detailed search
- sqm
simple search
April 19th, 2016

Fast times in the Hungarian real-estate market

Both developers and buyers have reacted swiftly to recent changes affected the real estate market in Hungary. Effects of changes in the property market were the main themes of the Valuation property conference organized annually by Portfolio and RICS Hungary since 2011.

Both developers and buyers decide fast

Tibor Földi, CEO of Cordia Magyarország Zrt. explained that price dynamics can depend on the availability of lot supply. Strong  investment demand in the downtown of Budapest can raise the prices even more. Gábor Kiss, Managing Director of Metrodom Kivitelező Kft. noted that the relationship between demand and supply has become more favourable. The developer thinks that property prices can locally reach the top in the coming years, followed by a perspective correction. It can be the consequence of the temporary nature of the reduced VAT (valid only until 2019) making both developers and investors decide quickly.


A dominant capital

Gábor Rutai, Chief Analyst of Duna House added that the Hungarian real estate market is dominated by the capital. In the countryside demand is increased by investors and people moving into bigger towns looking for jobs. Tibor Földi agrees that most developers are active only in Budapest, however, the south-eastern part of lake Balaton, Győr, Kecskemét, and Debrecen can also be interesting for developing companies dealing with large volume projects.

Upturn in the construction market


Property developers have reacted fast to the introduction of reduced VAT and the expansion of The CSOK Programme. András Csoma MRICS, Board Member, RICS, moderator of the session said that we are seeing the emergence of a property development boom which may not be handled by the whole market. Compared by the boom of 2000, the affordability of the apartments has been going a little bit better, which inspires optimism – added Áron Horváth, Manager of ELTINGA / Lakás Riport.

Gábor Tokodi, Deputy-CEO of FHB Bank reported that banks primarily consider housing projects with many apartments (mainly 20-50, but principally 50+). The expert thinks that the expansion of the CSOK housing benefit program caused a significant move on the Hungarian property market and it can also reduce the high rate of cash buyers.  The participants of the conference also agreed that the rise of the demand will provide opportunity for developers to increase real-estate prices.





Interested in buying a property in Budapest?

Interested in buying a property in Budapest?

Contact us to get a tailor made investment advice from the Budapest market specialist.


Send Enquiry

Subscribe to our mailing list

Tower Investment
Contact Us Now on Phone or via Form

H-1137 Budapest, Pozsonyi út 1.
Tel.: +36 1 808 9090

© 2019 Tower Investments | All rights reserved
Prices of apartments are indicative only. Pricing and availability should be confirmed with Tower International.


Searching for the Best Property Service?

Contact us today and let us guide you in the Budapest real estate market!

  • Trusted by 4000+ clients
  • More than 15 years of experience
  • Leading Property Experts for Foreigners

“I’ve managed to restaure and sell a flat in Budapest. Tower was the most professional and I was happy of my choice.”
- Maximilien

“They have very dedicated, thoughtful and professional staff”
- Hoáng

Excellent personal service, efficient and friendly. Highly recommended for buying real estate.”
- Ian