Now is the time to buy property at Lake Balaton: favourable conditions await
The Balaton real estate market could close a turbulent year. There have been several significant changes in demand for properties on the Hungarian seaside. Not only domestic but also foreign buyers’ demands have changed. Now, based on a statement by Duna House, Portfolio, a Hungarian online business magazine, has summarised the trends and turns in the Balaton real estate market in 2022.
As we reported, there have been significant changes in the domestic property market in recent months. The decline in demand and the emergence of an oversupplied market are not unique to Budapest. According to a recent report, similar trends can be observed on Lake Balaton, Portfolio reports.
Significant changes in the property market
Károly Benedikt, Head of PR and Analysis at Duna House, said the following about the state of the market: “The Hungarian real estate market has had a hectic year, and this transformation has not left the Balaton holiday home market untouched. Changes in the economic environment, inflation and rising energy prices have transformed the demand market into a supply market. Sellers are still reluctant to lower prices, and more adventurous but serious buyers would bargain even before viewing the property.”
The decline in demand is not the only trend that is also prevailing on the Hungarian seas. Energy parameters have also come to the fore in the Balaton real estate market, Portfolio writes. Thus, those who decide to buy will take a closer look at the contents of the energy certificate. However, it is interesting that, in contrast to renewable energy systems, customers prioritise the condition of the insulation and the roof, in addition to the windows and doors of the buildings.
Less foreign investors at Balaton
The proportion of foreign investors is also decreasing. Those who would still like to invest in property near Lake Balaton prefer the inland areas, the smaller settlements of Somogy. There, they can buy a second home at a reasonable price, together with a suitable size of land for self-sufficient farming, rather than the luxury of the waterfront.
Among second home buyers, the proportion of loan borrowers is generally very low. However, the distribution has further decreased due to rising interest rates, with mainly home buyers using state subsidies (CSOK, Baby waiting allowance [Babaváró támogatás]) to take advantage of loan opportunities in the Lake Balaton area.
Source: Portfolio, DNH