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Property prices and rents may fall in Hungary due to expensive gas and energy
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The Hungarian government’s new utility price regulations may decrease real estate prices in downtown Budapest and other big cities. As we reported before, the government commissioner said last week that private individuals in Hungary would be charged below the actual market prices for their gas and electricity consumption even if it exceeded the average level under which a price cap was applied. However, that new price will still be multiple times the old one. That might have a considerable effect on the Hungarian real estate market.
Not everybody will be able to buy gas and electricity at the capped prices
According to telex.hu, the international energy crisis and the government’s latest decisions regarding the utility price caps in Hungary will have a considerable effect on the energy consumption of households and real estate prices. The changes will probably affect the offices, hotels, and surgeries operating in apartment blocks.
If such buildings have only one gas meter, their condominium managers must report the number of apartments and spaces occupied by businesses by 15 August to receive the utility price cap. That is important because there are a lot of offices, surgeries, Airbnb hotels and firms downtown. Provided they do not receive the electricity and gas at the capped price next year, real estate prices will largely chance in the big cities.
László Balogh, an expert from the Hungarian real estate searching website, ingatlan.com, said it would likely raise questions at the owners’ general meeting when discussing which apartments get and which do not get the reduced price. If the authorities find out that a consumer received the gas or electricity improperly, they might pay 1.5 times the market price as a fine.