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Photo by Barry Talley on Unsplash

In Hungary, there has been a lot of interest in properties for sale in the first weeks of the year; however, the supply is not keeping pace yet. An expert reveals what can be expected in the real estate market for the upcoming period.

According to the latest analysis of Ingatlan.com, the portal’s traffic broke a record this week, with half a million visits a day on Tuesday and Wednesday, showing more than a 30% increase compared to the previous year. This positive trend can also be seen in the increase of inquiry calls connected to property sales in the first weeks of the year.

According to László Balogh, a senior economic expert at Ingatlan.com, after the “calm before the storm” that characterised the end of 2020,

“The demand side has very much revived at the beginning of this year, which is not surprising.”

According to the expert, many households could be expected to consider housing investments at the beginning of the year, mainly due to the new government subsidies. For the time being, potential customers are looking for information and checking out the supply. The expert also added that

the increase in demand might be reflected in actual sales in February-March.

As the Hungarian news portal Világgazdaság reports, this year will be different compared to previous ones as buyers will be able to browse among the offers in a more considered and favourable position. The housing subsidies that are now becoming available are more targeted, and families who buy flats for their own purposes will receive these discounts. In the previous years, foreign investors had a significant role in the real estate market; however, this year, they will be missing from the demand side.

For this reason, prices can be adjusted to the purchasing power of Hungarian households planning to actually move and buy a home.

Every year since 2017, more than 10,000 single-family homes have been licensed by the authorities, typically for the construction of family homes. In 2019, before the appearance of the coronavirus, more than 11,000 single-family homes were licensed. “According to the latest data, in the first eleven months of 2020, 8,452 houses received permits, which is a relatively high number considering the epidemic situation,” commented the expert.

In the housing market, whether we consider construction, or purchasing a used or a new home, loans will continue to play an important role, thanks to the new subsidies. Due to the start of the government’s housing renovation program in January and the subsidised loan available for modernisation from February, the amount of housing loans for renovation may also increase in the future. However, due to the economic uncertainty caused by the coronavirus epidemic, it is still difficult to make an accurate forecast of the turnover of the retail credit market, including housing loans or personal loans, which were among the most popular loans in previous years.

Budapest Hungary real estate
Read alsoThe cheapest, the smallest, the biggest – Highs and lows of Hungarian real estate in 2020

Source: vg.hu

1 comment
  1. Irrespective or not, if the housing subsidizes that are being offered, by the Hungarian Government, long overdue in there introduction to assist Hungarian Citizens to purchase property, have Factually had impact, awakening the sliding declining in value ,the broad landscape of the Property – Real Estate Market in Budapest, Hungary, is Highly Debatable.
    Curiosity in number principally would be a factual explanation of the interest claimed being observed in the Property – Real Estate Market, in Budapest, Hungary.
    The years 2018 through to March 2020 – we witnessed – driven by Foreign Investors named Chinese, Vietnamese and Germans – in order as written, the catalysts – who through there purchasing powers – totally distorted and placed the value of Housing, Flats and Apartments – into False levels of value, that “crushed” the citizens, especially the young first home buyers of Hungarian Citizens, from entering and purchasing, making a long term or life investment – that being Property.
    Foreign Property Investment in the time period mentioned, properties purchased for Rental Income purpose totally out numbered –
    OVERWHELMED – the purchase of properties – that the titled owners from whatever country of citizenship they came, purchased – to actually live in Budapest, Hungary.
    This distortion has played Havoc in the property markets in Budapest, Hungary.
    Through the wrongness permitting the dominance of the Chinese, Vietnamese and Germans in the Property – Real Estate Markets of Hungary, compounding the problems they effected in catapulting property values has been the novel coronavirus.
    The broad landscape of Property and Real Estate inclusive of new hotels and industrial warehouse storage facilities – the MARKETS – in all these sectors of the Property and Real Estate Market – still have substantial movement – in a downward trend, before it could be said FACTUALLY – we have bottomed out.
    The “zenith” of the cataclysmic effects, the on-going presence in Hungary, we have not witnessed, through this novel coronavirus, but what we have witnessed thus far – is a Tragedy.
    Inoculation – is not the end of the challenges we all face into the Future but perhaps it may be the end of the beginning – and the future of greater clearer bluer skies than what we all live at present.
    Remain curious of interest in the behaviour and trends of the Real Estate and Property Markets in Budapest, Hungary keeping those cheque books locked in a safe place but accessible to retrieve – when the time in the next 15 to 18 months is the RIGHT time – to play in or move into Property Investment.

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