Hungary housing market facing big challenges in next 2-3 years
Property developers face momentous challenges in the next 2-3 years due to ballooning construction and financing costs, a property association head said on Tuesday.
Inflation and high energy prices are bumping up the price of building materials, Gabor Kiss, vice-president of the Property Developers Roundtable Association (IFK), told a press conference.
Financing costs are also growing on the back of higher interest rates, with a knock-on effect on mortgages and loans to property developers, he said.
Costs for property developers are expected to increase by 20 percent,
he added.
Growth potential for the Hungarian housing market looks promising in the long term, however, he added.
He called for measures to be taken as soon as possible to slow down inflation, arguing that real estate developers can work well “in a predictable manner in the long term in an inflationary environment of 3 percent”.
- read also: Property prices doubled in the past two years in most of the settlements around Lake Balaton
Kiss said the way in which the state structures its family support and home purchase subsidy schemes in the current tough economic environment would “actively” affect the number of homes being built in Hungary.
“Over the past period, 20,000 homes have been built on average per year, whereas 30,000-35,000 would be desirable,” he said.
Kiss noted that
the total size of office space in Hungary has reached 4 million sqms, adding that further developments were under way in the sector.
Read alsoWhat’s next?! Further price increase to come in Budapest’s rental market!
Source: MTI
3 Comments
Correct.
You don’t need to be a Rhodes Scholar, if prior to February 2020 and post that date, with the Russian War on the Ukraine, that the property market, in Hungary, was going to experience MASSIVE challenges.
The continual rise in Interest rates, not HELPED, by a WEAKENING economy, that ALL major componentry of the Economic & Financial “broadsheet” balance sheet, the Gigantic pressure on the forint, continueing to Weaken, against all other Major currency’s – the ZENITH – what is going to occur, is Scary.
It was CORRECT, that prior to February 2020 – the SELLERS in the property market – outweighed the Buyers.
The property market mid June 2022 – the market in FACT, is SATURATED with Sellers, which compounds confirms – the state of the property market, and that a “blood bath” – we will witness.
What still is of amazement is we build on and on, new flats, apartments,houses plus renovation of property’s – which, will make and contribute, to the property market in Hungary, not a pleasant environment.
Reports on the over-all property market, in Budapest, Hungary have been passive post February 2020.
Sadly, the information, that has been getting released to citizens has been “Veiled” in secrecy.
Questions back directed into Government have to be asked, that what has been permitted to be released out and into the citizens arena, has it been ONLY what the Government, what Released ?
Fact of the over-all position of the property market in Hungary, is “creeping” out and will be intenisified without any “other” party’s vetting nor approval.
The property market – in Budapest, Hungary – is in MASSIVE Trouble.
Sustainability – is the key word looking at the Budapest, Hungary property market,
What in the flagging pressurized Economy of Hungary, trending downwards, is going to SUSTAIN, the over inflated prices still that dominate – the property market of Budapest, Hungary ?
Bit of “carnage” to come – sadly.
You will own nothing and be happy … welcome to the new world order … and many thought this was all about a little virus and now they are starting to cry that the economy is tanking and tank it will for that is what it was designed to do. 1% will own everything and if you keep sleeping you will own nothing and be enslaved forever.