Experts predict rising real estate prices in Hungary amid mortgage changes, government disagrees

The price caps in the programme for the 3 percent fixed rate Home Start credit for first-time home buyers will prevent real estate prices from rising, the parliamentary state secretary at the Prime Minister’s Office said on Sunday.

Real estate prices

Miklós Panyi said on Facebook regarding the fixed 3 percent loan that many left-wing commentators and opposition party leaders were warning that this would increase real estate prices by as much as 20-40 percent. Panyi countered that there are over 100,000 properties for sale in Hungary that qualify for the programme, in rural areas, in large cities, and in Budapest.

In addition, many thousands of properties will enter the real estate market that have not been offered for sale until now because there were no buyers, he said. Panyi also noted that over 10,000 home developments targeting first-time buyers will start in Budapest in the autumn, significantly expanding supply, and that eligible properties in the scheme have a price limit of 100 million forints for apartments and 150 million forints for houses.