Renovated housing prices might get 10% higher

The demand for new and renewed houses with larger spaces has increased in one year. This tendency is related to CSOK (discount for family homes) program and the campaign related to housing development enterprises, as Index.hu reported.

According to a recent survey published by Otthontérkép, the demand for houses with larger than 75 square meters has greatly increased between 2016 and 2017. The popularity of estates above 130 meters has doubled in a year. Most of the customers buy houses for accommodation and not as an investment, as the latter one would require smaller housings.

Newly constructed and renovated estates have been the most popular in the past 12 months.

The demand for new housings increased by almost 4 percent.

Fully new houses are mostly too expensive, so many customers turn to novel and recently renewed estates. At this rate, this category might expect a 5-10 percent of price increase in the next couple of years. Otthontérkép’s chief analyst Nándor Mester highlighted that, if the prices of renewed and new estates reach a certain level, a huge number of customers might choose housings that require renovation.

While 30 percent of housing seekers in 2016 intended to buy estates between 22,500 and 40,000 euros, this rate decreased to 22 percent by 2017. However, the demand for estates from the 40,000-65,000-euro and the 65,000-113,000-euro category increased by 2 and 5 percent, respectively. A similar increase occurred among estates between 113,000 and 190,000 euros.

CSOK and the favorable credit environment might be the key here as well.

The past 12 months witnessed the increase of demand in Budapest’s outskirts and the agglomeration. More and more people want to move to District III, XV, XX, X, XVII, XVIII, XXI, XIX and XXIII. The place of the greatest increase in demand is District IV, as this area doubled its demand in one year from 3 percent to 6.

This popularity can mostly be thanked to the fact that the prices are still relatively low in these parts of the capital. The other decisive factor is that the highly demanded larger estates can be found in the outskirts in great numbers.

Ce: bm

Source: Index.hu