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Fewer home purchases made for investment purposes in capital

The share of homes bought for investment purposes in Budapest has fallen to 28-30% from 40-45% at the start of the year, state news wire MTI reports, citing an analysis by real estate broker Duna House.

A projected appreciation in real assets could boost investor activity on the capitalʼs home market late this year and early next year, in spite of the contracting rental market due to the impact of the pandemic on tourism, Duna House said.

At present, most investors are buying average-sized homes in Budapest for HUF 35 million-45 million, it added.

Duna House noted that first-time homebuyers in the capital now account for 26% of transactions, spending, on average, HUF 29 mln.

Demand among first-time homebuyers is supported by the governmentʼs Home Purchase Subsidy Scheme for Families (CSOK), prenatal baby support credit, and VAT measures.