Real estate market activity strong in May
Photo by Fabio Balbi / Shutterstock.com
Estimates by real estate broker Duna House show the strongest May real estate market activity in years, with a 5% increase in sales compared to 2019 and a nearly 70% increase compared to last year's low point caused by the first wave of COVID.
The company's experts expect the property market to close the second quarter with a total of 38,000-40,000 transactions.
The real estate brokerage's estimate of 14,198 sales in May and the Demand Index of 89 points indicate an active real estate market. This is supported by the mortgage market, which is estimated to have reached another record volume of over HUF 100 billion, with new loan products related to home creation subsidies also playing a role in the growth.
The Budapest metropolitan area remains one of the most active segments of the housing market. Looking at monthly data for the location, more than a quarter (26%) of sales have been above HUF 50 million and almost half (47%) are in the over HUF 35 million category. The statistics on the price per square meter also point to an increase in price, with 19% of transactions now above HUF 600,000 per square meter, up from 14% the previous month. In national terms, Pest county has the highest demand for properties to be renovated or in poorer but still habitable condition. These were the preferred choice of 36% of buyers, probably due to the availability of affordable properties in this region that can be modernized with a home renovation program.
Investment, buying a first home, and moving to a larger home remain the top three motivations for buying a home. However, the proportions of preferences have changed - not only compared to the same period last year but also compared to April this year. While investors in Budapest represented 41% of the market a month ago, their share has now fallen and first-time homebuyers are in the majority (33%). In contrast, in May, the number of properties bought for investment purposes increased significantly in rural areas (by 10 percentage points to 33%), taking the lead over the reasons for buying a larger property.
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