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The housing market in Budapest slowed, while the countryside declined

In April, ingatlan.com estimated that 11,250,000 second-hand and second-hand homes could be changed based on energy certificates, published real estate ads, and registered interests. Although this represents a very large increase of 90 percent compared to April of last year, the expansion is mainly due to the lower base, as traffic fell sharply in April of last year due to curfew restrictions. At the same time, current trading volume is still less than 20 percent below the level recorded in April 2019, Laszlo Baloge, a leading economist at the portal, commented. He added that in April of this year, more than 300,000 inquiries were received about used homes and homes for sale, and owners and real estate agents announced 37,000 properties for sale.

Promote the rural real estate market

Their analysis also shows that the turnover has changed dramatically over the past five years: as a result, the housing market outside the capital and Pest County has strengthened dramatically. In the first four months of 2021, the number of people interested in used residential properties for sale in the 18 affected counties was 99 percent higher than in the first four months of 2016. Additionally, this year, 43.5 percent searched Of all respondents reported second-hand residential properties outside central Hungary, compared to 29.4 per cent for the year 2016 as a whole.

The weight of the capital has also decreased in sales last year: last year only every sixth apartment in Budapest was changed, and other sales took place in other parts of the country.

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This is how prices moved

According to official data, the dynamic rise in prices in previous years slowed down considerably last year. Incidentally, this process cannot be attributed exclusively to the epidemiological impact, according to Laszlo Baloge, because it already started in the second half of 2019. The latest official data on the housing market confirm that 2020 has brought about a transformation in the second-hand housing market. The market said goodbye to the double-digit annual increase in previous years, the rate of price increase fell to 3 percent. Last year, the average price of second-hand apartments sold was 18.3 million HUF, which is 300,000 Swiss francs less than the previous year. Statistics from last year show an annual increase in prices of about 10 percent for new homes. According to preliminary data, nearly 113,000 residential properties were traded in 2020, compared to 2019, with a total of 157,000 properties traded. According to the expert, the number of sales last year, according to the final data, will be about 130 thousand.

Could come a revival this year

Zoltan Balogh emphasized that although the housing market uncertainty remains evident due to the Coronavirus pandemic, consumer confidence may improve thanks to the vaccination program and gradual cuts. The relaunch of the economy may lead to a sales boom. This year, plus new elements of the state housing program – including the housing renewal program, re-introduction of value-added tax on reduced housing construction – plus discounts available in previous years, delayed transfers during the pandemic and home purchases may aid the recovery.

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According to the portal forecast, although more sales are expected in the coming period, mainly outside Budapest, a significant increase in typical housing prices for previous years cannot be expected in the housing market in general. At the same time, there may be areas – primarily suburban or conurbation areas in large cities, as well as the Lake Balaton area and other recreational areas – where it is possible to increase prices above average due to increased demand.

The attractiveness of Europe’s big cities has also declined

According to the Takarék Index, the coronavirus epidemic has rewritten housing market trends not only in Hungary but also in other European countries. In Spain, the epidemic has caused a sharp decline, and in Italy, far fewer residential properties have been changed in the past year. In France and the United Kingdom, despite lower demand, prices have also increased during the pandemic.

Their analysts studied how the epidemic affected housing markets in four European countries as well as in Hungary. The common trend is that price increases in capital have stagnated or decreased, and the demand for single-family homes has increased everywhere compared to previous years, and this trend may remain sustainable with the rise of home offices.