Home ownership becoming increasingly difficult
Photo by Fabio Balbi/Shutterstock.com
Real estate prices in the capital have more than doubled in the past five years, and the National Bank of Hungary recently pointed out that, despite falling interest rates, it is becoming increasingly difficult to obtain real estate loans.
Photo by Fabio Balbi/Shutterstock.com
According to a study from economic think tank GKI, in order to purchase an average flat in the capital with a mortgage, a buyer has to put in HUF 7 million of their own funds, while in 2014 HUF 2 million was enough. Today, 33 months worth of salary (or 42% more) would be needed to purchase a used home than in 2010. And it takes 26 months more to buy new homes.
Although the availability of home purchases has declined nationwide in 2019, in Budapest this deterioration is particularly significant, with an average Budapest household unable to cover a purchase with a typical loan.
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