According to experts, a huge change is coming to the Hungarian real estate market at the beginning of 2023. They believe that there will be properties that will lose their value. Within a few months, the Hungarian real estate market will also adapt to international market trends.
Real estate experts discussed the future of real estate in Hungary at the first Forbes Money Summit. Editor-in-Chief Márton Galambos talked to Ákos Balla – owner and managing director of Balla Ingatlan, László Balogh – leading economic expert at ingatlan.com and Balázs Sándorfi – founder and managing director at Bankmonitor.
These will be the changes in the real estate market
“[…] There is no such scenario where the price of real estates cannot fall”, emphasised Balázs Sándorfi from Bankmonitor. This is also true for the Hungarian market, since the price of several forms of investment and assets is falling because the market affects it. “The European real estate market will experience price increases later, while the American one reacted earlier,” he added. In addition, Ákos Balla from Balla Ingatlan expects a change in the real estate market. Until now, it was a demand market, but now the market has reached a turning point, which is only further supported by the fact that utility costs are also a consideration when buying apartments.
Is a crisis coming?
László Balogh, the leading economic expert of ingtalan.com can already see a coming crisis, writes forbes.hu. In the last period, demand and supply roughly equalised each other. However, in the last one or two months, the situation changed. There are more advertisements than interest in properties, and demand has decreased. László Balogh also points out that the European or American real estate prices are not always relevant for Hungary. As the real estate market is very local, incomes and the proportion of self-owned apartments are different.
Real estate market splits to energy-efficient and inefficient properties
According to László Balogh, after the increased utility bills, the first major move of the real estate market may come in January 2023, reports Index. The real estate market has divided into energy-efficient and inefficient properties. The price of energy-efficient properties may increase at a nominal level, but at the same time, we may be in trouble in real terms. The prices of new apartments, which have produced the greatest growth in recent years, are starting to lag behind the increase in real value. According to the expert, there are enormous opportunities from an investment point of view. If someone buys the properties in poor condition for a good price, renovates and modernises them, they can sell the properties with lower utility costs.
Read also5 things you should know about Hungarian people before you travel to Hungary
Source: Index, Forbes
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