Fewer home purchases made for investment purposes in capital
The share of homes bought for investment purposes in Budapest has fallen to 28-30% from 40-45% at the start of the year, state news wire MTI reports, citing an analysis by real estate broker Duna House.
A projected appreciation in real assets could boost investor activity on the capitalʼs home market late this year and early next year, in spite of the contracting rental market due to the impact of the pandemic on tourism, Duna House said.
At present, most investors are buying average-sized homes in Budapest for HUF 35 million-45 million, it added.
Duna House noted that first-time homebuyers in the capital now account for 26% of transactions, spending, on average, HUF 29 mln.
Demand among first-time homebuyers is supported by the governmentʼs Home Purchase Subsidy Scheme for Families (CSOK), prenatal baby support credit, and VAT measures.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.