Downtown real estate market is booming in Budapest
Despite inflation, the city centre property market is booming. Those who had given up on renovation and resale are becoming active again. AirBnB is also on the rise. Read below for more information on the newest trends on the Hungarian real estate market.
Deterioration in credit conditions resulted in less buyers
“Of course, the real estate market is not unaffected by what is happening in the world and especially in the Hungarian economy,” says Ben-Ezra Orran, an expert at Central Home. Raising the base rate is an important tool to curb high inflation, napi.hu writes. This in turn will, of course, drastically reduce the number of loan applicants. And although new-built properties have clearly been the best-selling in recent years, the deterioration in credit conditions has led to a marked fall in the number of buyers.
The most attractive apartments on the real estate market
Ben-Ezra Orran added: “In our area, in the centre of Budapest, it actually seems that the number of potential buyers who are specifically looking for good bargains has increased.” He also said that right now, the most attractive ones are the apartments that are being renovated and which, after some renovation, could be suitable for AirBnB activities, i.e. short-term rentals.
There is now more interest in smaller apartments with one-and-a-half bedroom and larger, 2-3 bedroom city centre apartments, which investors are looking to buy for exclusive resale purposes. In general, the group of buyers looking for apartments with a living room and one bedroom is looking for properties around HUF 50 million (EUR 131,300), napi.hu reports.
Shortage of well-renovated apartments
“In the last 2-3 years, the cost of renovation has increased so much, mainly due to the lack of skilled workers and the rising cost of raw materials, that many people have given up buying for renovation and resale,” concludes Ben-Ezra Orran. He also stressed that since there was a gap in this market segment due to these missed works and periods, there is a shortage of modern, well-renovated apartments. Thus, now there is renewed interest from investors. They see a business again in buying cheap, renovating and selling at a good price.
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Source: napi.hu