This is why 2022 will be a very exciting year for the Hungarian property market

The deadline of the different government real estate subventions end before the elections. As a result, more will try to use those grants and discount loans to buy something. Thus, the prices are expected to go up in the sector. Furthermore, the increasing inflation rate can also attract the attention of investors to put their money into real estate. These two trends can easily result in skyrocketing real estate prices again.

Real estate investors return

According to azenpenzem.hu, 2021 marked a trend turn in the Hungarian real estate market. That is because more people buy real estate for investment reasons than for living in them. 

Based on data from Duna House (DH), coronavirus reduced the profit of property rental. However, this has changed now.

Hungarians have no chance to preserve the value of their money currently because of inflation. Bank and state bond interest rates did not follow the growing inflation. Therefore, people tend to invest in real estate. Data shows that

they now search for houses and flats in Budapest’s downtown and around Lake Balaton.

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According to an analysis of OTP Ingatlanpont, this year, investors will try to buy real estate in cheaper regions. For example, near those towns or villages, which have recently become the destinations of the increasing inland tourism. These include cheap waterside places, as well. Based on the analysis, the development speed of the Hungarian and global economy, the inflation and the growing net incomes will affect the price increase. The coming elections can be another factor to consider.

Housing boom expected everywhere

Ingatlan.com, another Hungarian real estate purchase website, said they also expect growth in prices this year. They said that the first half of the year would show a steeper price rise than the second half.

• Read also: Rent prices have been climbing all across Hungary for the past 10 months

Government measures affect the real estate process significantly. However, some of these will end this year. For example, the deadline for the baby support loans is December. Meanwhile, July is the deadline of the so-called Home Purchase Subsidy Scheme for Families (CSOK) in the villages. Families can apply for the Home Renovation Subsidy until December. But the first round of the National Bank’s Green Home Program will end in April.

Moreover, as we reported HERE, the VAT rate would only be 5 per cent for those buildings that get a building permit before December. That can result in a boom in the building site market because the number of free sites falls. 

 

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Source: azenpenzem.hu, DNH