ADVERTISEMENT

New home sales set to reach 20-25,000 in mid-term

Sustainability

pixabay

Hungaryʼs market for new homes could boom next year, with new home sales potentially reaching 20-25,000 by 2019, Dávid Valkó, chief analyst at OTP Mortgage Bank, said at a press conference yesterday, according to Hungarian news agency MTI.

Last year, 7,600 new homes were built in Hungary, and this year more than 10,000 could be completed, Valkó said. Including resale homes, sales could reach 150,000 this year and stabilize around an annual 170,000-190,000 in the mid-term, level with sales before the global economic crisis. 

In January-August, 6,800 homes in 210 blocks of flats were offered for sale in the capital, and investors have announced plans to build a further 7,500 homes in 40 projects.

In January-July, 2,800 new homes were sold in Budapest, several times the number sold in the years since the crisis. New home sales were also up in other major cities around the country. Sales could climb for 2-3 years and annual price growth could remain in the double digits, Valkó said.

Tibor Földi, CEO of residential property developer Cordia, said 40-50% of new homes are being bought as investments at present. However, about 80% of the 100,000 people who plan to buy homes in big cities in the coming five years will live in them, he added.

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.