Residential property market picks up steam in May
Photo by Fabio Balbi/Shutterstock.com
After a relatively quiet April, activity on the Hungarian real estate market increased in May, according to estimates by Duna House.
The 12,519 transactions estimated for May show a 5% increase compared to April. On the other hand, this number is still 12% below the exceptionally strong sales in May last year.
Despite the rise in house prices in the first quarter and the steady rise in lending rates, solvent demand in the property market has not yet fallen significantly, Duna House says.
More than 63,000 properties have already changed hands this year, an average of more than 12,000 transactions per month. However, in an active market, tightening supply, and tighter credit conditions will increase the need for professional help from intermediaries on both the selling and buying sides, according to the company.
The mortgage market had another very strong month after record high volumes in April. According to Duna House estimates, HUF 140 billion in contracted housing mortgage loans were realized in May. This represents a 3% decrease compared to April when the National Bank of Hungary's (MNB) data showed that customers signed contracts for HUF 144.76 bln. However, the volume of loans in Hungary was 16% higher than in May last year.
In April and May, the credit market was mainly boosted by lending related to new construction.
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