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Ecostat property market index drops slightly in Q2

Ecostat's Real Estate Barometer, a measure of sentiment on Hungary's property market, measured 33.9% in Q2, down 0.8 percentage points from Q1, Ecostat said. The Ecostat Household index rose 0.3 percentage points to 35.1% in Q2, showing that people are expecting the market to stagnate rather than contract further, said Ecostat Director Pál Belyó. He added that time to sell new homes is rising, and the prices are becoming increasingly subject to bargaining.

The index of property sellers rose 6.55 percentage points to 40%. Demand contracted for large, well-located homes on the used-home market. Up until now, this was the only field not affected by the crisis. On the new home market, customers are still seeking luxury apartments. In a new development, prices fell 5% on the property market, meaning that developers are not planning new construction. Those surveyed by Ecostat expect a fall in prices in every segment of the property market, meaning that the VAT increase cannot be built into the prices of new homes. The number of new housing-construction projects fell, while the number of renovations rose. (MTI-Econews)