Looking for a good place of investment? – Real estate prices started to decrease in Budapest
Real estate prices have already started to decrease at the end of last year, and because of the coronavirus epidemic, demand is falling quickly not only for new but also for second-hand flats. This means that the Budapest real estate market, which had been skyrocketing in the past few years, reached a turning point.
According to Ingatlan.com and the Hungarian Central Statistical Office, there is a turn in the trends of the real estate market, Index reported.
- Decreasing rental prices and growing supply in the Hungarian real estate market
- Hungarian real estate business -Settlements of the Budapest agglomeration thriving
- Hungarian real estate market turned upside down! – Hotel rooms offered for long-term rentals
Ingatlan.com does not have data on the number of transactions in 2020 as of yet, but it will surely be lower than it was in 2018 or 2019. László Balogh from Ingatlan.com added that the sellers do not want to reduce their prices even though demand was falling already at the end of 2019 when the coronavirus epidemic has not shown up yet. Therefore, it will probably be inevitable to
lower the prices, particularly because the financial state of many potential purchasers will be much worse.
In 2014, the real estate boom of Budapest started in the inner districts because of the increasing demand of those who wanted to buy flats for investment purposes since the growing tourism created a need for short-term rentals and Airbnb. Moreover, the financial state of locals got better, so long-term rentals were also very popular then.
However, there are almost no tourists now, and many people lost their jobs in the last few months, because of which demand for flats started to decrease mostly in Budapest. Index says that these factors
will not affect real estate prices in towns in the countryside
because mostly workers and students rented flats long-term there, and they will remain on the market even after the epidemic and the economic crisis. This means that the price difference between flats in Budapest and countryside towns will diminish.
Mr Balogh said that there was a turn in trends in the Hungarian capital because, until the end of 2019, purchasers competed with each other for a good offer, but from now on, sellers will have to compete for potential buyers.
Source: index.hu
3 Comments
Most Hungarian sellers ask unrealistic prices. That will become even more apparent very soon as the global economy and Hungarian economies collapse due to a likely severe recession or even depression if the Covid 19 crisis doesn’t end soon.
Hungarian estate agents do nothing to help clients sell property when they don’t return emails of prospective buyers and don’t answer their telephones. I was recently in the market for a property in North West Hungary and never could get a response from an agent that advertised to speak English. When an agent gets any activity the need to respond ASAP even if a property is no longer available. I have experienced this more than once and a Hungarian friend stated that it is not at all unusual for estate agents to not respond even when Hungarians attempt contact . WHAT IS WRONG WITH these agents? Do they not teach customer service skills help make sales?
The prize is still way to high not just in budapest, but in place like Gyor, Sopron and many other place in the border with Austria
When you can get a House with 1000m2 land in Australia Perth for 100k AU or even less in the country. It is hard to see why more Hungarians don’t make a move with the expensive cost of the country really. 200k AU for a apartment? No room to cook let alone kids. Come to West Australia soon as you can is all I can say. All way’s go back.