ADVERTISEMENT

Real estate market keeps changing in fall - DH Barometer

Sustainability

The ratio of those who buy homes with an investment purpose is on the decline, while the time needed to sell a property is increasing, according to the latest Duna House Barometer, which surveys the fall real estate market trends in Hungary.

The composition of buyers is changing quickly, Duna House says.

In Budapest, only 40% bought real estate with investment purposes in October, which represents a five-six percentage point decrease compared to previous months. In the countryside, the trend is even more pronounced, with investors making up only 22% of buyers, down eight percentage points in recent months.

The ratio of first-time buyers did not change, Duna House says, but notably more people moved into larger homes in Budapest compared to last year. 

Changes are well illustrated by the fact that the time required for sale in Budapest has significantly increased for all types of real estate. In the case of brick apartments, more than 3 months were needed to conclude a sale on average. In case of panel flats (old, communist-era concrete blocks), the indicator is close to 80 days on both sides of the Danube.

Prices continue to rise steadily across the country, with the largest year-on-year increase reported in the case of brick homes in the eastern part of the country. The rise in prices carries on in Budapest too, at an average rate of 23%, but location remains a determining factor in the rate of increase.

Duna House says that due to rising values, many people overestimate the value of their real estate, which decreases initial demand. The lower demand then usually leads to the owner lowering the price of his property, or declaring it negotiable.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

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

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.