Home Start: Property developers in Hungary will price their apartments lower than previously planned
State secretary Miklós Panyi held consultations with the Property Developers Roundtable Association (IFK) on Thursday regarding the government’s Home Start Programme.
Lower property prices
The government already held several rounds of negotiations with major real estate developers in recent weeks. There are several developments in Budapest that already have building permits and the pre-booking of apartments will start soon, Panyi said in a post on social media.
A number of developers will price their apartments below the HUF 1.5m per sqm threshold instead of the previously planned sales prices above it, which is good news for first-time home buyers. More than a thousand such new apartments are expected to appear on the real estate market within a few months, primarily in Budapest, he added.
Home Start kicks off in September
The home purchase programme will launch on September 1, offering a 3pc fixed rate Home Start credit for first-time home buyers for the full 25-year term without exchange rate risk. Eligible properties through the scheme have a price limit of HUF 1.5m per sqm with an absolute price limit of HUF 100m for apartments and HUF 150m for houses.
Panyi noted the government has set up Home Start Programme Office to determine which real estate projects will be eligible for accelerated procedures. In the one week since the office has been running it has received more than a dozen requests for projects aiming to build thousands of affordable apartments across the country, he said.
The state secretary said he would be meeting with the Hungarian Banking Association on Friday.
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