Home purchase support could boost sales by 10,000

Residential

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Governmental support for home purchasing and home renovations could push the number of home sales to 140,000 in 2021 from around 130,000 in 2020, OTP Ingatlanpont lead analyst Dávid Valkó said at an online press briefing this week, according to profitline.hu.

Valkó said measures like the temporary reduction in the home construction VAT rate to 5% could give a boost to the new home market, as several developers had already announced new housing projects at the end of last year.

New home prices could fall slightly as a result, but as demand increases prices could rise back by the end of 2021 to where they were at the start of 2020, he added. The analysts said home renovation subsidies could prove to be the most impactful as, from the up to HUF 3 million on offer, a roof or a heating system could be completely replaced at a residential property, making resale homes more popular.

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