Negotiation potential grows for buyers in the Hungarian real estate market
Significant changes have begun in the Hungarian real estate market in recent months. The increasing supply and simultaneously decreasing demand have increased the negotiation opportunities for buyers.
As a consequence, it is clear that sellers are being forced to drop prices. However, the question arises as to how much they would be willing to reduce. This issue was explored by origo.hu with the help of Balla Ingatlan (Hungarian real estate agency).
Which types of properties are sellers willing to negotiate on?
We have previously reported that the only properties not affected by the price fall in the Hungarian property market are the sustainable panel apartments in good condition. You can read our article on this topic HERE.
Origo.hu also confirms this point:
Currently, the greatest demand is mainly for panel apartments, but even among those, it is mostly for properties in good condition or that have been fully renovated.
However, the prices of other properties in worse condition have started to decrease.
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How much cheaper are properties currently?
For now, therefore, it is mainly the lower-quality apartments in need of renovation that can be found at better prices. As an example, origo.hu describes a panel apartment for sale in not such a good condition, which could be bought for HUF 42 million (EUR 105,800) in March 2022. At this time, the real estate market was at its peak. At the end of 2022, however, an apartment in the same condition in the same area was selling for HUF 38 million (EUR 95,724).
The psychological threshold is around HUF 40 million (around EUR 100,762) for panels, HUF 60-70 million (EUR 151,143-176,333) for larger brick apartments, and above HUF 100 million (EUR 251,905) for detached houses,
they write.
In the southern parts of Buda (districts XI and XXII), a two-room apartment typically costs HUF 50 million (EUR 125,952). In the same area, the average price of a detached house in district XXII is between HUF 70 and 80 million (EUR 176,333-201,524). In contrast, however, in district XI, detached houses are still selling for over HUF 100 million.
Lower prices to be expected
Although there is no significant price fall yet, more and more sellers are likely to recognise the need to reduce the price of their property. This tendency of price drops will, of course, continue to apply to properties that need to be renovated. Buyers these days seem to be more prepared to buy a new home. Also, they typically wait until they find the right property at the right price. While supply continues to expand, these buyers also seem to be more selective. Still, according to origo.hu, it will be months before sellers realise that their property will not sell at the former high price.
Read alsoMansion in Hungary for sale at a surprisingly low price
Source: origo.hu