Boost to be expected on the Budapest housing market
While the prices seem to have come to a sudden halt in some of the districts of Budapest, in others they continue to rise. The number of transactions on the real estate market recalls the years before the economic crisis; the number of sales could be boosted by the market of the newly built real estates, Origo.hu reports.
The prices of the real estates in Budapest climbed 20% over a year, in 2016. There are only a few other markets in Hungary which produce at least slightly similar prices as the capital city. Origo.hu informs that, while one square metre of flat costs 1538 Euros in average in Budapest, there is no higher average price per square metre than 1290 Euros elsewhere in the country, except for two regions around Lake Balaton.
There are huge differences not only within the country but also within the capital itself. The Inner City is the most expensive: one square metre may be over 2258 Euros, and it is increasing rapidly. Meanwhile, in other districts, prices seem to come to a halt. Moreover, in some cases, prices have slowly started to fall, Origo.hu admits.
The improving of the financial situation of the population, better employment opportunities, wage-increases, cheap loans and state-aids also contribute to the raising demand. Besides, investors are also present on the market.
Huge differences are to be expected in the demand in 2017. Investors can meet the demands of the market of newly built flats only years later. Thus, in the last few years, the range of choices was not so wide; mostly renovated flats were availible for people demanding newly built real estates.
Of course, investors have started many constructions, Origo.hu writes. Based on the information of the Hungarian Central Statistical Office, although less than 10 000 new flats were built last year, three times more building permits were issued than in 2015 – this number exceeded 30 000.
There are more than 300 developments in the capital. In the 13th district, for example, more than sixty projects have been launched. In the frame of the major projects, hundreds of flats have been sold. One of the greatest investments is at Kopaszi Gát, being on Buda side. Other important investments are the Buda Bolero, the Sasad Residential Park, the Lavender Residential Park, the City Home and the Elite Park. The price of one square metre may vary between 968 and 4840 Euros.
Some projects will be finished only in the end of 2018, or in the beginning of 2019; nevertheless, many flats have been already sold. For example, all the keys have been handed over to the new owners in the Metrodom Residential Park, in the 3rd district. By the end of 2017, thousands of new flats will be offered for costumers.
This number is still not considered enough, because new inventions are continuously being announced. As there is not enough supply, even cheap loans and allowances for family home establishments could not boost demand either. However, serious differences are about to come this year.