Residential property market picks up steam in May

Residential

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.

ADVERTISEMENT

Annual Inflation Hits 23-Year High in May Analysis

Annual Inflation Hits 23-Year High in May

Lawmakers postpone expanded data provision for tourism secto... Parliament

Lawmakers postpone expanded data provision for tourism secto...

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group Appointments

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group

Budapest targets tourists with public transport fare hikes City

Budapest targets tourists with public transport fare hikes

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.