Portfolio.hu examined whether real estate prices in Budapest can be subject to either a positive or negative change in the near future. Here is what they found.
We have already written about it that real estate prices are at an all-high: in Budapest, prices per square metre are as high as 1200 euros. Based on GKI’s April results, increase in Budapest flat prices will not be higher than that of 2017. Last year prices grow with 3-4% regarding used flats, while newly built houses’ increase was even 5-6%. However, newly built homes and flats can be expected to reach 6% in price increase according to the latest statistics.
Another new indicator entering the real estate market is the 5% tax discount for newly constructed houses – it is questionable how this change will affect the real estate market.
According to András Cordines, „as overpricing was not typical during last year, this year more reasonable prices are to be expected”. As the expert of Tower Real Estate office says, prices have already reached the level, above which overpriced flats would also be appealing to buyers. On the contrary, overpricing may decrease or completely disappear this year.
There have been changes in the waiting period of sellers for the real estates to be sold – only flats of high standard get sold easily and quickly, other owners might have to wait longer.
More and more owners devote themselves to the renovation and modernisation of the flats. Budapest is becoming more and more attractive to foreigners and investors. However, it is luxury real estates that attract most foreigners with outstanding quality, which the market can only benefit from regarding the quality of estates. Unique estates are therefore sold easily, transactions are being made and as the demand is stable – or even growing -, the supply side can get stronger.
András Cordines claims that there is no reason to worry if both owners and buyers get accustomed to the reality of prices.