2022 marked the nadir of Hungary’s property market, experts agree. However, 72 percent expect slow but gradual increase in 2023. Based on a survey of Duna House, they believe the deciding factors in that process will be the change in interest rates, inflation, and the international political and economic situation. February transactions show a 7 percent rise, showing that the market is becoming revitalised.
According to Pénzcentrum, last year was the time of significant changes in the international and Hungarian property market. That is because of the soaring inflation, the high interest rates, and the uncertainties caused by the ongoing war in Ukraine. As a result, people started to search for rent instead of buying property in such incalculable environment. Therefore, supply grew while demand decreased, so prices fell.
Duna House is present in every region in Hungary. Therefore, they have data on the latest trends from almost everywhere, Károly Benedikt, the PR and analysis leader of the Hungarian real estate agency, cleared. Thus, they created a questionnaire which was filled by a lot of real estate agents. 72 percent of them remained hopeful about 2023. They calculate a slow expansion for this year and acknowledged that the end of 2022 was the nadir.
According to them, the most severe contributing factor to the contraction of the market segment is high inflation (74 percent) and expensive loans (71 percent). 43 percent of the real estate agents added the uncertain international economic and political environment. If those factors show positive signs, the property market will start booming again in Hungary.
Interestingly, Hungarians do not buy property because of the high rental prices and the low number of newly-built apartments. Real estate agents do not expect more people to buy real estate by using loans. Instead, they calculate a 10 percent decrease in that respect.
They do not think buyers should wait for the transactions. Only 6 percent expect a rise in property prices concerning second-hand apartments. In the case of the newly-built ones, however, 37 percent of them believe prices will continue to go up, while 43 percent calculate stagnation. Before, we wrote that the price of small apartments in a good location in Budapest or other municipals would continue to stagnate or even rise.
Thus, provided you plan to buy property in Hungary in such “priority” locations, you should not wait. That market segment shows signs of expansion again, so you will probably not do better business later than now.