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More homes were sold last year than in previous years. The favorite was the 11th district but the 9th, 8th and 13th district apartments were also expected to sale, penzcentrum.hu says.
Last year, more than about by 50% flats were sold in Budapest than in the year before – OTP Mortgage Bank’s analysis says. The Budapest New Flat Value Map, however, also notes that investors are only beginning to respond the boosting demand by launching new projects. Despite the small lag, OTP expects that the number of the sold flats will grow by a quarter this year. Updating the supply would also be urgent, because the transferred but unsold housing stock dropped from 3800 to 1100 in the capital in five years.
Enthusiasm experienced in the housing market reached the newly-built flats too. The evidence for this that after the minimal recovery in 2013, number of sold newly-built flats increased by roughly 50% last year. Since the crisis, more flats than the 2500 sold flats were sold only in 2011.
According to penzcentrum.hu, 11th district was the favorite with 470 sold flats; New Buda and the 9th, 8th and 13th district made up nearly two-thirds of the total sales. In addition, sales volumes exceeded one hundred in the 3rd, 7th and 14th districts too.
The traffic usually boosts due to the good investment opportunities in the real estate market, to which the growing attractiveness because of the handover of Metro 4 in the 11th district was added too – David Valko says senior real market analyst of OTP Mortgage Bank. It is predicted decline in house prices in the past 5-6 years will be stopped, and hope for the increase in value of return from rent – for new homes stably above average – encourages many people to buy flats. Nevertheless, the supply of new homes shrunk so much last years that there became a shortage of them, the launched projects enjoy a big demand.
If we look at that in a particular moment, those interested from how many new flats, which you can move immediately in, we see that this number peaked around 3800 in 2010. Since then, however, in a steady pace, it reduced to 1100 by the end January this year. Roughly 600 real estates under construction add across the capital. The stock of transferred but unsold properties is the biggest in the 13th district, 150 pieces; in addition, there are more than 100 properties ready for sale in the 2nd, 14th, 11th and 3rd districts. At the same time, just less than five pieces of flats are empty in the 22nd, 18th, 17th and 1st districts, penzcentrum.hu says.
To the rise of the demand, investors did not yet respond with launching a growing number of projects last year. In 2014 – roughly the same number than in the last year – the database pf OTP Mortgage Bank records 72 investments. Of these, only 2 exceeded the limit of 100 flats (one in the 7th and one in the 9th district). The “average project” is still small, only 12 flats.
based on the article of penzcentrum.hu
translated by BA