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Property prices are skyrocketing at Lake Balaton
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Nothing says summertime bliss like sitting on the veranda of your waterfront beach house at Lake Balaton and watching the sunset with friends and family. If buying property at the Hungarian sea this summer is among your short-term plans, we have bad news for you. Due to the adverse economic forecasts and the current geopolitical climate, the real estate prices at Lake Balaton and other popular holiday destinations are not going to drop any time soon, although the rapid surge may slow after a couple of months. Real estate prices are record-high even in the once-affordable towns, a bit further away from the lake. Read on to learn about the whopping square metre prices at Lake Balaton.
Dramatic changes in purchasing trends
Based on the information of Pénzcentrum, the domestic real estate market, including beach properties, witnessed increased activity in the first quarter of the year despite the ongoing war in neighboring Ukraine. Customers are usually more interested in eyeing up properties when the spring-like weather finally hits the country. However, the pandemics have brought significant changes to the housing market, thus causing a shift in customer behaviour.
According to market experts, people no longer look for a property only for the summer season but they also consider purchasing one as a second home.Â
OTP Ingatlanpont (OTP Real Estate Centre) reported increased customer interest and transactions on the southern coast of Balaton while the region of Lake Velencei had moderate traffic in March. Nevertheless, prices continue to rise steadily. Lake Tisza did not witness a significant change in terms of purchasing trends. In 2021, the real estate market demonstrated a renewed strength all year round. Interestingly, customers were more inclined to purchase larger and more expensive properties during the spring and summer periods while cheaper and smaller properties were more in demand post-season. In comparison to last year’s figures, however, there is a 40-50% decrease in interest in the lakeside property market. It can be due to the general price surge that affects all markets as well as the rising loan interests.
Only the wealthy will remain at the lake?Â
Pénzcentrum also quizzed the real estate experts about the annual forecast. Fortunately, they gave a reassuring answer: demand will never cease at Lake Balaton since it is the largest lake in Central Europe, a top holiday destination for many nations. One should not forget either, that the region around the Hungarian sea boosts the most developed infrastructure and a myriad of service providers, hence, it has a prominent position in the real estate market.
It goes without saying though, that the worsening economic situation will take a toll on the market. On the other hand, property owners who own houses at the top premium locations around the lake have no reason to be concerned.
Tamás Katona, a consultant at OTP Ingatlanpont, highlighted that further price increases can be well expected since newly built house prices and constructions costs rise as well. Consequently, purchasing traffic is forecasted to slow down this year. Another expert added that demand is still the highest in two regions in the country: Budapest and Balaton. Interestingly, a premium Balaton property can occasionally cost even more.
How does the war affect the market?
The negative effect of the Russian-Ukraine war can be already felt in many sectors of the economy, and naturally, the summer housing market will not be spared either. Taking into consideration that the loan interest rates have been sharply increased as part of the central bank’s attempt to keep inflation at bay, we can expect a serious disruption in the marketplace. On the other hand,
it is too early to predict further events as the market always shows increased activity at the beginning of the year besides the summer period has not yet kicked in.
What is already seen though is that there is more interest among customers who have the purchasing power to pay for the property without taking out a loan while those who are in need of capital are more varied about making decisions. Due to the approaching global crisis, a drop in summer house sales can be well expected as these purchases are considered luxury needs in times of economic uncertainty.Â
Whats NOT – skyrocketing price wise in Hungary ///
We ain’t seen – NOTHING yet because its going to get Worse and bit hard – throughout Hungary.