The ratio of those who buy homes with an investment purpose is on the decline, while the time needed to sell a property is increasing, according to the latest Duna House Barometer, which surveys the fall real estate market trends in Hungary.
The composition of buyers is changing quickly, Duna House says.
In Budapest, only 40% bought real estate with investment purposes in October, which represents a five-six percentage point decrease compared to previous months. In the countryside, the trend is even more pronounced, with investors making up only 22% of buyers, down eight percentage points in recent months.
The ratio of first-time buyers did not change, Duna House says, but notably more people moved into larger homes in Budapest compared to last year.
Changes are well illustrated by the fact that the time required for sale in Budapest has significantly increased for all types of real estate. In the case of brick apartments, more than 3 months were needed to conclude a sale on average. In case of panel flats (old, communist-era concrete blocks), the indicator is close to 80 days on both sides of the Danube.
Prices continue to rise steadily across the country, with the largest year-on-year increase reported in the case of brick homes in the eastern part of the country. The rise in prices carries on in Budapest too, at an average rate of 23%, but location remains a determining factor in the rate of increase.
Duna House says that due to rising values, many people overestimate the value of their real estate, which decreases initial demand. The lower demand then usually leads to the owner lowering the price of his property, or declaring it negotiable.