Who Buys the New Apartments in Pest?

Foreigners are more likely to buy smaller, while Hungarians are usually buying the more spacious new apartments, according to the latest customer research of hungarian leading residential unit developer company. These phenomena can be explained by the fact, that 80 percent of those foreigners who bought a new apartment in Budapest purchased them for investment purposes and buying smaller apartments with one or two rooms, which are ideal investments.

Interestingly, among Hungarian investors the two-room apartments are more popular than the studio, while among foreign investors, this picture is more balanced. In line with their investment purposes, foreign investors are attracted to the projects in the city centre, in the VI. and VII districts, and the particularly popular area of Corvin Sétány. 

Local buyers have bought nearly 40 percent of the apartments sold for investment purposes. In the case of the project located at the city center, this number is nearly 60 percent, while with suburban investments, the number of investors is third this size.

96 percent of investment buyers are planning to rent out their properties long-term, among them the ratio of those who commission a professional property management company with the full management of apartment (furnishing, lease, administration) is a surprisingly high 70 percent.

Among home buyers, the intent to live is more dominant, and they usually choose more spacious apartments for themselves: nearly 80 percent of those answering the survey bought a two- or three room apartment. Foreigners bought more than two apartments each, which in the case of Hungarian buyers the average is at 1,3 – all of which shows that foreigners usually buy with the intent to invest, while Hungarians purchase new apartments for living purposes.

The almost constantly rising average prices don’t seem to curb the interest in buying. Third of the Hungarian apartment owners plans to buy further apartments, 42 percent of them are expecting to invest, while 26 percent of them are planning to buy for themselves. Those who are planning to buy another apartment, mostly want to buy in the districts of XI., VIII., XIII., while the fringe districts far from the city centre do not attract them at all.

Among the buyers there is a similar one-third, one-third ratio of employees, entrepreneurs and senior managers. It is mostly the entrepreneurs who are investing in apartments, who usually supplement their income from other – non-real-estate investment business with renting out. Nearly the tenth of the Hungarian buyers, on the other hand are pensioners, third of who buys apartments for investment purposes.

Based on the results of the survey, the strongest sense of local patriotism is characteristic of the Zugló and South-Buda areas. 42 percent of the buyers of Thermal Zugló had lived in the XIV. district, a further 10 percent lived in the neighbouring XVI. district. In the case of projects at Madárhegy and Sasad, 45 percent of buyers come from the XI. or XII. districts. However such “faithfulness” to one’s district is uncharacteristic among buyers in the city centre.

Despite the favourable credit constructions there wasn’t a mass of buyers who bought with credit, as 80 percent of those in the survey were buying with cash. Two-thirds of those who are planning to buy further apartments do not plan to buy on loan.

Similarly, only a small number of buyers used the benefit offered by CSOK. Less than ten percent of those answering the survey is taking out the CSOK for their current purchase and only 5 percent of those planning on buying a new apartment intend to use this opportunity.

The bad experiences of the financial crisis are still vivid in buyers minds, so it is particularly important to choose a trustworthy developer. This finding is supported by the results of the research, as the primary aspect of purchases was, apart from the location, the brand name, trustworthiness and crisis resistance of the developing company. In half of the sold apartments, this influenced the decision.

Besides all these, in 16 percent of sales, the opinion of friends and acquaintances was a deciding factor, before the aspects of equipment, price and functional arrangement.

Source: tozsdeforum.hu

http://www.tozsdeforum.hu/uzlet/gazdasag/kinek-kell-uj-lakas-pesten-82605.html