Experts predict rising real estate prices in Hungary amid mortgage changes, government disagrees
The price caps in the programme for the 3 percent fixed rate Home Start credit for first-time home buyers will prevent real estate prices from rising, the parliamentary state secretary at the Prime Minister’s Office said on Sunday.
Real estate prices
Miklós Panyi said on Facebook regarding the fixed 3 percent loan that many left-wing commentators and opposition party leaders were warning that this would increase real estate prices by as much as 20-40 percent. Panyi countered that there are over 100,000 properties for sale in Hungary that qualify for the programme, in rural areas, in large cities, and in Budapest.
In addition, many thousands of properties will enter the real estate market that have not been offered for sale until now because there were no buyers, he said. Panyi also noted that over 10,000 home developments targeting first-time buyers will start in Budapest in the autumn, significantly expanding supply, and that eligible properties in the scheme have a price limit of 100 million forints for apartments and 150 million forints for houses.
Tension is already noticeable on the market following the announcement; expectations are being factored into prices, and further price increases may be expected immediately.
According to experts, price increases of 10-15% are realistic in 2025, and in certain segments, even 20% is possible, especially where supply is limited, such as in Budapest or popular regions.
The latest statistics from the Hungarian National Bank show an annual price increase of 14.5% nationwide, which could be further increased by reviving demand.
Not all segments will see drastic price increases, as expanding supply and restrictions (e.g., purchase price/square meter caps) may moderate price growth—but the trend is toward sustained price increases, Mfor says.
Read more news about real estate prices in Hungary
Other articles in the topic:
- Good news for tenants: New home loan could slash Budapest rents by 17%
- Home Start: Property developers in Hungary will price their apartments lower than previously planned