Property prices to rise at rate of wage growth

Analysis

This year, the prices on the Hungarian real estate market are expected to rise proportionally to the extent of wage growth, according to Zoltán Gadanecz, founder and owner GDN Real Estate Network.

Zoltán Gadanecz

The expert says that 2020 will bring no outstanding price increases or decreases. He says that the value of homes with good characteristics will keep growing, but one may be able to find bargain deals in case of properties which have a less favorable location or layout.

"One could even find 15% off deals in case of houses and apartments with characteristics which are not exactly great," Gadanecz says. "Such places include attic apartments, where the fear of leaks is higher, and ground floor ones, easier to break into. In the past few years, customers were glad to be able to find properties satisfying their basic requirements, and they let go of their more delicate demands. This trend now seems to be reversing and a balance is being established. Thatʼs why there are bargains on purchase prices."

He argues that if one wants to turn a property into money, there is no point in sticking to the price for too long. The expert adds that prices might rise in certain countryside towns, due to the delayed appearance of "investment appetite". Such places include Kaposvár and Szeged.

"A minimal rise in prices is still registered in these places, and it will disappear later than in the case of Budapest for example. The driving force of semi-detached house and condominium constructions will last a bit longer, as it appeared later," Gadanecz argues.

He also said that as Hungary has become a popular place for foreigners, which means that the customer base is becoming increasingly diverse. An increasing number of French, German, English, Spanish and Irish customers are appearing, but they are still far away from becoming a majority.

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