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.