High Prices, Interest Rates Stifle Construction Demand
The decline in the housing construction market intensified in the third quarter, Gábor Kiss, vice-president of the Real Estate Developers' Round Association (IFK), managing director of Metrodom Építő and Metrodom Kivitelező Kft., told business daily Világgazdaság.
According to Kiss, high prices and high loan interest rates together have stifled demand.
The negative indicators from the first half of the year are reflected in the aggregated statistics of the first nine months, according to which 21% fewer residential properties were completed and 43% fewer are planned to be built.
According to market players, the big question is whether this is the bottom of the descent and the rise begins, or whether demand and supply are hibernating at a low level.
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