Real estate market set to grow further this year

Sustainability

ingatlan.com

Property prices will continue to grow in Hungary this year, but at a slower pace, according to real estate site ingatlan.com. Meanwhile, the government has indicated that a preferential VAT rate for home construction is not likely to be adopted before summer this year.

Photo: ingatlan.com

According to a ranking compiled by ingatlan.com, the most expensive piece of real estate put on sale in Hungary last year was a castle on Andrássy út in Budapest, for HUF 5.6 billion, with a living area of 2,200 square meters and 18 bedrooms.

In all, the number of sale and purchase transactions in 2017 was over 150,000 and is expected to reach 160,000 this year, according to estimates of real estate agency Otthon Centrum, quoted by business news site vg.hu. The agency expects the rate of price increases to continue to slow in 2018. In Budapest, apartment prices are estimated to grow by 5-15%, and single family homes by anywhere between 1% and 20%. In the countryside, the increase is forecast to be 5-10%.

The completion of new residential buildings will reach a peak in 2018, and customer numbers are also expected to increase until the end of 2019, when VAT on new homes will return to its normal, higher rate, according to Otthon Centrum.

Minister for National Economy Mihály Varga told public television Tuesday that if the government decides that an extension of the preferential VAT rate on home construction is necessary, it will deal with the matter only in the second half of this year.

Home sales up 6% in December

Home sales in Hungary came to 9,787 in December, up 6.04% from the same month a year earlier, real estate broker Duna House said on Wednesday, based on estimates, as cited in a separate report by state news wire MTI.

In the fourth quarter of 2017, some 33,853 homes were sold in Hungary, compared to 30,715 in Q4 2016.

In 2017 as a whole, estimated home sales in Hungary amounted to 148,896, up 2.9% year-on-year.

At the same time, Duna House noted that there is a higher than normal degree of uncertainty concerning the number as there was not enough data available concerning sales of new homes.

Duna House said that earlier it estimated 144,674 homes were sold in Hungary in 2016, while the Central Statistical Office (KSH) put the number at 146,302.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt 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.