GKI-MGYOSZ real estate market gauge exceeds nine-year peak

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A gauge of plans and prospects of real estate companies and households in the property market reached a 37-quarter peak in April, economic research institute GKI said yesterday, according to Hungarian news agency MTI.

The gauge, now prepared with the cooperation of business association MGYOSZ, has been climbing steadily since the beginning of 2013.

Although the number of households that definitely plan to buy or build a home fell by 4% from January to 23 of the 1,000 people polled in the representative survey, the number of those inclined to do so rose by 22% to 72, presumably in connection with the governmentʼs home subsidy purchase scheme, MTI reported.

Respondents expect resale home prices in the capital to increase 2.5% in the next twelve months compared to a 5.8% increase expected three months earlier. In the eastern part of the country, prices are seen rising an average 3.2%, slightly more than in January, while in western Hungary, prices are expected to rise 3.3%, slightly less than three months earlier, the news agency added, citing the survey findings.

About 38% of respondents said recently launched home purchase subsidies for households with children will have a significant positive impact on home construction, 43% see a slight improvement and just 21% expect the support to have no impact. These ratios were 36%, 43% and 21%, respectively, in January, so the assessment of the home purchase subsidy scheme improved slightly over three months. 

For the summary of the survey results click here.

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