Hungarian real estate market prognosis: brutal price falls and partial collapse
The Hungarian real estate market is currently experiencing the “years of waiting”. At the moment, the market is mostly waiting, vegetating, surviving. Obviously, this is like a death sentence for the property market participants; however, there is still hope that the market will experience soaring like that of the past 6-7 years.
Since the Covid pandemic in 2020, it has been a constant struggle, uncertainty, reorganisation and challenge for every segment of the domestic real estate market, Portfolio writes. The housing market crashed, then boomed and now it has crashed again.
Declining number of transactions in the real estate market
The property market is currently living the “years of waiting”. The incoming data keeps suggesting difficulties the market is experiencing. The basic functioning of the market is derived from the continuous and stable operation of the business. Transactions are what enable this operation. Unfortunately, that is what is in short supply at the moment.
Although the market is not even close to what it was experiencing during the 2008 financial crisis, the soaring of the past 6-7 years and the business models built on them have started to crack here and there. These are years of wait-and-see caution, which is the silent killer for market participants, Portfolio writes.
People prefer cheaper, less energy-efficient properties, contrary to expectations
Otthon Centrum has carried out an analysis of the energy efficiency of real estate. It shows that energy efficiency increases the price of the property. This is one of the reasons why the forecasts for an increase in demand for energy-efficient buildings have not materialised. The majority of Hungarians are buying cheaper, less efficient properties.
As the effects of climate change become more and more tangible, environmental awareness is gaining more and more attention in all walks of life. In Hungary, energy performance certificates have been mandatory since 2012 for the construction of new buildings, for the sale of existing buildings and for the rental of property, Index notes.
Based on the data for the first half of the year, it appears that expectations of a shift towards more efficient properties have not materialised, with cheaper but less efficient properties selling this year.
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Thank God!
I’m almost hopeful, that the younger generation doesn’t have to be indebted for 200 years, for living in the cheapest homes.
The entire economy is about to fall into a deep recession. Hopefully a long one! so maybe people will decide not to vote for their Viktator in the next elections.
With Orban the real estate industry is surging on locals and the influx of Chinese buyers. Westerners exercising options other than Hungary. Orban is creating the uncertainty. Soon he will implement an additional 15% tourist tax for all tourists for all services
Good bye tourism and this will lead to a further decrease in property values.
Those that KNEW, had the knowledge, experience and intellect, had put Orban – “on notice” – that what was occurring pre the arrival in February 2020 of the Corona Virus, the the policies coming out of his Government, relating to the Real Estate – Property Market, where WRONG.
The moveability – if factors in the Hungarian Economy went “off the rails” and Corona Virus arrived and devastated Hungary, which we still are HURTING.
The Corona Virus is not solely the reason, why, for the past (2) two years, factually happening inside the Real Estate & Property Markets has been an atmosphere of Carnage.
That’s what it is WORSENING as I commentate, and to the nadir, it descends, an UGLY aftermath will be witnessed.
Paramount – in the carnage in the Real Estate & Property Market, which we know Interest Rates have not FALLEN, is the FACT, that as we have built on and on, apartments flats, housing, renovations on and on, opened new hotels on and on, the MARKET – has become SATURATED with SELLERS.
We know post February 2020 – statistically, the disappearance of foreign investment into the Real Estate & Property Market, of which the big (3) three, prior to February 2020 in this order were – China, Vietnamese and Germans.
The Russian War on the Ukraine – led by the FRIEND of the Prime Minister of Hungary and his Government – Victor Orban – arrived, but we BUILT on and on.
Throughout this period in time pre February 2020 to present time – the ECONOMY of Hungary has been in a MASSIVE downturn.
Post February 2020, through the wrongfulness in his dealing with the European Union, that single handedly, the Prime Minister of Hungary – Victor Orban, has incinerated the name Hungary with Brussels, and the funding NEED of us as a country to SURVIVE has CEASED.
We have built on and on, whilst the Economy is collapsing all round us – Hungary.
Carnage inside growing in the real Estate Property Market.
Sellers outnumbering buyers growing in number, that the disproportion, the gap of sellers to buyers is MINDBOGGLING, in a dangerous trend pattern, that the carnage in the Real Estate / Property Markets, will continue.
Prices can’t be sustained as they are as PRESSURES from both inside and outside of Hungary – the on-going War, the “atmosphere” inside Europe, and globally, inclusive of the European Union, the complete SUSTAINABILITY of the entire Hungarian Economy, is in a state of COLLAPSE.
The final damage picture personal human damage – the sellers, for what ever there reason(s) may be to be SELLERS – and within the personal staff employed in the Real Estate / Property professions – leaves me Crestfallen.
We build on – Ludicrous.
What we are seeing in the market is people trying to buy cheap energy inefficent properties and then spending the extra on them to make them more energy efficient. This often more expensive, however, many see spending money over time as the easier option than paying out for a more expensive property.