The real estate market in Hungary has ground to a 10-year low
The Hungarian real estate market has seen its weakest first quarter in 2023 in 10 years. The high prices and interest rates as well as the skyrocketing inflation mean that neither buyers nor sellers are willing to make compromises.
The Hungarian real estate market has not seen this low demand and number of interactions in the last 10 years. Index.hu reached out to real estate experts to get a better idea of what could people expect in the near future. According to Ákos Balla, owner of Balla real estate, in some cases, demand has fallen by more than 50 percent for certain types of property. This was no exception for well-located properties.
Otthon Centrum has also spotted trend. According to their data, sales of both used and new types of properties have been halved in the first three months of 2022. The interest rates and high inflation creates a standstill in the housing market. “Everyone is in the wait-and-watch mode: buyers are hoping for better loan structure and prices, and sellers do not feel the need to rush to sell their property at a lower price” – an expert of Otthon Centrum told index.hu. As we have previously written, the stagnating real estate market is driving the prices up in the rental market, and the experts at Otthon Centrum believe that this trend is set to continue.
Lack of new homes
The fact that fewer people are taking out loans is most evident in the new home market. As the prices of new homes reached their peak, the lowered demand slowed down house-building projects as well, therefore the supply lowered at the same rate as demand.
“Investors need to cut prices, and those who do so can expect buyers. Those who fail to do so will see their projects slow down, and as a result, new ones will either not start or start late” – said Ákos Balla, who mentioned that despite the stagnation, the housing market won’t collapse due to the convergence of supply and demand.
Read also: Time to haggle: the reasons why you can save big on a home purchase in Hungary
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2 Comments
Flat Line – not a Good Sign, but not SURPRISED.
History tells us, that a pro-longed flat line in the Share Market, the historical trend is DOWNWARDS.
Hungary, with its Humongous Financial & Economic – the major componentry of its Economy, mintaining a worsening downward TREND, the property real estate market, will continue to be SOFT, pushing prices lower.
Foreign Investors have all but dried up, through on-going growing signs of worsening darker times Politically and Financially/Economically in Hungary.
There is NO confidence of Hungary’s short, medium and long term FUTURE.
Hungary – is in a DESTABLIZATION process – that BLAME is of its Prime Minister – Victor Orban and his Government.
Orban – not just in-side Hungary, or the European Union or NATO, but the United Kingdom & Ireland and the United States of America and ALL countries Globally that are Governed under DEMOCRACY – have CLOSED ranks against Orban and his Government.
Darker days are ahead, until such time there is MASSIVE Leadership upheaval in Hungary, that is through Hungarians REALIZING – that there only FUTURE is as a DEMOCRACY.
If hungary real estate fails then WEST/EU real estate will be 10x worse.
hungary is the last free country in Europe and peopel ar eleaving paris, london and other third world shitholes and are moving towards Est – freedom is dead in EU.
Budaest is already as expensive as pRague and in 10 years will be mor eexpensive than londin or paris..
hopefully we will have a correction so I can buy