Due to the brutal high inflation, rising loan interest rates and drastically increased energy prices, the real estate market will also face adverse changes. Read our article and find out how much an apartment is going to cost in a year!
Portfolio has asked nine real estate experts about market trends regarding prices, supply and demand, housing construction and rents. Here is what they predict for the real estate market in Budapest.
Although apartment prices have risen since the pandemic, the price increase may be smaller in the coming year. According to some experts, an increase of between 0-4 percent is expected until the end of the year, while others predict 2-7 percent until September 2023. On the other hand, in real terms (adjusted to inflation), the value will be negative. This means that, although the numbers are going up due to inflation, the price increase will not be that significant. However, it is worth making a distinction according to the condition of the property. High utility costs will definitely be visible on the price tag of apartments in worse condition. In addition, family houses will be the most affected.
As Pénzcentrum writes, the increase in apartment rental fees surpassed experts’ predictions. Compared to the low point during the pandemic, the increase was more than 30 percent. However, owners must pay attention to the energy efficiency of the apartment. In the case of apartments where the electricity or gas consumption exceeds the utility reduction limit, demand can drop significantly. On average, in Budapest, the majority expect a significant slowdown in the increase in rents.
According to Ákos Balla – Balla Ingatlan, apartments in the big cities will have a greater interest. He also added that moving to the countryside will still not be attractive. Moreover, Benedikt Károly – Duna House said: “Primarily, the demand for real estate in the capital and big cities may pick up in the market of the next period and typically properties with fewer square meters and modern energy features, as well as newly built apartments will be the primary winners of the changes in the market.”
Most experts believe that newly built apartments in the capital and the new economical constructions in the countryside will be the most popular ones. Apartments should be compact, in good condition and they should at least have a CC energy rating to be attractive to buyers.
Source: portfolio.hu, penzcentrum.hu