In February, buyers retained their upper hand in Hungary’s property market. However, experts shared when prices can rise again. And that will happen sooner than most people expected.
According to 10perc.hu, in some segments of the Hungarian property market, experts expect a price decrease. However, this summer, buyers will face a slow increase in prices again. It may last 3-4 years until prices reach the pre-crisis level. Interestingly, property prices in Hungary are still lower than in the neighbouring countries.
The fall in Hungary’s real estate market started eight months ago when it became clear that the government’s utility price cap scheme was no longer retainable. As a result, houses and apartments with high utility costs suffered significant price decreases. Furthermore, thanks to inflation, demand dwindled, and supply remained constant.
Zoltán Gadanecz, the owner and founder of the GDN Ingatlanhálózat, a real estate agency, said a slow increase in the sector would start during summer. However, nobody expects a spike like what we saw after the pandemic.
Furthermore, Mr Gadanecz highlighted that investors would also return to the market. Moreover, there will be a lot of companies which will no longer rent an office because that will not be worth it. Instead, they will buy one. That is how they can save money later on the utility prices.
Banks offer loans with an interest rate of around 8 percent, which is not very high, he cleared.
“Slow increase in the sector would start during the summer” – big, high, high risk, un-guarded prediction/statement.
The “Forces” spiralling the Hungarian Economy into the Collapsed position, that we have entered, descending deeper rapidly, far greater than a Recession, is HAPPENING.
We Hungary are Living in it.
The Political instability in Hungary – growing Citizens un-rest RIGHTFULLY with the Orban led Government, is a “Cocktail” of disaster – that the property market, is and will be MASSIVELY effected – by these (2) two referred – CRISIS – we are faced with in Hungary.
What is going to Stabilize the WEAKENING – economy of Hungary?
What is going to occur and how – that will enable the Hungarian economy to “find” a place, that it is able to display SUSTAINABILITY?
In these (4) four points raised in previous paragraphs – the (5) fifth is:
Who and WHY – what would encourage, draw people, to want to INVEST in Hungary?
The outside World, especially country’s Governed by DEMOCRACY – the abandonment, isolation of Hungary, all through the Political style – ideas and philosophy of Victor Orban and his Government.
The deep rooted factors of probability – that we Hungary – our Nadir, the point of WORSENING times – are of greater Factuality, than us, the capacity of us as a country – FINDING a place – that it could be said, that we are as a country broadsheet – STABLE.
I think the real fall in prices is just starting now. A lot of people are leaving Hungary for other EU countries and the population is also naturally declining (more deaths then births) which will lead to a lower demand in the real estate market. Also 8% interest rate is very high and most people will not be able to afford it with the current wages.
You should find better experts or ones who are unbiased. Of course he will say prices will rise in the summer and the interest is not high….in other words you should buy now, hurry up and buy.
The economy in general is in bad condition…they keep saying that unemployment is very low but they forget to mention that 600,000 Hungarians are working abroad. If they were in Hungary what would be the unemployment rate then?!
Concur with both commentators what they write.
Carnage is going on in the Real Estate profession in Budapest, Hungary, and the markets, expect at least another 8% -10% minimum drop in prices.
Like mass number of problem areas within the Hungarian Economy, the “Veiling” of factuality from the Orban Government – Appalling.