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May 25th, 2016

Hungarian property prices set to rise further as demand outstrips supply

Due to governmental measures real estate market is booming in Hungary. Surveyors and property websites have reported a shortage of properties for sale which is driving up prices.

 

 

 

 

 

 

 

 

These are the most popular homes

·         Pre-owned and renovated homes are still the most popular types of property purchased as in 2015.; 44 % of the total search of potential customers per year.

·         New homes:  have risen in popularity. In December due to the news about the extension of the Government Support Family Benefit (CSOK) demand for new homes jumped by 7 %. In April it also grew by 4 % due to further specifications of CSOK- eligibility.

·         Medium grade homes or homes to be renovated: demand has also grown by 4-6%.

 

House prices – Home types

Cost of buying a property has seen the biggest rise of all housing types - compared to data from September 2015.

·         The price of new homes rose by 7000 HUF in the first two months of the year, which is projected to grow although more slowly than previously.

 

·         The price of good quality pre-owned homes has dropped resulting from the rise in demand for new homes; however, after the consolidation of the Government Support Family Benefit (CSOK), it returned to the previous rate or has become even more expensive.

 

·         Plot price has also increased; the news about the CSOK caused 5 % growth in demand, which has influenced prices as well: in April 1 sq.m of plot became 7000 HUF more expensive.

 

How high can property prices go?

Current demand and supply projections indicate increased demand for homes, especially for new homes, which has been pushing developers to come up with more and more projects. The principle of supply and demand fundamental to economics must apply here also. If there is an abundant supply, prices need to stop growing. When supply reaches demand, we can expect property price decrease unless other economic market factors intervene to change the status quo in the Hungarian property market.

 

(Source:  http://www.tozsdeforum.hu/szemelyes-penzugyek/napi-penzugyek/egyre-nagyobb-a-mozgolodas-az-ingatlanpaicon-68161.html)

 

Related articles:

 

3 Day Property Expo Sees 11,000 Visitors in Budapest

Demand for new apartments spikes in Hungary

Fast times in the Hungarian real-estate market

 

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