Hungarians target more expensive homes, says research
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Within one year, the demand for new and renovated homes has significantly grown in Hungary. Cheap credit and state subsidies are fueling the demand, but this can change, according to recent research released by real estate database Otthontérkép.
According to Otthontérkép, searches for homes larger than 75 square meters have grown between 2016 and 2017. The overwhelming majority of the searches targeted new and renovated homes, or those in good condition.
Otthontérkép analyst Nándor Magyar told online news portal index.hu that new flats are still too expensive for most potential buyers, which is why they are targeting renovated homes or those in good condition. Credit is cheap now, but if demand for such homes continues to grow, it will lead to a further 5-10% price increase, he added.
Between 2016 and 2017, not only the size, but also the price of homes searched increased. One year ago, searches carried out for flats priced in the HUF 7-12 million range accounted for 30% of the total, but this year only 22% of searches have targeted this category. At the same time, respective 2% and 5% increases in searches have been observed for price tags in the HUF 12-20 mln and HUF 20-35 mln ranges.
The growth is attributed to state subsidies available under the Home Purchase Subsidy Scheme for Families (CSOK), as well as cheap home loans.
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