The number of unsold homes has reached new highs in Budapest, with the highest rates in areas where property developers were most active over recent years.

There are 5,900 unsold new homes in the capital, 1,270 of them in the 13th District, as well as 190 ongoing residential projects, compared to the 250 average of recent years.

Property investors have cut back on new developments due to the credit crunch and falling demand, but the market is still saturated. In 2008, 25,000 new homes were built, which fell to 23,000 last year and is expected to drop below 20,000 in 2010.

The unfavourable market trends have pushed developers to the brink and will further dampen sector activity, the report predicted."

Source: Hungary Around the Clock

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