Hungarian real estate company Otthon Centrum projects the price of new homes in Hungary will increase about 7% in 2008, level with the rate of inflation.
Nonetheless, it still sees prices of both new and resale homes doubling in ten years, analyst Dávid Valkó said at a press conference on Wednesday.
About 11,200 new homes will be completed in Budapest by year-end. Demand for resale homes is expected to fall 5%-10% during the year.
Prices for resale homes in brick buildings averaged Ft 269,000 per square meter in the first half of the year. The price for free-standing resale homes was Ft 197,000 per square meter.
The report noted that 10% of new home loans taken out in the first half were denominated in Japanese yen. (MTI – Econews)