Investors were less active on the real estate market in the second quarter of 2019 than a year before, with falling transaction numbers, according to data from real estate agency holding Duna House.
Demand in June fell as well. Even so, Duna House says that the governmentʼs family support measures may alleviate the situation in the third quarter, leading to growing interest on the real estate market.
At the same time, the company also notes that the attractiveness of the new Hungarian Government Securities Plus (MÁP Plusz) bonds is taking a significant number of investors away from the real estate market. While the amount of real estate bought for investment purposes only fell by a few percentage points, this meant a considerable decrease in June due to the more than 10,000 transactions conducted.
On the mortgage loan market, loans with a below five-year interest period have disappeared almost completely, thanks to a change in regulations. Demand for loans with a fixed interest period below ten years has also fallen. The average loan size remained unchanged in the countryside, but grew by 10% in Budapest.
The increase in loan size is justified by constantly growing real estate prices, with Duna Houseʼs price indices also showing a steep upward trend. In the provinces, prices are typically around HUF 300,000 per square meter, while prices in the capital can be as high as HUF 700,000/sqm, depending on the type and location of the building, the agency adds.