Through the first half of the year, demand has grown by 10% in real-estate market compared to previous year’s statistics. The reason for this is that several people are completing their postponed will to buy a flat this year, and at the same time many of them use it as an investment, origo.hu reports.
The turnover of real-estate market in first half of 2014 has started growing after long lasting stagnation for many years. According to the Hungarian Central Statistical Office, in 2013 at this time of the year 42.650 real-estates changed owners, whilst this season there is a 10% increase in the number of purchases. “Based on the first six months it is quite early to speak about change of trends, however the increase in demand – although it might slow down- can last till the end of the year” – said Attila Déry, leading analyst of Otthon Centrum.
Current year can reach up to the number of 100.000 purchases
Origo.hu said, according to the real estate broker, in 2014 there will be an ovarall 10% increase in the number of purchases on the real-estate market compared to 2013 and the number might range approximately 97.000 transactions. Increase is however a very fragile process and is questionable whether the market is able to enter a constant growth path.
2-3 years yet to reach pre-crisis price levels
Although the customer positions are weakening, there is still 2-3 years neededto reach the price levels that had been present before the economic crisis occurred. For the stable rise of prices, the level of loaning must increase as well, but for this the bank credit portfolios must be cleared. Positive sign is if wetake into accountthe prices which were already stagnating in 2013 and even growing from first half of the year of 2013 to first half of the year of 2014, including the prices of real-estates of Budapest.
Selling houses is still not easy
Although it takes less time to sell second-hand brick- and panel-made flats, the selling time for houses has increased. The reason for that the growing trend of average time-duration for selling a house has not changed is that in first half of 2014 the growing demand applied more to Budapest and other larger cities on the countryside. At these locations, flats in the city center are the most popular ones as those can also beused as an investment.
Rental prices show huge variance
According to origo.hu, in Budapest the most popular flats were the ones offered between the rental price of 60.000 and 90.000 forints. Considering the rental prices of houses, most people were interested in oneswith the rents of between 140.000 and 180.000 forints. In the suburbs most real-estate were rented between the price of 90.000 and 120.000. In Western Hungary,the majority of flats rented were on average around the price of 40.000 forints.
based on article of origo.hu
translate by Adam Reszegi
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