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Budapest Property Market Index inches down

The Budapest Property Market Index, a measure of supply and demand on the market as well as market players' plans and expectations compiled by economic think tank GKI and professional journal Ingatlan es Befektetés, fell to -29.2 points in January from -28.6 points in October, GKI head László Akar said on Wednesday.

The index was up from a historical low of -33.4 points in July 2009. The index peaked at -10 points in July 2008.

The office market sub-index improved from -40 points to -23 points in the past two quarters, while the home sub-index inched up from -50 points to -48 points.

Home prices in the capital fell 8% in 2009 and are expected to drop another 1%-3% in 2010. Outside of the capital, home prices fell 11% in 2009 and are seen dropping another 3%-5% in 2010.

GKI estimates 27,000 homes were built in Hungary in 2009 and about 20,000 will be built in 2010. (MTI-Econews)