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.