An unprecedented change occurred in the Hungarian real estate market!
The Hungarian real estate market is undergoing a massive change. The demand for apartment buildings for sale and rent in Budapest remains the same though. However, all in all, fewer buyers are looking for apartments, and people are more willing to sell their properties for a cheaper price. Read our article to find out what to expect in the Hungarian real estate market!
High demand for Budapest apartments remain the same
Since the beginning of November, the demand for Budapest rentals and apartments for sale had been essentially the same, writes 24.hu. Throughout November, ingtalan.com data showed only a slight 2-4 percent fluctuation rate among rentals and properties for sale. Interestingly, this occurred despite the fact that there are way more apartments available for sale than for rent. Buyers in Budapest could choose from 31,250 apartments, while those looking for a sublet in the capital could only pick from 7,150 offers.
What triggered the change in Hungarian real estate?
According to László Balogh, a leading economic expert of ingatlan.com, the reason behind the new trend was that buyers usually waited out the right time to buy or rent real estate. “Due to the current uncertain economic climate and the high-interest rates on home loans, even those with urgent plans had to postpone purchasing a new home. Many buyers bridged that period by renting. In addition, at the end of the year, the number of inquiries for apartments for sale is traditionally lower”, says László Balogh.
Lowered interest among buyers?
Demand in the real estate market has considerably plummeted since May, reports hellovidek.hu. Potential buyers are playing a wait-and-see game, while investors prefer to look elsewhere given the current volatile economic situation. Zoltán Gadanecz, founder-owner of GDN Real Estate Network says that in the case of a HUF 50 million (EUR 119765,33) apartment, owners would sell it now for HUF 5 million (EUR 11976,52) cheaper.
What to expect in the Hungarian real estate market in the future?
According to Portfolio, people living in Hungary can expect a 15-20 percent decrease in real estate prices. After the record price increase in the first half of the year, the second half of the year brought an exceptional slowdown. However, in 2022, we can still expect serious price increases on an annual basis. Regarding Budapest, apartment prices will increase the most in cheaper districts . In one year, the price of the area covering most of Kelenföld in district XI and Külső-Ferencváros in district IX rose by over 50 percent.
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Source: 24.hu, Portfolio, hellovidek.hu