Cycle turn in Hungary’s property market
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According to the experts of the OTP Ingatlanpont, there will be no real estate apocalypse in Hungary. But the steep price increase that started nine years ago ended. Experts believe there is room for negotiations now on the Hungarian property market even though that opportunity does not concern all segments. According to the OTP Ingatlanpont, buyers will encounter new options in the Hungarian real estate market.
According to index.hu, the Hungarian property market halted last year after prosperity lasting for almost a decade. Price correction hit the market in 2022, Dávid Valkó, a leading analyst of OTP Ingatlanpont and OTP Pénzügyi Pont, told index.hu. He added that the price fall is much lower than the rise before. Furthermore, they will last for a shorter time.
He added that, in 2022, the market’s turnover decline was 10-15 percent. A decrease can follow that in 2023 and this year can be the nadir in that regard. But nobody can predict whether the property market will stagnate or increase again after that period.
He said that during the COVID pandemic, people tried to get out of the crowded cities to the suburbs. As a result, villages and towns around Budapest and other Hungarian municipalities faced the greatest price increase rate in Hungary between 2020 and 2021. 2022 marked cost increases, too. But the trend changed. People started to search for small apartments in Budapest and the big cities to avoid the negative consequences of soaring energy prices.
“There is a correction regarding the prices in the property market”, Mr Valkó highlighted. He added that there was no sign of a depression similar to the one between 2008 and 2013.
