Purchasing a home is still a large investment in Hungary, but there are several reasons why buyers can spare millions of forints (tens of thousands of euros) if they bargain successfully with sellers in the Hungarian housing market.
Property prices have been stagnating in Hungary in the last couple of months. Due to the high inflation prices have reached their peak, but buyers cannot enter the market just yet as interest rates remain high as well. But as László Balogh, ingatlan.com’s chief economist points out to rtl.hu, buyers have a good tool in their pocket to considerably lower asking prices.
Shifting priorities in the housing market
As we have previously written, prices in the real estate market have started to stagnate and even lower in some cases, both in Budapest and in the Hungarian countryside.
According to László Balogh, even small changes – like how the square metre price fell by 1.7 percent in Budapest’s popular district XIII– could lead buyers to spare millions of forints compared to previous months.
But the price scissors could grow further in the following months, as due to the utility crisis homes with high utility bills or buildings that are due for renovation became much less desirable. Therefore, buyers should be able to bargain from the asking price.
“Sustainability and energy efficiency have become an important factor for buyers because they are not only considering how much a property costs and how much credit they have to take out, but also how much they have to spend on its upkeep” – László Balogh said.
“There is a growing disparity in monthly maintenance costs. Demand for properties with poor energy performance has fallen more and they have lost more in price. Properties in better condition, more energy efficient and with lower utility bills are now doing better on the market.”
“It is no longer uncommon for buyers to be able to get a bargain of up to 10-15 percent for properties that are in low demand because, for example, they have a very large floor area, are not insulated well, and have extremely high energy consumption.”
The economist also mentions that due to high-interest rates demand has fallen drastically in the past months, and the low number of transactions is keeping the prices in check for the time being.
The worst time to buy real-estate, just before the fall/recession.