We are only at the beginning of the economic and energy crisis, but it is already affecting the property market in a strange way. Until now, property has been a relatively predictable investment, but now even the most reputable experts cannot say for sure.
According to ingatlan.com, Hungary’s leading real estate advertising website, more than 37,000 apartments and houses for sale were advertised by owners and agents in September, the same as in 2021, but 4 percent more than last month. Expert László Balogh wrote that not since 2015 have so many houses been advertised for sale as this year. This could be because many people are still trying to sell their higher energy consumption and larger floor area houses at a good price, and could be a harbinger of a wave of house sales that could peak from the winter months.
According to Balogh, the fall in demand as supply expands could slow down housing market appreciation, especially for single-family houses in need of renovation. He says the question is how many of the owners who sell their houses will enter the housing market as buyers and how much extra demand will be generated for them. In fact, people moving from houses to flats may support the price of the flats for sale, at least for a while.
The Hungarian premium real estate market is changing: the rate of foreign investors in Budapest decreases, but they are still very active around Lake Balaton. Here is the analysis of the Duna House, one of the biggest Hungarian real estate agencies, details HERE.