Hungarian Property Market Experiences Unexpected Boom
Hungary’s Real Estate Sales Surge by 25% in March
Despite the recent challenges faced by the global economy, Hungary’s real estate market saw an unexpected surge in property sales numbers in March. According to Duna House, a Hungarian real estate agency, daily flat and house sales have increased by 25%. People in Hungary seem to be returning to investing in the real estate market, thanks to a decrease in property prices and various government allocations that are helping them to achieve their goals.
In Budapest, the average property price stood at HUF 50.7 million (EUR 136,000) in March, according to Világgazdaság. Although the first quarter of 2023 brought in 19,893 sales, which is the weakest quarter in the last ten years, experts are predicting a positive outlook for Hungary’s real estate market in the coming months.
Duna House forecasts an increase in transactions in Q2 in 2023 due to the arrival of lower prices on the market, which is not limited to nominal and real values. Buyers are also negotiating prices, making it an excellent opportunity to invest in Hungary’s real estate market.
In Budapest, people looking for investments would like to buy an average of 54 square metres and would pay an average of HUF 50.7 million (EUR 136,000). The 13th, 9th, and 11th districts in Budapest had the most significant offer of newly-built projects in Q1.
Although people seem to be interested in investing in real estate properties, bank data suggest that they are not looking to take out loans. The rate of such transactions fell by 67% compared to 2022 Q1.
Experts predict a positive change in Hungary’s real estate market in the coming months as more families accept the government’s housing subsidy for families, known as CSOK, which will help them achieve their housing goals. Additionally, people became financially aware due to high interest rates, which could encourage them to invest in the real estate market.
In conclusion, Hungary’s real estate market saw a sudden surge in sales numbers this year, and although the first quarter brought in the least number of sales, experts predict a positive outlook for the coming months. With the decrease in property prices and the government’s housing subsidy, investing in Hungary’s real estate market may be a beneficial option.
