Huge growth: Hungarian real estate market takes off in January
The Hungarian real estate market started the year actively, with turnover 43% higher than a year earlier. Meanwhile, the mortgage loan amount showed an even more dynamic growth of 80%, according to real estate agency Duna House.
Duna House’s estimate of 8354 transactions in January indicates an increase of 6% compared to December and 43% compared to January 2023, Üzletem.hu reports.
The active start to the year can be explained by the postponement of transactions from last year and the deliberate preparation of transactions for January, the sales generated by the new, expanding home purchase incentives and the rising confidence due to the declining interest rate environment.
According to Duna House, both home buyers and sellers can expect an increasing real estate market in the first quarter, which may be further strengthened by the declining interest rate trajectory and the availability of loan rates below 6%.
According to domestic data from Credipass, the Duna House Group’s international financial brand, the credit market continued to strengthen in January after an active year-end. Credipass estimates a contracted volume of HUF 73.5 billion in residential mortgage loans for the first month of the year, an increase of 80% year-on-year.
In January this year, the impact of the renewed home purchase subsidies on demand is clearly being felt. The Duna House Demand Index (Keresletindex) almost doubled compared to the end of last year, rising from 45 to 87.
Nationally, customers were more likely to buy properties in good condition in the first month of the year. With the exception of Western Hungary, where the second most sought-after property condition was the habitable category, in all areas, very good condition was preferred after good condition. Based on sales data, the proportion of properties to be renovated was weakest in the East, with the strongest propensity to renovate in the West at 13%.
Budapest vs countryside; investment vs first home
Among those buying a property in the capital, the majority of those buying a property were those aged 30-40, at 24%. The main buyer motivation was investment, at 36%, and the proportion of first-time buyers increased by 1 percentage point compared to last year. Customers spent HUF 57.7 million on investment and HUF 38.9 million on their first home.
In rural areas, first-time homebuyers outpaced investment buyers in terms of buyer motivation, with a 26% presence, and their activity declined by 13 percentage points compared to the same period last year. First-home buyers spent HUF 30.6 million on property, while investment buyers spent HUF 27 million.
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