum three-year discount to be good practice.
In the circular addressed to insurance brokers, the NBH said it expected insurance brokers to review the policies of customers with active home insurance contracts every two years. Insurance brokers must inform customers on whether their insurance policies cover the value of the insured assets. They must also inform customers on the option of consumer-friendly home insurance.
The NBH also touched on condominiums, calling on insurance brokers to develop online calculators to help condominiums with a maximum of six apartments choose between offers. For larger condominiums, the NBH urged insurance brokers to contact their representatives in January or February in order to review the condominiums’ property insurance.
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