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Home purchase subsidy boosts real estate market in villages

The extension of the Home Purchase Subsidy Scheme for Families to some Hungarian villages (“Falusi CSOK”) has boosted the domestic real estate market, especially in those settlements involved in the scheme, business website mfor.hu reported.

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In May, settlements included in the project offered some 14,835 homes for sale, edging up to 15,220 in June, which is a 2.5% increase according to real estate listings site ingatlan.com.

The price variation is enormous, however. Settlements in Borsod County (200 km northeast of Budapest) are trading homes at an average of only HUF 8,000-10,000 per square meter, meaning potential buyers are looking at a home price of just HUF 1-2 mln. Balatonakali (147 km southwest of Budapest at Lake Balaton) stands at the other end of the scale, with a record price of HUF 1 mln per square meter.

The current subsidy scheme is effectively a new search filter for families planning a move, ingatlan.com notes. The state grant helps these families to buy another home at a lower price than they might find in the bigger cities.

Given suitable infrastructural development, areas 40-50 km away from county seats might regain popularity and become attractive alternatives, mfor.hu notes.