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Hungary: Prices of new homes could increase 10%

Virtually, only the companies with a considerable capital, a long history and serious professional background can survive on the home market nowadays, said Ferenc Aradi, deputy CEO of home development company Autóker Holding Zrt, when describing a prevailing tendency in the sector in an interview to the daily Napi Gazdaság.

For one-project companies it is more difficult, e.g., to cope with the prolonged sale period, he added. Hungary witnesses a shrinking market and, consequently, a tougher competition. Aradi forecast a 6% to 10% price hike on the new-built home market, as he did one year ago. Except the outskirts, there is no acceptable flat cheaper than Ft 350,000 to Ft 400,000 ($1940-2220) per square meter in Budapest, he said. However, Poland, the Czech Republic and Austria can boast of even higher prices, but it will take Hungary no more than 4-5 years to catch up, so it is still worth buying a flat here. At the same time, the demand for luxury flats has dropped since the wealth accumulation revisions gained momentum. (Napi Gazdaság)