OTP expects clients to request HUF 50 bln in home development loans this year
OTP Bank in the last two and a half months reviewed 4,500 financing applications for home construction for investment purposes and judging by this the bank expects clients will require HUF 40-50 billion in credit for property developments this year, OTPʼs Vice-CEO László Wolf said yesterday.
OTP analysts see demand for new housing growing as last year 4,100 homes were sold in Budapest, several times the average sales figure of previous years, said Wolf.
With the government revamping its home purchase subsidy program for families and reducing the VAT rate for new home construction, home market supply and demand could pick up in the second half of 2017, creating an attractive investment opportunity in property development for companies, he added.
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.