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Hungary: Real estate market stands still

The property barometer index of the research institute Ecostat grew to 46% in Q2 from 45.6% in Q1. The raise can be considered stagnation, said director Pál Belyó.

The sales of studio flats dropped and the floor space of flats sold increased, and both tendencies are expected to prevail throughout 2008. Property investors expect a flagging interest in H2, especially with households, and they only trust in foreign investors.

Property sellers forecast a 5.5% growth in sales in H2. Property market players prognosticate inflation in the sector of 6.9% to 10.2% for 2008. Purchase prices might rise by 5.7% to 11%, rents are expected to see a 5.5% rise on average, say experts. The number of flats rented out is increasing, so is the duration of the rental period. In H1 central-Hungary saw the highest property prices, as well as the most diversified offers, said leading researcher Lenke Pólya. (Gazdasági Rádió)